Do Most Home Sellers Make Repairs After an Inspection in Today’s Market?
The dynamics of what potential home buyers request and what home sellers are willing to accommodate are significantly influenced by the current state of the local real estate market. These conditions are also often subject to negotiation, especially as market conditions fluctuate from buyers' to sellers' markets. This article explores the varied responses to home inspection findings, comparing a few recent real-life scenarios and highlighting how these decisions can impact the sale process.
Market Influence on Home Inspection Outcomes
The decision to make repairs after a home inspection can hinge greatly on the type of market dynamics at play. In instances where a home is under contract during a neutral to lean-sellers' market, as was the case for the author, sellers often agree to some repairs or concessions. However, the tone can change drastically in a strong sellers' market, as illustrated by the author's experience in 1999.
Neutral to Lean Sellers' Market
A notable scenario in a neutral to lean sellers' market involved a house with minimal structural concerns—a few cracks in the poured concrete foundation. After discussions, the seller agreed to seal these cracks to address the minor issue. Another instance during this period saw a radon test that was well below the state standard, but buyers still requested a radon remediation system. Despite this request, the seller ultimately declined, and the sale concluded successfully.
Strong Sellers' Market
Conversely, in a hot sellers' market, as the author experienced in 1999, sellers were much less inclined to make any significant repairs. Homes hit the market quickly with multiple offers well before the end of the day, often surpassing the initial asking price. Under these conditions, it was extremely challenging to convince sellers to make concessions or repairs, as they were more focused on closing the sale as efficiently as possible.
Buyer vs. Seller Expectations and Actions
Buyers typically come into a home sale with a list of expectations and concerns, often addressing both cosmetic and structural aspects. For instance, they might request the remediation of a bathroom exhaust vented into the attic, as well as the replacement of multiple two-prong wall outlets. In these requests, buyers are aiming to ensure the safety and functionality of the property.
Sellers, on the other hand, must weigh these requests against the overall cost and benefits. In the scenario presented, the bathroom exhaust vent to the outside and the replacement of two-prong outlets were both requested. However, instead of addressing these issues directly, the seller negotiated a reduction in the sales price. This approach often allows sellers to maintain control over the transaction and to address more pressing or cost-effective repairs themselves at a later date.
Conclusion and Final Thoughts
Ultimately, whether a seller makes repairs after a home inspection in today’s market depends largely on the current market conditions. While sellers may still be open to making concessions in a neutral to lean sellers' market, they are far less likely to do so in a strong sellers' market. Buyers should be prepared to advocate for their needs during negotiation, while sellers must also consider the feasibility and cost of such repairs within the context of the current market environment.
Understanding the dynamics of market conditions and how they influence seller behavior during the inspection and negotiation process is crucial for both buyers and sellers. This knowledge can help ensure that both parties are well-prepared and informed for a smoother and fairer transaction experience.
Keywords: home inspection, seller concessions, property market conditions