Buying Sequim real estate is a challenging process, and there are a number of traps for the unwary. Your goal most likely includes finding your ideal retirement home, negotiating the best possible price, and negotiating the best terms. Today I want to share something that is very important for buyers, something that will help you understand what may happen during the due diligence period.
Sequim Real Estate Inspections
The home inspection is very important, because the inspector’s job is to find any and all problems in the house or even potential problems. The inspector will find out if there is standing water in the crawl space, and he will tell you if the composition shingles need to be replaced. Of course, most homes will not have major issues of concern, but what if your home does? What if the Sequim real estate you are buying has a problem that is fixable but would be expensive? Will the seller reduce the price or will he pay for it?
Sequim Real Estate Inspection Addendum
Here is the process. In Washington you can include a Form 35 Home Inspection Addendum with your Purchase and Sale Agreement. If the inspection indicates the composition shingles need replacing, for example, you can issue a Form 35R to the seller stating that you need an additional inspection by a roofing contractor. When you get that estimate, you can make a decision on what to ask of the seller. For example, if the roofing estimate for a complete shingle job is $12,000, you can ask the seller to pay for it, you can pay for it yourself, or you can ask the seller to split the cost with you. This could be done with a credit against the purchase price or by a reduction in the purchase price.
Sequim Real Estate – The Seller Response
Negotiating the terms at this stage of your Sequim real estate purchase can get very dicey. Look at this from the seller’s perspective. He lists his “precious” home at $375,000, and after two price reductions and a year later, he agrees to sell it to you for $305,000. You learn the roof needs new shingles at a cost of $12,000. You feel the home is worth $305,000 with a good roof. The seller feels he has already reduced the price of his home from $375,000, and by the time he agrees to sell you the home at $305,000, he feels like he is at the bottom, and while it may not be true, the seller often feels he is selling his home at a garage sale price. So if you ask him to reduce the price by $12,000 to replace shingles, he may just go off on his agent.
I have 37 years negotiating these kinds of delicate situations. Each Sequim real estate transaction is unique, so how we handle your negotiation will depend on a number of variables, but it is absolutely critical that you handle this appropriately, or your plan to purchase your ideal Sequim real estate could come to an abrupt end.
Last Updated on September 19, 2019 by Chuck Marunde