By: Tom Bushey

Renegotiate After a Home Inspection?

Tags: Buying a Home in Calgary

2020-03-08

Alright, you have a conditional purchase contract in place on a home and one of the conditions is for the satisfactory review of the property through a home inspection.

One of the mistakes that some buyers make is assuming when their licensed home inspector finds issues with a home (and they always do) that they have an opportunity to renegotiate the purchase price with the seller prior to releasing their condition.

A mistake? YES!

The home inspection condition provides the buyer two alternatives: a) to accept a home, blemishes and all, and release their condition, or b) to not release their condition because of the blemishes identified in the home inspection  (and thereby nullifying the purchase contract). There is no "option c" that automatically permits the renegotiation of the price.

Occasionally, if some issues are found that it is believed the seller is completely unaware of, then it might be worth trying to get the seller to lower their purchase price or complete repairs, however it would be typically for something they were unaware of. After all, they negotiated in good faith based on all the information to them at the time and they know their home's blemished better than anyone.

As a result, it would be rare to see a seller renegotiate the price; however, we're finding it more and more often that buyers think they have that right. And they get really upset when a seller won't budge. Is this another HGTV created phenomena? Perhaps. Or it is that their buyer's agent is doing a poor job in explaining the condition to them when they wrote the offer to purchase.