How to Negotiate After Getting Your Building Report

Just received your building report and spotted some problems? Don’t stress-this is exactly why building reports matter. Here’s how to turn those findings into a stronger negotiating position and protect your property investment.

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Step 1: Categorise the Issues

First, break down what’s in the report:

Immediate Safety Concerns

• Electrical hazards
• Structural problems
• Major water damage

Major Repairs Needed

• Roof replacement
• Rewiring
• Foundation work

Minor Issues

• Cosmetic damage
• General maintenance
• Typical wear and tear

Knowing the difference helps you prioritise what to tackle during negotiations.

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Step 2: Get Professional Quotes

For significant issues, always get quotes from qualified trades or specialists. This will give you:

• Solid numbers to support your negotiations
• Realistic estimates for what repairs will cost
• An expert’s assessment for extra credibility

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Step 3: Work Out Your Negotiating Position

Add up your repair costs, and consider including a 10-20% buffer for unexpected expenses. Remember to factor in:

• Your time and inconvenience
• The hassle of arranging repairs
• The risk of further surprises

Formula:
Total repair costs + buffer = Your negotiation starting point

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Step 4: Present a Clear Case

When negotiating, keep it professional and fact-based:

• Use the building report as your evidence
• Present repair quotes to justify your position
• Stick to the facts-avoid getting emotional

Stay reasonable:

• Don’t expect the vendor to cover everything
• Be aware of market conditions
• Keep communications friendly-negotiation is a two-way street

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Step 5: Common Negotiation Outcomes

• Price reduction: The most common solution; buyer pays less to offset repair costs.
• Vendor repairs: Seller agrees to fix specific issues before settlement.
• Cash back: Seller credits a set amount at settlement for repairs.
• Walk away: For serious defects, sometimes the best move is to step back.

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Key Takeaway

A fair negotiation benefits both sides. With a well-documented building report and clear communication, you’ll be in the best position to protect your investment and reach a good outcome.

Need help with realistic repair costs? Use our Cost Estimator for instant NZ-specific estimates, or upload your report for a full analysis.

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All advice and costs are indicative. Always consult licensed professionals for tailored advice on your specific situation.