This is my third installment of home inspection negotiations because they are so important in getting your home sold. I wish there was a simple way of saying if this happens then you should do that, but there are so many variables in home inspection negotiations. There is no set way to react to an inspection addendum requesting money or repairs.
Sometimes some buyers are just looking for a price reduction. Sometimes some buyers are just not handy, or do not know about home repairs. Some buyers might have gotten scared by what the home inspector said. Yes sometimes homes inspectors are wrong. However there are some issues that truly need attention. Sometimes it is a major repair that you knew nothing about.
The buyers may send you a laundry list of small to medium items or they may send you 3 to 6 items. What ever they send you they think it is important because the home inspector listed it. It's not worth arguing whether the home inspector is right or not. It is best to lay out a plan and have the items fixed, looked at by a professional, or reduce the price. You may decide to fix everything or you may want to counter.
Sometimes a professional may come out to fix it and then tell you nothing is wrong. Then you may have to get a receipt and have them state what they did and that the furnace is working good. (Furnace is just an example). On a laundry list or a list of 5 or 6 items you may be able to tell them you will repair the 3 important items and they can fix the rest.
During this home inspection period many times I can talk to the buyer's agent and find out what is important to the buyer and why. That helps me determine how we should react and counter the request. Many times when the buyer is requesting a price reduction that we think is high, it pays to get a couple of quick quotes. Then we can give the written quotes to the buy and perhaps lower what the buyer is asking for. We want to keep the process moving just in case we cannot agree on terms. We do not want to negotiate for 2 weeks and then the buyer back out. The house will have been off the market too long. So we want to respond quickly and get the addendum signed and sealed.
Sometimes you can get away with just doing a price reduction if it is a bigger repair, or something you do not want to get involved in. Sometimes a repair to plumbing or electric may end up creating a bigger mess where you have to repair walls or paint. Then it may be wiser just to reduce the price instead of doing it yourself.
I got into that predicament once. We were selling a home that needed a new septic system. The buyer gave us a quote of $8000. We knew we could get it done for $6500, but by the time we fixed the sprinkler system, graded the yard, and re-sodded it may have been smarter to lower the price by $8000.
Bottom line is.....there is no one set way to respond to a home inspection request. You need an experienced realtor to try to reduce your costs and trouble. There are so many factors to consider so you want somebody that is good at negotiations to get you what you want. Somehow we want to meet in the middle with the buyers and get your home sold!