Residential real estate contracts utilized in Florida incorporate a provision granting buyers the opportunity to conduct a Home Inspection within a specified timeframe after the seller accepts their offer.
The contract outlines the actions that buyers and sellers are obligated or permitted to take based on the findings of the inspection report.
This piece is part of a periodic series on general negotiation tactics applicable to both sellers and buyers engaged in the acquisition and sale of residential real estate in Florida.
Effective strategies commence with thorough preparation, prompting sellers to anticipate potential issues that buyers may seek to address before the closing.
Consider the following suggestions as initial steps in formulating your strategy for selling property and responding to offers.
Strategy 1: Conduct a home inspection by a licensed inspector before listing your property for sale. Understanding your property’s current condition and anticipating items that may arise during a buyer’s inspection allows you to decide whether to address them before listing, be prepared to offer a credit, or await the buyer’s requests. The choice depends on the nature of the issue.
If offering credit seems preferable, having estimates from licensed contractors and suppliers ready facilitates negotiations with buyers. Conducting your home inspection provides the necessary information when determining whether offers will be submitted on a Standard or As-Is contract.
Even if sellers possess a recent home inspection report, buyers are encouraged to conduct their inspections, as different inspectors may observe distinct aspects when assessing the same property.
It’s essential to note that providing an inspection report to buyers does not absolve sellers of their duty to disclose known defects. Referencing a detailed June 2024 article on Seller Disclosures can provide additional insights.
Strategy 2: Familiarize yourself with how a Standard contract defines defective inspection items. The contract delineates the conditions under which items noted in an inspection report are considered defective and require the seller’s attention.
An integral aspect of this strategy involves distinguishing between “working condition” and a “cosmetic blemish” that does not impact an item’s functionality. Age alone does not necessarily necessitate fixing or replacing an item.
Strategy 3: Don’t hesitate to decline. Politely refusing, especially before obtaining detailed information, may protect sellers from agreeing to unnecessary repairs or incurring additional costs. Purchase negotiations should be cooperative rather than adversarial, ensuring satisfaction on both sides.
If a written offer is accepted at a price lower than the market-supported asking price, and the buyer requests repairs or replacements, sellers may consider that the accepted lower price compensates for potential condition issues. This applies to non-defective items not identified on a Standard contract.
If a Defective Inspection Item, as defined in the contract, emerges on an inspection report, the seller must address it irrespective of the sale price or any concessions already made.
Dealing with repair requests need not be a rigid refusal; sellers, armed with comprehensive information, can choose to accommodate some requests while declining others, apart from Defective Inspection Item repairs.
Awareness of the contract’s time constraints for requesting repairs is crucial for both sellers and buyers, as outlined in the Inspections and Due Diligence sections. For specific transaction details, consulting a Florida-licensed real estate attorney is recommended, as real estate agents cannot interpret or provide advice on legal documents such as contracts.
