Many buyers wonder – “after getting the inspection report, can we go back to the seller and ask for a price reduction or credit?”
Can You Ask For Price Reduction After Inspection In Chicago?
The short answer is yes. Under standard Chicago real estate purchase contracts, buyers have the ability to ask the seller for repairs, credits, or even a reduction in the negotiated purchase price based on any issues uncovered during the home inspection.
However, there are a few important things to keep in mind if asking for a lowered price post-inspection:
- Ask for repairs first – Try to resolve issues via repairs before requesting a lower price. Repairs improve the defects found in the home rather than just receiving a credit. A request for repair may come across as more genuine than a blanket request for a credit.
- Document justification – The inspection report should clearly indicate defects or concerns impacting livability, safety or the home’s structure and systems.
- Vague “wear and tear” typically doesn’t warrant a credit.
- Cosmetic issues like carpet stains also may not deserve a price break.
- Back up requests with evidence.
- Be reasonable – Huge price reductions after inspection look questionable and can derail a deal. Keep requests modest and tied directly to issues found. As your real estate attorney, we can advise on sensible amounts.
- Seller resistance – Many sellers push back hard on reducing price after already agreeing on a number. Use negotiations and compromise. Request repairs first before asking for a reduction in price.
- Appraisal risks – A lower price can also result in a lower appraised value, potentially reducing the approved loan amount.
- Timing – Buyers typically only have a limited time after inspection to submit requests, so don’t delay. But avoid making requests before thoroughly reviewing the inspection findings.
- Get professional guidance – Rely on your real estate attorney and agent to help craft your request and negotiate effectively with the seller.
The Bottom Line
Buyers absolutely have the right under Chicago contracts to seek price reductions post-inspection when warranted.
But exercise this right judiciously, back up requests with evidence, and be ready to negotiate. An experienced agent and attorney are key to making this process go smoothly.
Learn how long does it take to close on a house in Chicago, Illinois.
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