All things real estate in the Greater Dayton, Ohio area. Home inspections, market updates, and more.

Negotiate Repairs After Your Home Inspection

How to Negotiate Repairs After Your Inspection

Are you about to purchase a home and need to know how to negotiate repairs after a home inspection? If so, you’ve come to the right place! Home inspections are a critical part of the buying process. Understanding how to negotiate repairs after your inspection can help you get the most out of your purchase. Explore the importance of repair estimates and the steps you can take to negotiate the best price for your new home.

Get an Estimate for All Repairs

It is crucial to get accurate repair estimates associated with the defects found during the home inspection. With precise repair estimates, you can successfully negotiate the purchase price of the home. A professional home inspector can provide you with repair estimates so that you can plan your budget accordingly. This will help you determine which repairs are most important and must be addressed before you close on the home. Knowing the repair costs can also help you negotiate a lower purchase price based on the estimated cost of repairs. With a detailed repair estimate report, you’ll have leverage when it comes to negotiating your new home.

Prioritize the Most Important Repairs

When it comes to home inspections, it’s essential to prioritize the most important repairs that may be discovered. It’s likely that your home inspector will provide you with a list of “maintenance” findings. Maintenance findings on your repair estimate should be taken with a grain of salt. If you believe the repair is necessary for the safety and habitability of the home, it may be worthwhile to negotiate the purchase price to account for repair costs. It’s always important to remember that during negotiations, a professional home inspector can provide you with accurate repair estimates to help you determine what repairs or negotiations are worth pursuing.

Research the Average Cost of Repairs

Before you negotiate repair costs with the seller, it’s important to understand the general cost of repairs. You can research the average cost of repairs by talking to contractors, getting quotes from specialists, or using online resources. While talking to a home inspector is a good option, not all are able to provide accurate repair estimates. A licensed contractor can help you get an accurate estimate of repair costs, but many contractors are now charging for quotes and are booked out over a week. Once you know the average cost of repairs, you can use it as leverage when negotiating with the seller for a lower purchase price. Ask your home inspector if they have the ability to provide accurate repair estimates. MVP Inspectors offers detailed and accurate repair estimate reports based on your home inspection.

Use the Repair Estimate as Leverage

Once you have a good idea of what the repair costs will be, you can work with the seller to adjust the purchase price in order to cover the repair costs. This is referred to as a “repair allowance”. You can ask the seller to make repairs or give you a credit at closing to cover the repair costs. If you want the seller to make repairs, make sure that these requests are reasonable and within the scope of the repairs noted in the inspection report. If the seller is unwilling to make repairs, you can request a lower purchase price to cover the cost of repairs. Repairs should be consistent with the recommendation of your home inspection and should not exceed the repair estimates.

Hire a Professional Inspector

When it comes to buying a home, having a professional inspection can be key to negotiating a fair purchase price. A professional home inspector is able to provide comprehensive repair estimates associated with any findings of the inspection. This helps the buyer and seller come to an agreement on the amount of money needed to cover repairs. The buyer can factor these repair costs into their purchase price. A qualified inspector can help the buyer understand any found defects when it comes to repair negotiations. MVP Inspectors offers detailed and accurate repair estimates provided by Repair Pricer.  If you’re in the process of purchasing a home in the Greater Dayton, OH region, give us a call – MVP Inspectors: 937-332-1413

Book Your Home Inspection HERE!

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How Much is a Home Inspection?

How much does a home inspection cost?

The average cost of a home inspection in Dayton, OH ranges from $350-700.

Are you considering buying a home in Dayton, OH, and wondering how much a home inspection will cost? If so, you’ve come to the right place! In this article, we’ll take a look at how much home inspections typically cost in Dayton, OH, and what factors can influence the cost of a home inspection. We’ll also cover the importance of getting a thorough home inspection, as well as tips for finding the best home inspector for your needs. So read on to learn more about home inspection costs in Dayton, OH, and how to ensure you’re getting the most value for your money.

How much do they cost?

