After a home inspection, it becomes increasingly important why you need representation by a Real Estate Agent. Questions like “What should I ask the seller to fix?” and “How should I prioritize these issues?” can weigh heavily on a buyer’s mind. In such moments, the guidance of a trusted real estate agent becomes invaluable. Buyers often call us to ask such questions. On the surface it makes sense, after all, we did the inspection. But many aspects are just out of our hands that affect the answer.
Market Conditions
Market conditions strongly affect what a seller may be willing or unwilling to either fix or issue a credit for. If the house you are buying is in a hot market and has multiple offers, the seller may feel like they do not have to repair anything or give any credits for repairs knowing there are other interested buyers. The seller may have a formal backup offer in place, which is when the seller agrees to sell the house to a 2nd buyer if the first buyer decides to not buy the house.
Conversely, if the market is slow and the house has been sitting for a long time, the seller may be motivated to offer repairs or credits.
In addition, not every house follows the overall market. A house in one neighborhood may still have high desirability in a slow market.
For these reasons, it is important to discuss any requests with your Real Estate Agent. Representation by a Real Estate Agent is key to understanding how the market is going to affect what you can ask for.
Seller Motivation
How motivated a seller is to sell will also play a factor. If a seller needs to move, they are more likely to be willing to agree to repair credits. If the seller already has bought another house is one example. Or perhaps the seller has to relocate for work. Or perhaps the seller is having financial difficulties that require them to sell quickly. Sellers who are highly motivated to close are more willing to compromise on repairs to close the sale.
On the other hand, some sellers have little reason to move. Some sellers feel they will only move if they get a certain price. Some sellers may be thinking about retirement, and are in no hurry to sell. Other sellers may have a strong emotional or sentimental attachment to the property that affects their motivation to sell.
Representation by a Real Estate Agent is key to helping find out how motivated the seller may or may not be.
Seller Pride
Occasionally we find sellers who simply have so much pride in their home that they do not believe their home needs any repairs. Particularly if the homeowner considers themselves handy with tools and repairs, or is an actual contractor. Because they have lived in their home without any problems for so long, they don’t see any issues and will dismiss the inspection report. In these cases, asking for repairs or credits can be tricky. Representation by a Real Estate Agent is key to navigating such complications.
Legal Limitations
The biggest issue that comes up in negotiating any repairs or seller credits is legally the seller has no obligation to do anything outside a few legal requirements. We covered this in our previous article Does The Seller Have To Pay For Repairs?
In California, the seller must provide smoke and carbon monoxide detectors where appropriate. As well as a water heat tank must be strapped. In the city of Los Angeles, there is an additional requirement for a shut-off valve on the gas meter.
Because sellers have no legal obligation to provide any repairs or credits, some sellers are just not motivated to do anything. Representation by a Real Estate Agent is key to understanding how the lack of legal obligations might affect asking for repairs or credits.
Representation by a Real Estate Agent for Legal Reasons
As a home inspection company, we are happy to answer any questions you have about the home inspections itself. However, because we are not licensed real estate agents, we legally can not enter into or help with negotiations. Only a licensed Real Estate agent can negotiate for any changes to the real estate contract. While we want to help you as much as we can, for legal reasons, we have to defer some questions to a licensed Real Estate agent. Thus, working with a Real Estate agent you trust is important.
Book your home inspection by calling 818-298-3405 or book online here.