A blog cannot deal with all aspects of a subject and is not intended to replace professional advice. It's purpose is to highlight information and identify areas of possible interest. Anyone wishing to discuss this blog or to make any comments or suggestions about this blog is invited to do so by either posting comments or emailing me directly.


Renegotiate After a Home Inspection?

Alright, you have a conditional purchase contract in place on a home and one of the conditions is for the satifactory review of the property through a home inspection.


One of the mistakes that some buyers make is assuming when their licensed home inspector finds issues with a home (and they always do) that they have an opportunity to renegotiate the purchase price with the seller prior to releasing their condition.


A mistake? YES!


The home inspection condition provides the buyer two alternatives: a) to accept a home, blemishes and all, and release their condition, or b) to not release their condition because of the blemishes identified in the home inspection  (and thereby nullifying the purchase contract). There is no "option c" that automatically permits the renegotiation of the price.


Occasionally, if some issues are found that it is believed the seller is completely unaware of, then it might be worth trying to get the seller to lower their purchase price or complete repairs, however it would be typically for something they were unaware of. Afterall, they negotiated in good faith based on all the information to them at the time and they know their home's blemished better than anyone.


As a result, it would be rare to see a seller renegotiate the price; however, we're finding it more and more often that buyers think they have that right. And they get really upset when a seller won't budge. Is this another HGTV created phenomena? Perhaps. Or it is that their buyer's agent is doing a poor job in explaining the condition to them when they wrote the offer to purchase.


No comments

Post Your Comment:

Your email will not be published
Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS®System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.