Negotiating Repairs When Buying a Home

Home inspections can turn up repair issues during the home buying process that can increase your cash outlay as a buyer.  Problems with appliances, plumbing, and HVAC are just a few issues that can crop up and the seller might not be aware that there was a problem before the inspector brought it to everyone’s attention.  If you find yourself experiencing repair sticker shock, keep these thoughts in mind: 

• The choice lies with you:  As the buyer, you get to decide whether you want to proceed with the purchase of the home or not and you can ask the seller to participate in the repair.  The seller however, is under no obligation to do so but often if you don’t have a long list, the seller will work with you. If you can't reach an agreement, then don’t go to contract.
• The first estimate you get on the potential repair cost may not be the lowest or most accurate: Before you decide to withdraw your offer on the home when the repair estimate comes back beyond your budget, find out if there is a way to get a better price on the repair.  Always go with a reputable company, but talk to a few specialists to see if there is a less expensive way to address the problem.  Maybe the heating system can be repaired instead of completely replaced. Perhaps if you have the work done in the summer months your vendor will cut you a break on the pricing because it is during his off-season. Think creatively!
• Counter-offer: Just as when you were negotiating the price of the home, asking the seller for a contribution towards the repair can result in a negotiation.

Remember, no home is going to be absolutely perfect, but doing what you can to negotiate the best situation—with repair professionals and with the seller—can salvage a deal that at first seemed to be going south.  

Liz Boucher is the Branch Manager of the Coldwell Banker Larchmont office which specializes in both residential and commercial real estate. Liz has been in real estate sales since 1998. She is an associate broker and has been managing the Coldwell Banker office since 2006. You can contact her at 914-834-7100 or at  liz.boucher@cbmoves.com