Sellers have to be prepared to make repairs for buyers, while buyers need to understand they’re buying a used home and not a new construction home.
As a seller, you want to make sure your home is in the best possible condition for your buyers and to remove any objections prior to marketing your home for sale. You can create advanced investments to make necessary improvements, but typically throughout the real estate transaction, inspections will be conducted. The buyers have the right to perform inspections on your home after an offer is accepted. After they conduct inspections, the inspection contingency within the contract allows the buyer to cancel the agreement, or negotiate with the seller as to who will be responsible for repairs or credits. At the time of the offer, the buyer will have their real estate agent add in their offer the repair provision.
Buying a home that is not new construction is like buying a used car. There is some wear and tear, but you have to assess your expectations versus what you need. You can request the seller to accomplish repairs on your behalf. Or, your real estate professional may advise you that the price listed is fair and takes into account the need for these repairs, giving you enough money to then invest in those updates even after the purchase. The real estate professional may advise negotiating a lesser price to provide you more funds to conduct the work independently. There are various options, but the “Repair Provision” or “Inspection Contingency” in the offer allows you to make those recommendations and is a primary part of the negotiating process.
When finding the best real estate professional for you, consider asking them how they utilize the repair provision on behalf of their clients. This can be a way to open up a dialogue on the various tactics and ensure they have your best interests in mind. This conversation in advance can also help you to prepare for buying or selling. If you are a seller, this can help identify potential early improvements or repairs that could increase your market value. As a buyer, this may help determine the amount of savings you may need in place to do updates on your own or even influence your purchase price.
Steve Prescott shares his experience with the inspection process and repair provisions in the Financial Friday video below. If you have additional questions about how the repair request process works or you have other Cheyenne real estate questions, please give us a call at 307-635-0303 and we’ll be happy to help you!