What Repairs are Mandatory After a Home Inspection: A Buyer’s Guide to Negotiating As-Is Listings3/17/2024 When you're on the hunt for a new home, especially one that's more than a decade old, you'll likely encounter properties listed "as-is." This term can send a shiver down a buyer's spine, conjuring images of hidden faults and future headaches. However, an "as-is" label doesn't mean you're powerless in the face of repairs. Understanding your rights and the negotiation process after a home inspection is key to ensuring you're not left with an undue burden.
**What Does "As-Is" Really Mean?** An as-is listing indicates the seller has no interest in making repairs before the sale. They're presenting the property in its current state, imperfections and all. This is commonplace for homes over 10 years old, where wear and tear have had time to take their toll. **Buyer's Right to Request Repairs** Despite an as-is listing, as a buyer, you retain the right to request repairs after a home inspection. This is where the art of negotiation comes into play. Sellers may be unwilling to address every issue, but they might consider fixing critical problems to avoid the prospect of their home languishing on the market. **Health and Safety Repairs Take Priority** Typically, sellers are more amenable to addressing health and safety concerns. These can range from microbial growth, which poses serious health risks, to the absence of essential safety devices like smoke and carbon monoxide detectors. Other significant issues may include the need for ground fault circuit interrupters (GFCIs) and arc fault circuit interrupters (AFCIs) to protect against electrical hazards. **Negotiating Beyond the Basics** Depending on the initial offer and market conditions, a seller might entertain further negotiations. Buyers can propose to handle or share the cost of outdated HVAC systems or request a credit at closing to address major systems like plumbing, heating, air conditioning, and electrical. These gestures can be a win-win, alleviating the seller's immediate burden while ensuring the buyer's future comfort and safety. **The Challenge of Major Repairs: Roofing as a Case Study** Major repairs present a significant challenge in negotiations. Convincing a seller to pay for a new roof, for example, can be tough due to the high cost, which typically ranges from $15,000 to $30,000. In such cases, a successful negotiation often hinges on the market dynamics and the negotiation skills of the representing agents. **The Importance of Skilled Negotiation** The negotiation phase is arguably the most complex part of any real estate transaction. It's here that the expertise of your real estate agent comes into sharp focus. A skilled negotiator can make the difference between a fair compromise and a deal that leaves you, the buyer, shouldering the majority of repair costs. Choosing an agent with a proven track record in negotiation is crucial. **Conclusion** Navigating the waters of an as-is home purchase can be challenging, but it's far from impossible. With the right approach to home inspection repairs and a savvy negotiator by your side, you can ensure that your new home is both a safe haven and a wise investment. Remember, every home will show signs of age, but not every buyer should have to face the future alone. Negotiation is the key to striking a balance that works for both parties, turning a house into a home David Salvato California Inspection Authority INC. 1-949-981-8320 www.ciahomeinspection.com Some information may be copyright protected. All intellectual property belongs to CIA.
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AuthorDavid, the author of this inspection blog specializing in Home Inspection and maintenance tips. He brings decades of experience to every post. He is widely recognized as a trusted source for accurate and reliable home inspection information. David is known as one of the foremost authorities on home inspection in California. Archives
July 2024
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