You can refuse...but why? If you have a good buyer (good credit and sure to fund loan)why not negotiate the repairs? You might be able to split the costs or 60/40 something like that and keep your sale. it's much better to work with an interested party in hand, then to search for another one.
Speak with your agent for a clarification of your options. Walking away could leave you with financial responsibilities beyond what you expect. Be sure you clearly understand your options before deciding on a direction.
Home Inspectors should be thorough, but not too picky. (For example, some inspectors will point out cosmetic repairs that need to be made, like the paint in the kitchen is chipping. That's not a make-or-break issue.) So you should determine if the repairs needed are major in which case you might have to undertake them before sale or deduct the cost of the repairs from the final price negotiations.
This is just another stage of negotiations. This is one of the reasons you hired a professional. Take a deep breath and let the pros do what pros do.
What you are experiencing is common to every home seller. You should have been prepared and your agent should have buffered you better regarding the strategy in play. Just like the appraisal, you need to be prepared for the gamesmanship that will occur.
Your agent knows what options the buyer has. Your agent, if they were paying attention, knows the motivation of the buyer. Your agent will know if there is an equivalent home this buyer could choose. Your agent knows the tangible assets of your home and that of the other homes. Let the data guide you. Put your emotions to rest.-
Buyers seem to accept the obligation to keep asking for more, the sun, the moon, the stars and little 'spot' too. My buyers are the same way. They feel obligated to keep asking for more until the seller says, NO!
Of course sellers, with the guidance of their agent will say NO the American way....."SURE!"
It's like when I ask my very closest friends to come along as I run a ultra race. Knowing this involves standing around for 6 hours...they respond to my inquiry, "Do you think you can make it?" They say 'Sure." They are nice that way.
Don't sweat the little stuff. Take a small step in their direction, then say, "SURE."
Now, if you've got yourself mucked up with an FHA backed buyer...you'll need to listen to your agent.
What ever you do, don't take it personal. It is a process. it's gamesmanship. Rely on your professional to take ownership of the situation and 'sure' your way to success.
Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
If this issues uncovered are going to come back to bite you the next time around, you will likely be better off just to resolve it with this buyer.
Your options are to fix, offer a credit and or discount or take your chances on the next time. Remember too, now that you are aware of the major issue, you need to amend your seller's disclosure informing subsequent buyer's that the problem exists.
Your broker can hopefully discuss the issues in greater detail with the buyerâ€™s broker to find out what combination of credit/discount/repair they may find acceptable.
Best of luck with your sale.
The question is; has the buyer asked for any repairs? Repairs are a point of negotiation. The buyer may ask for just the 'major' item to be repaired. My advice; DO NOT repair the major item. Instead, negotiate a sum of money to fix the major item from your proceeds at closing. That gives the buyer money to make the repair after closing and you pay nothing out-of-pocket. The buyer should be responsible for making the repair, not you. That way, the buyer can choose their own contractor and have the repair made to their satisfaction.
Your Broker will guide you through the negotiations over repair issues. Your Broker most likely has a lot of experience negotiating repair issues. So, trust your Broker to help you navigate this bump in the road. Good luck!
If you are unable to make the repairs suggested by the home inspector, your buyer can buy your home as is at the agreed price knowing what needs to be fixed, ask for a price reduction in order to cover the costs of repairs needed to be made, or walk away.
Good luck! Try to keep the deal alive ...everything is negotiable.
The buyer's lender is another issue. Your broker should be able to give you some ideas as to which issues will trigger the underwriter.
I'd be inclined to repair the lender issues but without a lot of detail that is pretty sketchy advice.
I HATE it when buyer's agents hand over the entire inspection report. It tends to take the focus away from what really matters as health and safety and frequently triggers a lender delay.
As you note, it is also possible that you refuse to fix anything, the buyer backs down and accepts that response, but the buyer's lender then refuses to fund the loan based on one of those defects. First, and without getting into the details, there is a good chance the lender will not learn of the defect. But if it does, then the deal would fail and since financing failed the buyer would get the earnest money back (assuming there is a financing contingency).
Final thought: Generally it makes more sense to work with a current buyer than to kick the buyer to the curb and find another. The next buyer will likely find the same major defect. So it is probably in your interests to do what you can to keep this transaction together.
You can fix all, some or none of the items requested. However, if you don't and the buyer hasn't removed the contingency related to this, they can cancel contract. Then you just relist - have your Realtor state in the MLS - "As Is" if you don't want to do any repairs. Now, if the repair(s) are safety issues, lenders may require they be fixed. In that case, try to find an all cash buyer or possibly a conventional loan buyer (depending what the repairs are).
You, (and the Buyer), have three choices;
Lower the PRICE to allow for the repairs
Sell it As-Is and let the Buyer contend with it, or,
Chance losing the Deal.
Good luck and may God bless