How to renegotiate with sellers post inspection reports: Pro Tips for fair compromise

[AJ Wong]

Any real estate professional knows..it's not closed until it's closed. 

Getting to contract is one step, the real work begins with getting to the closing table. As an investor focused buyer's broker I spend the majority of my time helping buyer(s) assess properties both before and after their offer is accepted. 

Since rarely are properties on the Oregon Coast (or anywhere for that matter) in flawless condition, generally post receipt of the inspection report there are items of concern that buyer(s) will want repaired or compensation towards. The biggest challenges? Decks. Foundations. Roofs and 'lesser' critical home hardware like HVAC, AC, plumbing and non functioning lighting and electrical. 

My approach is two fold:

- Gently keep in mind and remind clients there are two parties and perspectives involved.

- Address buyer's concerns with reputable local professional and expert evaluations and written estimates.

For example if the deck needs to be repaired or replaced, during the contingency period I'll attempt to have at least 1-2 licensed contractors provide written estimates. This dually provides evidence and reassurance to the buyer of hard anticipated costs and a written estimate to support and help validate the buyers request to the sellers. An ineffective strategy and contradictory to fiduciary responsibility is to suggest or guess. Sometimes market conditions can limit buyer negotiability, but overall I try to emphasize focus on repair items that would be of concern to any prospective buyer/investor. 

Sellers concessions are an excellent tool to close 'smaller' repair gaps as they help reduce the buyers cash to close and increase capital reserves for anticipated costs beyond closing. Another great tool is to incorporate a quality home warranty (paid for either or both parties) to alleviate some concerns about items that are functioning but not failed. I've found that accurate assessment with sufficient third party support can often help parties find middle ground. 

How do you address inspection issues or red flags?