Can You Lower Your Offer on a House After Inspection?

Buying a home is a significant financial undertaking. A common question arises when issues are discovered after an initial offer: can you lower your offer on a house after inspection? It is generally possible to adjust a home offer following a professional inspection, provided certain conditions are met within the purchase agreement. The home inspection is an important step for buyers to assess the property’s condition.

Understanding the Inspection Contingency

A key component in many real estate purchase agreements is the home inspection contingency. This contractual provision protects the buyer, allowing them to evaluate the property’s condition through a professional home inspection. Without this contingency, a buyer’s options to renegotiate or withdraw from the contract based on inspection findings would be limited. Should significant issues come to light, this clause grants the buyer the right to request repairs, ask for financial concessions, or terminate the agreement without penalty.

The inspection contingency typically specifies a timeframe, often 7 to 14 days, during which the buyer must complete the inspection and address findings. This period begins once the purchase agreement is ratified. Should the buyer withdraw due to unsatisfactory inspection results, and provided the contingency terms are followed, their earnest money deposit is generally refundable.

Assessing Inspection Results

Upon receiving the home inspection report, buyers must interpret its findings. It is important to distinguish between major issues that warrant renegotiation and minor cosmetic or routine maintenance items. Significant problems often include structural damage, major system failures like HVAC, plumbing, electrical systems, roof integrity concerns, or safety hazards.

Minor issues, such as a leaky faucet or a loose doorknob, are generally considered part of routine homeownership and are not usually grounds for a price reduction or extensive repairs by the seller. Prioritizing issues based on their potential cost, impact on safety, and long-term consequences is advisable. To support future negotiation, buyers should obtain estimates from qualified contractors for the anticipated costs of repairing significant problems. This provides a clear financial basis for discussions with the seller.

Strategies for Renegotiation

Once significant issues are identified and their potential costs estimated, buyers can pursue several strategies for renegotiation. One approach is to request a reduction in the home’s purchase price to offset repair costs. Another common strategy involves asking for seller credits, where the seller provides funds at closing to cover repair expenses or a portion of the buyer’s closing costs. A third option is to demand that the seller perform specific repairs before the closing date.

The buyer typically submits a formal request to the seller, often through an addendum or amendment to the original purchase agreement. This request should be accompanied by supporting documentation, such as the home inspection report and contractor estimates. The success of renegotiation can be influenced by several factors, including the severity and cost of the issues, local housing market conditions, and the seller’s motivation to close the sale. A buyer’s willingness to withdraw from the contract under the inspection contingency can also influence the negotiation outcome.

Potential Outcomes and Next Steps

After a buyer submits a renegotiation request based on the home inspection, several outcomes are possible. The seller may agree to the terms proposed by the buyer, whether a price reduction, a seller credit, or performing specific repairs. Alternatively, the seller might present a counter-offer, proposing different terms or a partial agreement. In some cases, the seller may refuse to make any adjustments, particularly if the market is strong or issues are minor.

For the buyer, each scenario presents distinct options. If the seller agrees or offers an acceptable counter-offer, the buyer can proceed with the sale, ensuring all agreed-upon changes are formalized in writing as an amendment to the original purchase agreement. If the seller refuses to negotiate or the counter-offer is unsatisfactory, the buyer can choose to accept the property as-is or exercise their right under the inspection contingency to withdraw from the contract. Should the buyer withdraw within the stipulated contingency period, they are generally entitled to the return of their earnest money deposit.