Who should be responsible for negotiating?

Question

Selling my home and currently in the due diligence period. I sent my agent a list of all the items and notes of what my contractor and I were planning on doing to address the items called out in the inspection, and if not, the amount of credit willing to offer or a note/justification on why I wasn’t planning on doing anything. Literally offered to fix everything, except for the 7 yr old water heater which is working perfectly fine, and the bathroom sink “leak” which does not have a leak after testing it. Also pushing back on a foundation inspection certification from Aquaguard simply because I feel like the company is incentivized to say there is something wrong even when there isn’t just so they can “fix” it. My agent asked me to hop on a call with the buyers agent to “explain all of the items and actions or inaction/including justification and to answer any questions.” It almost seemed like a preliminary negotiation call and the buyer’s agent was trying to push back on the last two items with me pushing back a bit as well. Isn’t this supposed to be my agents job instead of me doing this?

Also, it was obvious the buyer’s agent had the inspector nitpick on every little thing (e.g. 3 hairline settlement foundation cracks which from my understanding is common on most homes but he is asking if he can have a company certify the foundation, calling out no insulation in the attic when there is a cover above the door, asking for co2 sensors to be added when there’s not even gas appliances or attached garage, etc.). When first receiving the inspection report, my agent said that he’s only seen a report as nitpicky as this once before with one other home. Now, a couple times after when we spoke, it seems like he is trying to justify it and saying things like, “well you should look at things from the buyer’s perspective.”
I have a feeling that’s it’s because he’s not very good at pushing back even though there’s very little to push back on but I feel like he’s not even on my side but if he is, he’s doing a poor job of it and having a very lackadaisical attitude about it.

Bruce Woodruff · Answer

Yes, it is your agents job to explain your positions. That is ridiculous to ask you to 'hop on a call'......

Tell him to do his job.

Marcus Auerbach · Answer

Unfortunately most agents are just not very good and what you describe would not be acceptable to me. One of the biggest advantages of being represented is that you as the principal can stay in the background and can keep your cards close to your chest. Your instinct is correct to warn you, do not give up this position by getting on a three way call!

Your offer seems generous - a lot of sellers will simply tell the buyer it is what it is. You also don't need to justify, the simpler you keep it the better: we are willing to fix these 3 items or give you 3k is literally all you have to say. Sounds like a lot of what the inspector found are "honey- do-list " items the seller can take care of later.

A realistic buyer should expect normal issues on an inspection report. The only issues I would advise a seller to definitely fix are items that fall into the material defect category - a leaking roof, an inoperable furnace, active mold growth, active gas leak etc.

Sounds like you have an agent who has an issue with "confrontations" and would rather avoid them. Unfortunately it's too late in the game for a new agent, so tell him to communicate and negotiate only via email, that mitigates his weakness to some extend.

Taylor L. · Answer

Sounds like your agent is not doing a good job of adding value in the transaction.

James Dandiu · Answer

Not at all. Most items said we would address the issue and were simple fixes (e.g. trim trees, fill in cracks, address door binding to close flush, etc.). Only one repair item (leak above crawlspace where washer sits) had 4 bullets that may have been a bit more complex but not even. Anyone could’ve read off the sheet and it would’ve made perfect sense. (dry area, caulk around drain pipe, replace insulation, and test for mold).

Just received the amendment to address concerns after our 3 way call and it had two additional items that we didn’t discuss on the call so i wanted to push back and my agent asked if I wanted to hop on a call with the buyer’s agent. I said, “so you want me to push back?” He said email me and I’ll do it. Interesting.

Kevin Sobilo · Answer

@James Dandiu, It sounds like you were getting hyper-technical and very detailed in your response to each item on the inspection report. An agent trying to relay that might not be able to explain it as well to another nontechnical agent who then needs to explain it to the buyer. So, having you involved in explaining makes sense IF the parties want to discuss the actual issues or in this case dispute the existence of a couple of the issues.

When the agent is talking to you saying this like "think of it from the buyer's perspective" that is the agent talking to YOU. I know its easy to think that the agent will say the same things to the other side, but that isn't necessarily the case. When the agent is talking to YOU, they are trying to have you see the situation clearly and to help bring the deal together.

Each time there is a response, you should discuss not only what the response is but HOW it is to be presented. For example, "We will reduce the sales price $2500 and this is our FINAL offer".

An agent who tells you what you want to hear, might make you feel like they are on your side but that isn't always how to best serve the clients interests. Try to keep that in mind.

Patrick Rollo · Answer

The primary role of agents is a level of separation between buyer and seller such that they can effectively negotiate on their clients' behalf. Though they may not (and cannot) be expert in all topics, they should be the ones coordinating among different subject matter experts to ensure they are advocating for your interest.

Also, if you are open to offering credits/concessions in lieu of fixing the identified items in inspection, it can sometimes be better to offer a gross amount rather than a line-item list because then the opposing party will likely argue the cost of each individual item. Not only is acceptance probably more likely, but then the negotiation is simpler relating to an amount, rather than debating the specific logistics of individual repairs.

I hope it works out. It sounds like you are well-informed and I hope your representation can facilitate a positive outcome.

Best,

Patrick

Andrew Syrios · Answer

It's the agent's responsibility to negotiate on your behalf based on what you want. So I would tell the agent very explicitly what you will and will not expect. The market has certainly cooled, but it's still relatively hot, giving sellers the advantage. And in anything but a buyers market, you generally have to be pretty ruthless with such requests. I would offer them a few bucks and if they don't take it, tell them to walk. I suspect they will probably accept it.

Mason Hickman · Answer

@James Dandiu

Keep it simple: have buyer's agent put the requests in writing (if they haven't already). We have a version of this in Massachusetts called "Notice of unsatisfactory inspection" and then respond with your counter offer in writing. I agree with the above posters that having a separation is a major value to having an agent and you should get your money's worth!

Chris Seveney · Answer

@James Dandiu

I would have your agent put in writing what your willing to do offer and send it to them - get out of the verbal stuff and put it in buyers court to either buy it or walk. It’s like your negotiating against yourself now.

Jon Kelly · Answer

@James Dandiu it's certainly your agent's job to "negotiate" or explain the situation on your behalf. You hired them for a reason. Of course, the buyer's agent will try to pick apart the property or report as much as possible to drive the price down. Your agent should be standing firm and asking for an offer instead of drilling through the report with a fine-tooth comb.

However, the market will always tell you what your property is worth. How long was the property on the market? How many other offers do you have? If you don't have any other offers you may have to be willing to listen to your only potential buyer...

Who should be responsible for negotiating?

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