So, you've placed an offer on a property and it’s been accepted, that’s great! But any good investor knows that’s not the end of buying a home. Being able to negotiate the results of your property’s home inspection is the next hurdle you face. While some properties are purchased “as is” with the intent of an investor remodeling for profit, there are many other home sales intending to purchase a home that is “move-in ready” for potential renters.

Negotiating on the sale of the home based on the results of the inspection can be beneficial to an investor and below are some tips for how to best make a counteroffer with a seller who wants more out of a property than it may be worth.

Tampa Home Inspection

But first, it is important to note what is inspected during a home inspection. A home inspection includes a report of the following aspects of a home:

• the structure
• the roof and attic
• the systems of the home
• the basement (if any)
• the electrical and plumbing
• major appliances

A home inspection is a visual inspection and there are still many important aspects of the home that are not covered under the inspection. Read all the areas that are required by law and Florida statute to be inspected HERE. For example, your home inspector is not held accountable for discovering any damage behind walls because they do not inspect the property at more than a surface level. If they suspect there could be damage behind the wall because of visible indicators, such as water stains or soft drywall, then they will note these concerns on the home inspection report and likely recommend additional inspections for further investigation

Asking the seller to make repairs: While this option isn't always recommended, it is still up for grabs. Sellers consider this an inconvenience and may look in another direction if you ask for them to make repairs. Also, the repairs are up to the seller’s standards and the buyers have no say in what is done or how it is fixed.

Asking the seller for a credit for the buyer to put towards repairs: This is a far better option because it does not pile on work for the seller to do when they are ready to leave the property. As an investor, it is your job to come together with the seller to arrange for a reasonable price on what amount of money to leave for certain key repairs to be made.

Turn down the deal: If you elect the inspection contingency and are not satisfied with the inspection report, you have the option to not look further into that property. While no investor wants to walk away from a deal if the work that needs to be done outweighs the value of the home, it may be your sign to look elsewhere.

Be prepared for the seller to turn down your request to purchase the home on a contingency for repairs or a lesser sale price if the home is marketed “as is” or is listed at a fair value for the work needed to bring the home up to market standards.

If you feel there is room to negotiate, go in prepared. Here are two tips when entering a home sale negotiation.

• Get estimates first. You can make a better case for your request for a lower price by showing just how costly it will be to make certain repairs that are not reflected in the asking price.
• Ask for only the most important (or “big ticket”) items to be repaired. Adding a coat of paint or redoing the floors can be an easy enough project for an investor; however, a new roof can significantly affect the value of an investment property. Only bring up the “big” issues that affect the value of the home.

Looking for more information on home inspections or looking to set up an appointment to have a potential investment property inspected? AcuSystem Inspections can help you out! With over 30 years of building and home inspection experience and all the industry-recommended certifications on our side, AcuSystem will deliver expert inspection services. It is our mission, but we also make it our passion to thoroughly inspect your home.