subject: How Inspection Results Affect the Price of Foreclosed Homes for Sale [print this page] How Inspection Results Affect the Price of Foreclosed Homes for Sale
Although foreclosed homes for sale are offered at very low prices, some of them are in poor condition which could mean additional expenses for the buyer. In some cases, buyers who are unaware of the extent of the damage pay for the house thinking that they got themselves a bargain only to find out later that the cost of fixing the whole place costs more than the actual price of the property.
Using Inspection Report to Negotiate
Home buyers should conduct a thorough inspection of the house from the inside to the surrounding areas that include the lot, yard, garage and every single piece of land included in the deal. Hiring a licensed property inspector is a must since they can assess the whole property in such a manner that no one else could.
If certain problems were found, the buyer can use this information to negotiate for a lower purchase price using the argument that fixing the property will diminish his capacity to pay the whole price of the foreclosed homes for sale.
How Sellers Will Respond
A seller's response to a price cut request from a buyer would vary depending on how bad he wants to sell the property and how much discount the buyer is requesting. In rare cases, sellers will agree to work on some of the repairs, particularly if they are minimal. There is no harm on the part of the buyer to try and ask whether this is possible.
Another possibility is for the seller to provide a credit to the buyer that will cover the repairs or cut down the purchase price to accommodate repair costs. Buyers should never expect these two possibilities when dealing with private sellers, but some government agencies provide them as long as the property being sold is a government-foreclosed property like HUD and FHA foreclosures.
If there are more than two people interested in buying the foreclosed homes for sale, a seller will likely reject the request for repair discounts. Buyers should keep in mind that they have a better chance of negotiating for repair discounts if not a lot of interest has been generated by the property for sale.
