Mastering the Art of Negotiating Repairs: Home Buyers 

Buying a home is an exciting journey, but the inspection phase often brings to light issues that may need addressing and can cause some uncertainties in home buyers. Negotiating repairs is a delicate process, balancing fairness and strategy to ensure as a home buyer you are getting the best deal possible. To help you navigate this, follow this step by step guide.

STEP 1: Focus on Major Issues

When reviewing an inspection report, not all concerns are creating equal.  Small cosmetic fixes may not be worth negotiating, but significant safety, structural, or functional concerns should be your priority. Here are the top four areas to evaluate: 

1. Roof:

   • Look for signs of significant damage, such as missing shingles, leaks, or a roof near the end of its lifespan.

   • Repairs here can be costly, so it's reasonable to request action if issues are flagged.

2. Foundation:

   • Cracks, settling, or uneven floors are red flags. Foundation problems can lead to serious structural issues.

   • Request a professional assessment and estimate for repairs if the inspection uncovers major concerns.

3. Electrical:

   • Outdated wiring, overloaded panels, or safety hazards like double-tapped breakers should be addressed.

   • Safety is a strong negotiating point, as electrical issues pose risks to both life and property.

4. HVAC:

   • Ensure the system is functioning properly and has been maintained. Repairs or replacement of HVAC systems can be expensive.

   • Focus on issues that impact energy efficiency or safety, like carbon monoxide leaks.

STEP 2: Determine Your Deal-Breakers

Before entering negotiations, make a list of what you absolutely cannot live with.  Some commone deal breakers include:

• Foundation issues requiring extensive work.

• Major roof repairs or replacements.

• Electrical hazards that could be a hazard.

• HVAC system that is not functioning properly and needs to be assessed.

Be clear to yourself and your agent about these non-negotiables when creating your repair request.

STEP 3: Create a Repair Request List

When requesting repairs, aim to be reasonable and focus on the essentials.  Follow these tips to ensure you are focusing on the essential items:

1. Stick to Health, Safety, and Structural Issues: This demonstrates that your concerns are legitamate and not nit-picky.

2.  Bundle Requests by Category: For example, lump all electrical repairs together rather than list seperately.

3.  List in Order of Importance: Start with your most important and urgent repair request to least important. 

4. Request Repairs or Credits, Not Both: Decide whether you want the seller to complete the repairs or provide a credit in order for you to handle post close.  Keep in mind a credit value you would request if choosing repair request, in case the sellers come back and suggest credits in lueu of repairs. 

STEP 4: Walk Through the List with Your Agent

Collaborate with your real estate agent to ensure your request is strategic and fair.  Not sure how to go about that, here is how:

• Review your priorities and deal breakers together.

• Seek your agent's advice on what is reasonable based on the current market.

• Understand that the seller may counter or refuse some or all the requests, so plan to negotiate.

STEP 5: Be Prepared for Compromise

Not every issue will be resolved exactly as you would like.  Decide which are your deal breakers and which you are willing to compromise on.  Sellers are other more willing to address major issues when they see a well-organized request. 

Negotiating repairs is all about balancing, what is fair for both buyer and seller. By sticking to the major findings (areas that can cost you the most, i.e. - roof, foundation, HVAC, and electrical) and determining your deal breakers, you and your agent can create a repair request that is reasonable to both you as the buyer and the seller. When going back and forth with the seller remember why you are doing this, it is for homeownership.  Emotions can run high during this time and some make emotional decisions that can cause them to walk away from their dream of homeownership.  Work closely to your agent to strike that right balance and focus on the major concerns to ensure you move forward confidently with your home purchase.