Know That Home/Flat Inspection or Site Inspection is a Frequent Negotiation Tool

Negotiation is just as critical on the seller side of the transaction. For example, many buyer-agents in the area will advise their clients to demand hefty price reductions from the seller for relatively minor repairs that are discovered during the Buyer’s home inspection. Most Buyers believe that if the cost of the repair is 10,000 rupees, they should get a 50,000-60,000 rupees reduction in the asking price. To some extent this is justifiable because you often don’t know the exact cost until the repair is done. Furthermore, if the Buyer has to coordinate the repair, they should be reimbursed for their time and effort.

However, there are agents that actually advise buyers to go ahead and make an offer close to the full list price on the home, knowing very well that there will be “something” on the inspection report they can use to get price reductions. When these items are discovered, the Buyer then demands unreasonable price reductions to the point that the Seller would never have entered the deal –  had they known the price the Buyer really wanted to pay. The Buyer is effectively negotiating the price of the home “after the fact”.

By the time some Sellers get to this point in the transaction, all they want is for the buyer to close the deal. They are tired of the process and often willing to reduce the price just to keep things moving along. A good agent should advise that the Seller get a home inspection before they even list the property, and then fix the items discovered in the inspection. This approach completely removes the home inspection as a bargaining tool from the buyer’s side of the transaction. Even if you don’t want to invest the money to repair the items, you can still give the list of needed repairs to a potential buyer before they offer, stating that their offer needs to reflect acceptance of these items. Then you know the price reduction they expect BEFORE you get into a lengthy Deal.

Negotiating a Real Estate Deal
Art of Negotiating A Real Estate Deal
Structuring a Real Estate Offer
Tools for Negotiating a Real Estate Deal
Personal Communication When Buying Real Estate
Unwanted Emotions While Negotiating A Real Estate Deal
Low Price War in Real Estate
Negotiate With Data in Real Estate
Use Proper Timing To Negotiate Real Estate Deals
Ask Inappropriate Questions While Negotiating A Real Estate Deal
Making a Counter Offer While Negotiating Real Estate Deal
Incentives Can be Offered by Buyers or Sellers

Strategic Buyers Guide in Real Estate
Strategically Sealing A Real Estate Deal