Seller not Willing to Negotiate after Inspection
It can be nerve-wracking to ensure you get everything right and not fall victim to home scams when you want to buy a house. There are plenty of red flags to look out for during the home buying process, but the most common one to watch out for is the seller’s unwillingness to negotiate after inspection.
When buyers see that their home inspections reveal things they didn’t expect or even don’t like, they may be tempted to walk away from their offer, forfeit their earnest money deposit, and have wasted several hours looking at its homes.
What does it mean when sellers won’t negotiate?
An inspection is your chance to get a look under the hood of a home. Whether you’re thinking about buying or selling, it’s smart to have an inspector take a good, hard look at your property before making an offer. Even when you are prepared to buy or sell on your terms, it’s also smart to remain open-minded and flexible in negotiations.
If you make a purchase offer on a home that needs repairs and can’t get it for less than market value, be ready to make concessions during negotiations to come out of the deal happy. That could mean having more work done by another contractor or negotiating lower costs.
Consider this before walking away from the deal
As a buyer, you have many more options than you might think. The next home could be just around the corner; it could be a short sale in your current neighborhood or an even better deal somewhere else. You can always start over and bid on another property – one that you’re excited about, will take good care of, and truly enjoy for years to come. Remember: Before you walk away from a deal because of price issues, there are many ways to cut costs and give yourself more flexibility in other areas without jeopardizing your financial goals.
Even if you don’t like the deal, keep your options open
When you’re negotiating, it can be helpful to consider a wide range of outcomes. Don’t just think about what you’d do if you don’t get your price—think about where you could go if they won’t even meet your asking price.
And then talk that over with your agent before starting negotiations. It may seem counterintuitive, but negotiating from strength is always more advantageous than discussing a concession upfront. If they won’t go lower than $500 over list price and you need $1,000 to consider making an offer, don’t take them off the table completely by offering the first concession.
Why didn’t they sell to us in the first place?
It seems counterintuitive, but there is the logic behind some lowball offers. If a home is listed at $2 million and you offer $1.7 million, it might be tempting to think: They’re desperate for a deal! We can get them down another $200,000!
That’s what we call a false assumption. Sellers don’t always have time pressure in real estate (just like any other industry). They often have multiple agents representing buyers who are willing to pay more than you. Getting someone to budge on price when they don’t want or need to sell right now is tough, if not impossible.
Does the seller have buyer’s remorse?
As little more than a seller, you would like to have your home sell faster and for the highest possible price. However, it’s very common for sellers to be in love with their homes, and it can be hard when someone says they might want to lower your price.
If a buyer isn’t ready or can pay top dollar on the spot, try waiting a few days before responding. This gives you time to get some perspective and also for them to think about what you’re asking for in your home.
Buyer’s remorse? – What are we doing wrong?
If a buyer has decided not to purchase your home at full price, they likely have some form of buyer’s remorse. Knowing what they’re thinking and doing wrong can help you avoid their mistakes and make sure you prevent them from your end as well.
Who wants more time with their home? (a dilemma!)
Then you’ve chosen to sell your residence but don’t know how long it will take. You would like to consider making certain that you must be working with somebody who will sell your home quickly and for the highest possible price.
You need someone who can market your home effectively and find a buyer or tenants quickly – or both! If buyers don’t bite in just a few weeks, it’s time for some marketing tactics.
How do we know our offer is good enough?
In most cases, appraisers are hired by both parties. If your offer is accepted, you’ll be expected to hire that same appraiser for a pre-closing appraisal. The appraisal determines how much your property is worth. That price becomes a reference point for negotiations between buyer and seller.
When starting, buyers are encouraged to offer below the asking price to give themselves room for negotiation. After a seller has accepted an offer, buyers must recognize they have limited space to move forward.
Suppose you’re convinced your request is sound and solid. In that case, there are strategies you can employ to gain leverage without being adversarial.
What can we do right now to help speed up the process?!
If you’re trying to sell your home and haven’t been able to find a buyer for more than a month, it can be frustrating. However, numerous purchasers have found ways to make their deal happen even if their credit is poor, lack sufficient funds for down payment or closing costs, or want their purchase in an unrealistic timeframe.
Always be open and honest with your inspector. They know more about the property than you do, so make sure you aren’t hiding anything from them. The inspector knows more about houses in general than you do, so you need to let them take control of most of what they inspect. This will make them feel needed in a process where they have little control.
Also, if there is an issue that needs immediate attention or even something that can be ignored, for now, let them decide when it should be done. If you are uncomfortable with any part of their report, talk to them about it. If they don’t give you satisfactory answers, find another inspector who will provide those answers.
You don’t want to buy a house without knowing everything possible about it first! Inspectors are people too, and they want their clients to be happy with their services and purchase. So work together and communicate openly throughout every step of the home buying process!