Selling a home comes with its fair share of challenges, but when buyers submit a lengthy repair list following an inspection, it can feel overwhelming. If you’re in the position of selling a home and your buyers have asked for every item from the inspection to be repaired, you might be wondering if this is typical, how to handle the situation, and what options are available to you. In this article, we’ll explore the nuances of inspection repair requests, provide strategies for negotiation, and highlight the factors sellers should consider when facing a long list of demands.
Understanding Home Inspection Repair Requests: Is It Typical?
The first thing to understand is that buyers asking for repairs following an inspection is not unusual. In fact, the home inspection phase is designed to reveal any potential issues with the property, from minor cosmetic defects to major safety concerns. Buyers are often advised by their real estate agents to request repairs based on the findings in the inspection report, especially when it comes to older homes, as the condition of such properties can be far from perfect.
However, it’s important to distinguish between reasonable repair requests and those that may seem excessive or even petty. For example, requests to fix serious safety hazards, like faulty electrical wiring or a leaking roof, are valid concerns that most sellers should address. On the other hand, minor cosmetic issues, such as replacing a cracked light fixture or repainting an exterior wall, may feel like nitpicking, especially if the home is over 100 years old.
In the case of the seller facing 40 items on a repair list for a century-old home, it’s reasonable to feel frustrated. But should you tackle the list or push back? The answer depends on various factors, including the condition of the home, the market dynamics, and your financial situation.
Evaluating Repair Requests: Major vs. Minor Issues
When faced with a long list of repair requests, it’s essential to categorize the issues into two groups: major and minor. Major issues are those that could pose safety risks or significantly impact the buyer’s ability to live comfortably in the home. These might include problems with the electrical system, plumbing, structural integrity, or roofing. Addressing these items is often crucial to moving the sale forward.
Minor issues, such as cosmetic imperfections or outdated fixtures, may not necessarily require immediate attention. Many sellers, especially those with older homes, may have lived with these imperfections for years without any problems. While buyers may request that they be addressed, it’s essential to recognize that not every issue found during an inspection needs to be fixed by the seller.
In the example provided, the buyers asked for the removal of disconnected knob-and-tube wiring, a common occurrence in older homes. However, an electrician had already confirmed that the wiring was no longer live, and it was deemed safe to leave in place. This is a classic case of a request that, while technically feasible, may not be necessary from a safety perspective. In situations like these, it’s up to the seller to decide whether to push back or offer a compromise.
To Negotiate or Not: Weighing Your Options
As a seller, you are not obligated to fix every item on the buyer’s inspection report. In most cases, the inspection is simply a starting point for negotiation. You can choose to address only the most critical repairs, offer a credit towards closing costs, or decline to make any repairs altogether. The key is to strike a balance that keeps the deal moving forward without sacrificing too much of your bottom line.
Here are some options for responding to repair requests:
- Fix Major Items, Decline Minor Ones: One common approach is to address only the most critical issues, such as safety hazards or code violations, while declining to fix minor, cosmetic problems. This shows the buyer that you are willing to cooperate on important matters but aren’t willing to make unnecessary repairs.
- Offer a Credit: Rather than fixing every issue, some sellers offer a credit towards closing costs. This allows the buyer to handle the repairs themselves after closing. Offering a credit can be a win-win solution, as it saves you the hassle of coordinating repairs while providing the buyer with funds to make the changes they deem most important.
- Counter With Select Repairs: If the buyer’s list includes both major and minor issues, you can negotiate by agreeing to fix a handful of items while rejecting the rest. This approach gives the buyer the sense that their concerns are being addressed while allowing you to maintain control over the scope of the repairs.
- Stand Firm: In some cases, you may feel that the home’s price already reflects its condition, and the buyer is simply trying to negotiate further discounts. If this is the case, you can stand firm and refuse to make any repairs, particularly if you believe the home is fairly priced and there is interest from other potential buyers. Just be prepared for the buyer to walk away from the deal.
The Risks of Over-Negotiating
While it’s tempting to push back on every small request, it’s important to remember that overly aggressive negotiation tactics can backfire. If the buyers feel that you are unwilling to meet them halfway, they may decide to walk away from the deal altogether. This can be particularly risky if the market is slow or if you’ve already invested significant time and resources into selling the home.
On the other hand, some buyers use repair requests as a tactic to back out of the deal. For example, if the buyer feels they’ve overcommitted or found another property they prefer, they may submit a long list of repair requests in the hopes that you’ll refuse to meet their demands, allowing them to cancel the contract without penalty. It’s essential to evaluate each situation carefully and consider whether the buyer is genuinely interested in moving forward or simply looking for a way out.
Consider Market Conditions
Market conditions play a significant role in how much leverage you have during negotiations. In a seller’s market, where demand outweighs supply, you may have the upper hand. If you believe another buyer will come along quickly, you can afford to be more selective about which repairs you agree to address.
In a buyer’s market, however, where there are more homes for sale than there are interested buyers, you may need to be more flexible. If your current buyer walks away, it could take weeks or even months to secure a new offer. If you’re in a situation where you need top dollar from the sale to fund the purchase of a new home, as the seller in this scenario mentioned, it might be worth compromising on some of the repair requests to keep the deal intact.
Practical Tips for Handling Repair Requests
- Prioritize Safety and Code Compliance: Focus on addressing items that relate to safety or code violations. These are the issues most likely to derail a sale if left unresolved.
- Consult with Your Realtor: Your real estate agent can offer valuable insights into what’s reasonable to repair based on the local market and what other sellers in your area have done in similar situations.
- Get Multiple Estimates: Before agreeing to any repairs, get quotes from multiple contractors to ensure you’re not overpaying for the work. If the repairs are extensive, you can use these estimates to justify offering a credit instead of handling the repairs yourself.
- Set a Repair Cap: If you’re willing to do some repairs but don’t want to go overboard, set a maximum amount you’re willing to spend on the work. Communicate this to the buyers as part of your counteroffer.
- Stay Emotionally Detached: Negotiations can be stressful, but it’s essential to stay as detached as possible. The buyer’s demands may feel frustrating or unfair, but the goal is to sell your home, not to “win” the negotiation.
Final Thoughts: Finding Common Ground
Receiving an extensive list of repair requests from a buyer after a home inspection can be overwhelming, especially if it includes many minor issues that seem unnecessary. However, it’s essential to approach these situations with a clear strategy. By evaluating which repairs are reasonable, negotiating selectively, and considering the broader market conditions, you can successfully navigate this phase of the sale.
At the end of the day, selling a home is a business transaction. While it’s natural to feel attached to your property and to balk at what might seem like nitpicky demands, the goal is to close the deal. Whether that means agreeing to a few repairs, offering a credit, or standing firm, finding common ground with your buyer is key to ensuring a smooth transaction.
David Gooden is a luxury real estate agent specializing in Eden Prairie homes for sale.