Why Inspections Can Ratchet Down Your Sale Price

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You’re selling your house. You’ve got an offer. But here comes the inspector. Is your deal dead?

Probably not. But you’ll probably have to adjust your price.

Inspectors aren’t supposed to worry about the economic consequences of their decisions. They find what they find. But even if your buyer is not a bottom-feeder pushing for the absolute lowest price, you will probably end up offering a concession or two.

It’s not about the house. It’s not about the buyer’s attitude. It’s about the buyer’s economic realities. As we explain in our new Pricing Guide, buyers are being pushed by lenders to look at all their monthly financial obligations, not just the mortgage payment.

Commuting costs are now a consideration, especially with the volatile price of gas. Homeowners’ association dues aren’t the minor consideration they used to be – especially when some associations have to cover for delinquent members. Utility costs have been steadily rising.

And lenders want to see that the buyers have some emergency money in the bank. Nobody wants to the buyers to blow through their emergency fund fixing a longstanding problem.

We know it’s hard to sympathize with buyers, who seem to wander in a paradise of bargains. But, sellers, just know that when the inspector’s report takes $1,000 or more from your pocket, that the buyers aren’t the villains.

Image courtesy of Morguefile contributor alvimann.