Kathleen Kuhn, president and CEO of HouseMaster, one of the largest national home inspection firms, says, "When HouseMaster opened its doors nearly thirty years ago, interest rates soared to 17 percent and in some areas home sales dropped 50 percent. While there’s little chance the housing market will mimic those dramatic statistics, today’s buyers are in a better position to negotiate conditions found during their home inspection if they do it right."

Kuhn suggests keeping the following tips in mind when negotiating the price of a home:

1. Choose your inspector carefully.  Today’s sellers are slowly acknowledging their home may be worth less today than it was six months ago.  This does not make for a happy, flexible or open-minded seller.  While a buyer may think they have the upper hand, it will be easier to negotiate defects found if a qualified home inspector is hired. Verify the training the inspector has had, whether or not they have access to ongoing education, any additional certifications they may carry and if they have all the necessary local licenses.  Ask to see a sample copy of their report. A poorly written or unprofessionally prepared report will make it harder for the seller to take the inspection report seriously. 

2. Go on the inspection.  A good home inspector will encourage the buyer to go along on the inspection.  Being there will make the written report much more meaningful and a qualified inspector will demonstrate how to operate many of the systems of the home, show the buyer where important shut-off valves are, and point out any areas obstructed by furnishings or storage.  It will also make it easier to verify that repairs have been made and check any areas that were obstructed at the time of the home inspection during a final walk-through (when the home is vacant).

3. Focus on the major elements.  Every home has minor or cosmetic flaws.  Peeling wallpaper or cracked sidewalks are not the things an inspector is paid to report on, although he may document it.  A general rule of thumb is that anything that would cost less than $500 to fix should be considered normal maintenance.  Repairs that exceed that amount are more likely to be negotiable.

4. Be realistic.  Buyers often try and negotiate $2 for every $1 of actual repair expense.  Nothing will sour a deal faster than trying to take advantage of a situation during negotiations.  Get several estimates for needed repairs so that negotiations are realistic and financial requests can be substantiated.

5. Consider a home warranty.  If many of the major systems in the home are working but are older, ask about a home warranty.  The seller may even consider paying for this coverage which will reduce the risks of expensive replacement costs in the first year.  Most warranty programs are renewable so a buyer can opt to continue the coverage after the warranty period expires. 

"A professional inspection report and estimates for repairs arm a buyer with the right documentation to engage in realistic negotiations," concludes Kuhn.  "Hiring a qualified, professional home inspector with solid credentials and a well written report will go a long way in making negotiations go smoothly."