Buying a Home → Going Under Contract
Negotiations & Results From the Inspection + Appraisal
Another good question every buyer should have while purchasing a home is:
"What should we do if the inspector finds something wrong with the house and/or what if the appraiser finds something wrong?"
As a result of the inspection and/or the appraisal of the home you are purchasing, you may find yourself back at the negotiation table with the seller. This can be an important part of the home buying process—if you’ve already determined that a house fits your home buying criteria, taking the time to resolve an issue can be well worth your time.
Depending on the circumstances, in most cases, a monetary value can be placed on any issues that arise. This monetary value would then be confirmed by you as an acceptable value, and you would go back to the seller and ask for the seller to remedy the issue by providing the necessary funds to fix the issue. If the seller agrees, the transaction will be mutual again and can proceed.
In most cases, the seller will also be unaware of issues that were revealed during an inspection/appraisal, and they may want to do their own research to confirm the findings. Once the seller has confirmed to their satisfaction, they will either agree or disagree to resolve based on your terms, and they will need to renegotiate the value of the home.
Now, should the seller not agree to remedy the issues at your value (or at any value), you then have a decision to make: Should you walk away, or renegotiate the entire agreement?
If an agreement can’t be reached, most REALTORS® will suggest a cooling off period of an agreed upon duration. This will allow both parties time to reassess the entire purchase and sale agreement, and either party has the opportunity to restructure an agreement that will now satisfy the newly identified needs of the seller while at the same time allowing the buyer time to review the market again and confirm they are making the best decision for the price and terms.
Although this process is sometimes nerve-wracking, these simple steps can and will save a lot of time and heartache when buying a home that will best meet all your needs. Warning: These simple steps are all too often ignored or discounted by buyers and sellers for a lot of reasons, none of which will benefit either party. Use a professional REALTOR® you trust to help you with every one of these simple steps.