Buying a home is one of the most significant investments you'll make in your lifetime. When purchasing a New Zealand property, it's crucial to ensure that you're making an informed decision. One key step in this process is conducting a builder's inspection, which can reveal potential issues with the property. Armed with this information, you can negotiate with the seller to arrive at a fair purchase price. In this article, we'll guide you through the process of negotiating a house price after a builder's inspection.
Hire a qualified building inspector
Before embarking on negotiations, it's essential to hire a qualified building inspector. They will thoroughly examine the property, checking for structural issues, plumbing and electrical problems, insulation, and any other defects. Make sure the inspector is licensed and has experience with New Zealand's building regulations and unique housing market.
Get a comprehensive written builder’s report
Once the inspection is complete, your inspector will provide you with a detailed report outlining all the findings. This report is your negotiating tool, so check that it is comprehensive and includes photographs of problem areas. These findings may include anything from minor repairs to significant structural issues that need immediate attention.
Prioritise the findings
After reviewing the inspection report, prioritise the issues based on their severity and potential cost. Understand that not all findings will warrant negotiation, but some may significantly impact the property's value or your willingness to proceed with the purchase.
Consult with your real estate agent
Your real estate agent can provide valuable insights into market conditions and trends, helping you determine a reasonable negotiating strategy. Your agent can also facilitate communication with the seller's agent, making the negotiation process smoother.
Determine your desired outcome
Before approaching the seller, establish your desired outcome for the negotiation. Are you seeking a repair or a price reduction to cover the cost of necessary work? Knowing your goals will help you craft a more effective negotiation strategy.
Open a constructive dialogue
Initiate a respectful and constructive dialogue with the seller. Present the inspection report findings and your concerns in a professional and non-confrontational manner. Be prepared to discuss the potential impact of the issues on the property's value.
Seek professional guidance
Consider consulting a legal advisor or conveyancer to assist you in drafting any negotiation proposals or counteroffers.
Negotiate in writing
Put all negotiations in writing to ensure clarity and avoid misunderstandings. This may involve creating an addendum to the sales and purchase agreement outlining the agreed-upon terms regarding repairs or price reductions.
Be willing to compromise
Negotiations often involve some level of compromise. Be open to finding mutually beneficial solutions that address both your concerns and the seller's interests. Remember that the goal is to reach a fair and reasonable agreement.
Set a deadline
Establish a deadline for reaching a resolution to avoid unnecessary delays. This can help keep the negotiation process on track and ensure that both parties are committed to finding a solution.
So, to make sure you’re getting value for money and not inheriting someone else’s building problems, get a comprehensive builder’s report before you commit to any property purchase. At Innohome, we pride ourselves on vast experience and quick turnaround.