In Dayton, OH, the average cost of a home inspection ranges from $350 to $700. This can vary based on the size of the property being inspected and any additional services that are requested in addition to a standard whole-house inspection. When deciding how much to pay for a home inspection, it is important to consider the experience of the home inspector. A reputable home inspector will be able to provide an accurate estimate of the cost of the inspection and will be able to explain the process in detail. It is also important to ask the home inspector if they offer any discounts or special rates for multiple inspections. Additionally, it is important to verify the credentials and license of the home inspector to ensure that you are hiring a qualified individual to conduct your inspection.

Factors that affect the cost of a home inspection

The size of the property and the type of home being inspected will largely determine the cost of a home inspection in Dayton, OH. Generally, larger homes and homes with unique structures will cost more to inspect than smaller homes or slab-on-grade homes.
The complexity of the inspection can also have an impact on the cost. An inspector may charge more for ancillary services such as termite inspections, radon testing, or sewer camera inspections.
Lastly, the experience and qualifications of the inspector also influence the price. Inspectors who have achieved higher certifications or who come from professional organizations such as the Internation Association of Certified Home Inspectors (InterNACHI) often charge more for their services due to their superior inspector credentials. Be sure to do your research and verify the credentials of any inspector you’re considering.

What is included in a home inspection?

A home inspection is an important step for any potential homebuyer. It provides peace of mind that the property is safe and sound. Home inspections typically include a comprehensive assessment of the interior and exterior of the home, as well as a review of the structure, and major mechanical systems.

The inspection begins with a visual evaluation of the exterior of the home, including siding, foundation, grading, eaves, and roof. The inspector will also check for any damage or potential problems. Inside the home, the inspector will inspect walls, ceilings, floors, and windows, as well as any built-in appliances. The inspector will also look at any insulation, ventilation, and electrical systems. Additionally, they will inspect plumbing systems, heating and cooling systems, and all major mechanical components. The inspector will pay special attention to areas that may be prone to moisture or other water damage. In some areas, a pest inspection may be included in the inspection. A pest inspection assesses any visible signs of wood-destroying organisms such as termites or carpenter ants. The inspector should provide a written report detailing the condition of each item inspected and any recommendations for repair or further evaluation. A thorough home inspection can help provide peace of mind that a potential home purchase is a safe and sound investment.

Blueprint for new construction house

How to find a reputable home inspector

Finding a reputable home inspector is an important step when buying or selling real estate. The first step is to ask family, friends, and neighbors for referrals. Make sure to research each inspector’s experience, qualifications, and reviews. You can also search online for licensed home inspectors in your area. Once you have gathered a list of potential home inspectors, be sure to contact them to ask any questions you may have. You should inquire about the inspector’s background, experience, certifications, and liability insurance coverage. Be sure to request references from past clients and verify that they are licensed with the state. You can achieve this by analyzing past clients’ feedback on Google reviews.

When researching home inspectors, it is important to find out how much they charge for their services. Home inspections range from$350 -$700, but the cost varies depending on the size of the home and the inspector’s experience. Finally, you should also make sure the home inspector is willing to explain the results of their inspection clearly. Ask the inspector if they can provide a written report that explains the condition of the home and any necessary repairs or improvements. If your inspector is on top of their game, they may even utilize digital reports. A reputable home inspector should be willing to answer any of your questions promptly.

If you’re buying, selling, or an investor in the Greater Dayton, OH area – give us a call at (937) 332-1413. MVP Inspectors is your premier property inspection company, serving Montgomery and the 14 surrounding counties.

Book your inspection online HERE and receive an instant quote.

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Will homeownership be possible in 2023? 57% increase in mortgage payments.

Making Sense of the Numbers

Let’s make sense of the numbers. To consistently track housing trends, let’s use the typical home value of an area, or the Zillow Home Value Index (ZHVI). The typical home value is different from the median home value, in that it reflects the 35th to the 65th percentile range of home values. This is your middle-of-the-road home, excluding any outliers. Sorry, but Yankee Star Jorge Posada’s $20,000,000 Florida Mansion won’t be included in these statistics. It never hurts to check it out, though – Jorge Posada’s FL Mansion Hits the Market.

