If I Could Eliminate One Task Forever, It Would Be Repair Negotiations
This post spawned from a question in the Q&A by John Palmer, asking if you could eliminate one task in your daily routine, what would it be? Of course, besides eliminating at least 20 spam texts from my phone each day, my other strong reaction was repair negotiations!
And before anyone says, “It’s your job—get used to it!” I know. Believe me, I know.
Negotiating repairs is a significant part of representing buyers and sellers, and after decades in real estate, I’m certainly not surprised when the process gets complicated. I’m simply answering the question: If I could eliminate one annoying task from my workday forever, what would it be?
Repair negotiations. Without hesitation.
No matter how thoroughly we prepare buyers, many emerge from the inspection wanting everything repaired. The dripping faucet. The loose doorknob. The fogged window. The HVAC system that is older—but still performing the function for which it was intended.
Suddenly, an inspection report becomes a shopping list.
On the other side, no matter how carefully we prepare sellers, some respond to the first repair request with:
“Let them walk! I’m not fixing a thing. They aren’t buying new construction!”
And there I am, trying to prevent a perfectly good transaction from imploding over an aging water heater, a few questionable outlets and approximately $7 worth of caulk.
Inspections Don’t Come With Automatic Upgrades
An inspection is meant to help buyers understand the condition of the home they are purchasing. It may uncover legitimate safety concerns, defects, deferred maintenance or systems that are no longer functioning properly.
Those issues deserve thoughtful consideration.
But an inspection is not necessarily an opportunity to have every older component replaced with a brand-new one. A 15-year-old HVAC system may make a buyer nervous—and understandably so—but if it is operating properly, replacing it is not automatically the seller’s responsibility.
Of course, explaining that during an inspection period can be like trying to calmly discuss umbrella etiquette in the middle of a hurricane.
Then There Is the Principle of the Thing
North Carolina’s Due Diligence Fee adds another layer of drama. It is paid directly to the seller and is generally nonrefundable if the buyer terminates the contract during the Due Diligence Period. The buyer may walk away for any reason—or no reason at all—but the seller typically keeps that money.
I have seen buyers put down a $10,000 Due Diligence Fee, receive a repair estimate of approximately $3,000 and threaten to walk away from the entire transaction if the seller refuses to make the repairs.
Yes, you read that correctly.
They are willing to lose $10,000 over a $3,000 disagreement. Let me repeat that: they are willing walk away from $10,000 over a $3,000 disagreement. Why? “It’s the principle.”
Meanwhile, I’m quietly trying to determine when principle stopped understanding basic math!!
Sellers can become just as entrenched. They may risk losing a qualified buyer, returning their home to the market and explaining why the previous contract fell apart—all to avoid addressing repairs that the next buyer’s inspector may identify, too.
At that point, it is no longer entirely about the repairs. It becomes emotional. Buyers feel the seller is being unreasonable. Sellers feel the buyer is taking advantage of them. Both sides begin digging trenches and preparing for battle.
The Real Negotiation Is Often About Perspective
And thank goodness for a skilled, communicative agent on the other side! A good agent keeps the conversation moving, presents the options to their client and helps everyone remain focused on finding a workable solution. Heaven help us, however, when the other agent is non-responsive—or worse, attempts to negotiate based on what they think should happen without even consulting their client. A repair negotiation that might have been resolved with one thoughtful conversation can quickly become unnecessarily contentious. But that, my friends, is an entirely different blog post!
This is where experienced agents earn their keep. We help buyers separate true concerns from wish-list items. We help sellers understand the difference between saying no strategically and saying no simply because they resent being asked. We even help other agents understand too sometimes.
We gather estimates, explain the risks, suggest credits or price adjustments when appropriate and keep reminding everyone of the bigger picture:
Do you still want to buy or sell this house?
Most repair negotiations do eventually reach a reasonable resolution. The buyers get help with the concerns that matter most. The sellers avoid making every requested repair. Everyone takes a breath and moves toward Closing.
But if someone offered me a magic wand that could make one part of every real estate transaction disappear forever? Yep, you guessed it! I would wave goodbye to repair negotiations before they could finish asking the question!
What is the one task in your workday that you would happily eliminate forever—even though you know it is part of the job?
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