Real Estate Investment 101: Getting Started

Negotiating When a House Needs Work

You can determine if a single-family home needs work by using several methods. First, you will view homes for sale to find one you like. When you view a house, you might see some problems that need repairs. Secondly, you can get a home inspection to learn more about the issues that require repairs. If you want to purchase a house that needs some work, you can negotiate on the price and work. Here are some ways you can handle the negotiations.

Hire an Experienced Agent

First, you must have a real estate agent assisting you when buying a single-family home. Buying a house without one is a risky mistake that you can easily avoid. Your agent will help you in several ways, and one way is by helping you find the issues that need some work. Secondly, your agent will help you determine the best strategies for negotiating the repairs.

Consider the Price

As you begin looking at the issues you discovered, you must consider the home's asking price. Has the seller already factored the repairs into the asking price? In many cases, sellers will factor these things into the price, which means you might not have a lot of room to negotiate on the house. If the asking price is too high considering the work it needs, then you can find ways to negotiate.

Offer Less for the House

The first negotiation strategy to consider is offering less money for the house purchase. If you think that the seller's asking price is too high based on the repairs the home needs, you could offer less money for it. If you choose this option, you will purchase the home with the issues it has. You would then be responsible for paying for the repairs.

Include Contingencies for the Repairs

The other method you can use is adding contingencies to the purchase offer that require the seller to repair the things the home needs. If you choose this method, you can offer the amount the house is worth after the seller makes the repairs. The seller will be responsible for fixing all the issues you listed in the contingencies on the purchase offer for the home.

If you want to purchase a home that needs some work, you can follow these tips. You can also ask your real estate agent for more advice about negotiating on a single-family home purchase.