Jorge Posada's FL Mansion

What this means for Ohio residents

Let’s get local. According to the Housing Data provide by Zillow, Ohio’s typical home value for August 2022 was $213,335, compared to $188,660 in August of 2021 – over a 13% increase.

How does this compare to other markets?

In California, the typical home value in August of 2022 was $775,876 while August of 2021 was $697,149 – an increase of 11.29%.

In Illinois, the typical home value in August of 2022 was $267,079 while August of 2021 was $238,801 – an increase of 11.84%.

Mortgage rates are also on the rise.  Freddie Mac (FHLMC) is expressing rates as high as 6% for the first time since 2008.

Current Mortgage Rates – Freddie Mac
Mortgage Rate Trends 2022
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Mortgage lenders are screaming that rates are still at an all-time low. So, what exactly does this mean for home buyers – is it time to buy, or wait until price corrections and 3% interest rates are the norm again? It’s no time to sit on the edge of your seats. Interest rates are not expected to dip anytime soon. According to historical trends, interest rates on a 30-year mortgage should hover, with small and incremental changes through 2022 and 2023. Compared to 1981, where home buyers were locking in at interest rates skyrocketed over 18%, it’s still a fantastic time to discuss your options with a lender. There is always a deal to be had.

Historic Mortgage Rates – Freddie MacHistoric Mortgage Rates at All Time High
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Effects of Rising Rates & Increasing Sale Prices

How much have monthly mortgage payments increased? The typical home value in Dayton, Ohio for the month of July, 2022 was $190,327. The median sale price in Dayton, Ohio for the month of July, 2022 was $196,500. This tells me home are still selling for more than the typical valuation, but not aggressively as previously seen [read: bidding wars]. The typical home value is a snapshot in time for the overall values of house in the area, whether they are for sale or not. The median sale price is calculated using the actual raw data of all homes sold in an area at a given period in time. To calculate the difference in affordability, let’s make the following assumptions:

Sale Price: $196,500

Mortgage Amount (20% Down Payment): $157,200

Mortgage Rate: 6%

Loan Term: 30 Years

With these assumptions, we can reasonably conclude that median monthly payment on a mortgage will be $942.

What would this have looked like in July of 2021? The typical home value in Dayton, Ohio for the month of July 2021 was $168,552. The median sale price in Dayton, Ohio for the month of July of 2021 was $180,000. Remember, we’re using median sale price, because that’s the most reasonable value to use when predicting what your purchase price would have been at this period in time. The assumptions for purchasing in July of 2022 go as follows:

Sale Price: $180,000

Mortgage Amount (20% Down Payment): $144,000

Mortgage Rate: 2.88%

Loan Terms: 30 Years

With these assumptions, we can reasonably conclude that your monthly payment will be $598.

Check out Google’s Mortgage Calculator Tools to give you a general understanding of your affordability and predicted payments.

Google Mortgage Calculator
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The difference in your monthly mortgage payment based on median sale prices and increased interest rates from July of 2021 to July of 2022 is $344. This is over a 57% increase! With a median household income of just under $35,000 in Dayton, Ohio, we can assume this increase could push many away from the idea of homeownership.

Is homeownership still in your future? Many homeowners are sitting tight and waiting for 2023 to bring us new opportunities. Write to us and we’ll be happy to connect you with a local real estate expert and mortgage loan officer so you can explore your possibilities for homeownership.

Dayton Ohio Home
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Brody Woehl is the Business Development Manager for MVP Inspectors and MVP Upkeep. By providing knowledge and resource to the local Miami Valley communities in Ohio, MVP Inspectors and MVP Upkeep have established themselves as the authority for real estate inspections and market trends.

https://www.mvpinspectors.com/

 

Sources:

https://www.census.gov/quickfacts/fact/table/daytoncityohio/INC110220

https://www.freddiemac.com/pmms

https://www.zillow.com/research/data/

https://money.com/housing-market-cooldown-bidding-wars/?ref=/homes-for-sale-price-cuts/

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