Your home inspection revealed problems, and the seller wants the full price. Do you cave? Absolutely not! Thousands of dollars could be lost if you don’t know how to negotiate house price after inspection.

This guide arms you with tips and strategies to confidently negotiate a lower price or secure repairs. Let’s get started.

12 Tips on How to Negotiate House Price After Inspection

Read on to master the art of post-inspection negotiation and transform potential setbacks into savings

 

Work with a Reliable Agent

Before negotiating, make sure that you have a reliable real estate agent at your side. Someone who knows the local market, has comparable sales data, and can implement effective negotiation strategies. Such an agent can help you assess the significance of identified issues and advise you on appropriate repair requests or price reductions.

They’re also your advocate in legal and procedural aspects of renegotiation. This includes handling communications with the seller's agent, drafting formal amendments, and managing the timeline to ensure a smooth transaction.

 

Know the Seller’s Preferences

Don’t neglect the seller when figuring out how to negotiate house price after inspection, as seeing the matter(s) from their point of view benefits you.

To tailor your approach and increase your chances of a successful outcome, understand the seller’s motivations. Are they motivated by a quick sale? a specific price point? or avoiding further costs? Picking up on these subtle hints enables you to frame requests in a way that resonates with their priorities.

 

Pay Attention to the “As Is” Clause

While it doesn't eliminate your leverage, it can limit your ability to demand repairs from the seller (If that’s what you prefer). With “as is”, the seller essentially states they won't fix anything discovered during the inspection.

In this case, the scope of your negotiation changes, and now it may be better to focus on price reduction rather than demanding repairs.

 

Focus on Major Issues

How to negotiate house price after inspection when several issues are found? Simple, only focus on the major problems.

Remember that home inspections are all about finding problems that are hidden, and probably the seller isn’t aware of them too. Minor cosmetic flaws are right there to see, and you’ve seen them when viewing the house and placing the offer.

Moreover, such flaws rarely justify significant price reductions or repair requests. Instead, focus on major structural, mechanical, or safety problems that affect the home's value and functionality.

So, if you want to know what can you negotiate after home inspection, we’d say feel free to negotiate if there are major issues with …

• Foundation
• Roof
• Electrical system
• Plumbing
• HVAC
• Asbestos
• Lead paint
• Radon
• Mold and moisture
• Pest infestation
• Exterior

On the other hand, it’s better not to address minor defects like chipped paint, missing caulk, dirt, or cracked tiles.

 

Don’t Mix Repairs with Upgrades

When discussing how to negotiate home price after inspection, “repairs” refer to what needs to be done to improve the home's structural integrity, safety, or functionality.

“Upgrades” on the other hand are improvements enhancing aesthetics or features beyond the existing condition; they are not the seller's responsibility. They are also not legally obligated to pay for repairs. Therefore, focus solely on essential repairs to maintain a clear, justifiable position. 

 

Keep an Eye on Old Components

When reviewing the inspection report, pay attention to the old items. Are there any components and systems that are near or at the end of their lifespan?

If so, are you willing to pay for imminent replacements shortly after you move in? More importantly, is the seller going to help you out (in any way) or not?

 

Estimate the Repair Costs

To have a fact-based discussion with the seller, it’s important to accurately estimate repair costs. It’s recommended to use the estimate provided in the inspection report, as having multiple contractors visit the house may not look good.

Without a precise estimate, your request (e.g. for a realistic price reduction) lacks concrete support, making it easier for the seller to dismiss your request or counter a lower offer.

 

Use Supporting Documents

Following the previous tip on how to negotiate house price after inspection, you can back your claims and requests with supporting documentation.

It’s strongly advised not to hand over the inspection report to the seller. But you can use some of its pages or quotes when necessary. Your findings from credible sources and contractors can help too.

 

Don’t Just Ask for Lowering the Price

Since this is a big ask for many sellers, you might have a better chance if you ask for seller credit, closing costs, home warranty, buy-down points on your mortgage, or even combine price reduction and repairs.

Offering flexibility broadens your negotiation's scope and provides the seller with more palatable options than a straight price cut.

 

You Do the Repairs (If Needed)

When negotiating the house price after inspection, numerous sources recommend not to ask the seller to do the repairs.

Because even if the seller tells you that they will address all the issues before you move in, it may not be to your liking or worse, done by the cheapest bidder. So, try and negotiate for an alternative.

 

Keep Your Cool

Being calm (and somewhat neutral) during negotiations is crucial since emotional reactions can be easily misinterpreted or used against you. Also, don’t disclose your plans for the house (renovations, upgrades, etc.) to the seller or the listing agent.

At the same time, be clear with your trusted real estate agent about your expectations and preferred outcome.

 

Consider the Market Condition

When deciding how to negotiate house price after inspection, remember that market conditions significantly impact your leverage.

In a buyer's market (more homes than buyers), you have more power. But in a seller's market (more buyers than homes), you have less leverage; sellers are less inclined to negotiate, knowing they have multiple offers.

Understanding this dynamic lets you tailor the best approach, be more assertive or compromising depending on the market, and increase your chances for a successful deal.

 

Can You Negotiate the Price After Home Inspection?

You can absolutely negotiate the price after a home inspection. In fact, it's quite common as the home inspection report often reveals issues that weren’t detected during the initial viewing.

In Canada, you typically have a period (usually 3-7 days, specified in the Purchase Agreement) after receiving the report to negotiate based on its findings. This is often referred to as the "inspection contingency period”. (Read more about it at Rates.ca)

 

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As mentioned, sellers aren’t legally obligated to fix anything after the home inspection. However, this doesn’t mean that you have to overpay, face unexpected costs, lose their leverage, and miss out on a good deal.

Knowing how to negotiate purchase price after home inspection will help you greatly, but this journey starts with a solid inspection and detailed report. Houmse helps you find the best inspectors in your area, get free quotations, and use their service.