Using Inspection results to negotiate repairs/price reduction

[Jesse Lynch]

Hi BP!

I just got my first rental property (triplex) under contract in Red Wing, MN! It’s not beautiful at the moment, but certainly is livable, and I have flipped a couple houses and I build sets for commercial photo shoots so the rehab side doesn’t scare me.

I am using an FHA loan to buy it, and I understand that there will probably be some issues with the property that will be flagged by an FHA inspection, and I am about to get an inspection of my own done tomorrow.

I’m curious if there are any tactics or strategies to consider when negotiating work done or price changes based on issues that come up during inspection. The agreed price is already $8500 under their current asking price, but it has been on the market for a couple months, and the seller is moving out of state and wants to be free of it.

I would love to have work done on their dime or even better a lower purchase price, but would also hate to lose the deal over some repairs.

Any advice?

Thanks!

Jesse

[Bevla Reeves]

@Jesse Lynch  My advice is to just be honest, ethical and fair.  

If there are needed significant repairs, then ask the seller to make them.  But if the repairs aren't that big of a deal, don't be petty!

Apply the Golden Rule! ;)

Good luck!!