Post Inspection Negotiations.

[Jeremy Swanson]

Hey BP community!

First let me say that you guys/gals have been a humongous resource in helping me through my RE journey. I appreciate the feedback I have received on the few posts I have made concerning this specific deal.

On to the topic at hand. After fully reviewing all the home inspections I ordered I have decided to consult with a GC about my next move. I'm under contract on my first deal. It is a 4-plex. Excluding cosmetic issues, there are definitely a few somewhat costly things that will need to be fixed most of which are safety issues but some other things too like small leaks, exposed wiring, broken windows etc. Taking into account that I live in a buyer's market, I wouldn't think the seller would want the hassle of starting this process over again with another buyer. Plus I know for a fact that he's tired of the headache of property management which tells me he's motivated. On the other hand, he is an experienced RE investor so I know this isn't his first rodeo.  

All things considered, I think I can get away with asking for something fairly decent in the post inspection negotiations. I would like to get aggressive and am considering asking for a credit based on what info I get back from the GC.  I know it's asking a LOT but is there anyway someone could walk me through how to analyze the reports and come up with what I should ask for? I can DM you the reports upon request.

Thanks!

[Mike Cumbie]

Hi @Jeremy Swanson,

My advice is to not bring up anything that any competent person would have seen at walk through. For instance if a door is off a hinge, the roof is old or a broken stair. These are things that most people selling figure you have already built into your price. Now things that a "layperson" would not know... The exhaust for the hot water heater is 3 inch instead of 4 inch pipe, the electrical panel is a model that has a recall on it, There is slight seepage at the galvanized water main coming into the basement etc. Those items in my experience have owners who will at least stop and be a little more objective to the requests.

If you should have seen it, they almost always feel like you are trying to be slick. If they are things they didn't even know about themselves they are usually more receptive to at least hear out your request. 

Good Luck!