Residential real estate contracts used in Florida include a provision for buyers to have a Home Inspection performed within a certain time frame after their offer is accepted by the seller. The contract also specifies what buyers and sellers can or must do based on the inspection report's findings.

The most effective strategies start with being well-prepared, so it is a good idea for sellers to already be aware of possible condition issues that buyers might want fixed before closing. 

Think of the suggestions below as starting points for developing your own strategy when selling property and responding to offers.

Strategy 1 - Have a Home Inspection performed by a licensed inspector before listing your house or condo for sale.

By knowing the current condition of your property and having advance notice of any items that may show up on a buyer's inspection, you can decide whether you want to repair/replace them before offering your property for sale, be ready to offer the buyer a credit, or do nothing and wait for the buyer to ask for something. Depending on what an inspection issue might be, any of those choices could be the right one.

If you feel offering a credit might be easier, be sure to have written estimates from licensed contractors and suppliers ready for negotiation discussions with buyers. Having your own Home Inspection report also provides the information you need when deciding whether you prefer offers to be submitted on a Standard or As-Is contract.

Even when sellers provide a recent Home Inspection report, buyers are strongly advised to have their own inspections performed because different inspectors often notice different things when going through the same house or condo.

Keep in mind that having a Home Inspection available for buyers does not relieve sellers of their obligation to disclose known (possibly unseen) defects. 

Strategy 2 - Know how a Standard contract defines Defective Inspection Items

Defective Inspection Items are specific defects showing up on the Buyer's Home Inspection that the Seller is obligated and required by a Standard residential real estate contract to fix or replace. The contract itself defines and identifies the conditions under which something noted on an inspection report is a Defective Inspection Item.

An important part of this strategy is understanding the difference between Working condition and a Cosmetic blemish that does not affect an item's function, and that age by itself does not necessarily create a sellers obligation to fix or replace an item. A non-working item can be a DFI if listed as such on the contract. One that has only a physical blemish (yet still functions as intended) cannot.

Example - a non-leaking 10 year old water heater that still produces hot water is neither a Defective Inspection Item nor a Working condition deficiency. It may not look shiny anymore, though that is only a Cosmetic issue. Just being older does not make something defective, even when a buyer wants a new one.

Strategy 3 - Don't be afraid to say NO

Unless your house or condo has been on the market for an unreasonably long time, politely saying no before getting more detailed information might protect you from agreeing to something that:

• The contract doesn't require you to fix
• Could cost you more than it should

Of course when you have accepted a written offer, you want to reach closing as quickly and smoothly as possible under what is specified in the contract. Purchase negotiations are not a contest between seller and buyer. You can look out for your own interests while still allowing the other side to look after theirs. The best deals are when both sides are satisfied with how a sale progresses and closes.

If you accepted an offer lower than your market-supported asking price, and the buyer still asks for repair or replacement of certain items (or closing credits), consider that the lower price you accepted may compensate the buyer for condition issues that turn up on a Home Inspection report. This only applies to repair/replacement requests that are NOT Defective Inspection Items identified on a Standard contract.

A Standard contract doesn't care about any difference between asking and accepted prices, so if a contract-defined Defective Inspection Item shows up on an inspection report and the buyer wants it fixed, the seller is obligated to address it without regard to sale price or any concessions already made. The point here is - see Strategy 2 above!

Real Estate Contract

Declining buyer requests for repairs doesn't have to be a flat NO, slamming the door on their buying your house or condo. When you have prepared yourself as a seller with good information (maybe with Strategies 1 & 2), you may decide to cover one buyer request, offer to do a little less than requested on another, and fully decline to address another, depending on whether or not those requests are for Defective Inspection Item repairs.

It is also very important for both sellers and buyers to be aware of the contract's time limitations for requesting repairs. These are found in the Inspections and Due Diligence sections of the purchase/sale contract.

Being thoroughly prepared as a seller, along with knowing your rights and obligations under the contract being used are the best ways to protect your interests while still keeping buyers engaged and enthusiastic about buying your Florida house or condo.