Negotiating on a Finished Unit: A Worked Example Using Inspection Findings

A priced defect list changes a negotiation from opinion to arithmetic. An example showing how.

Buyers negotiate on feeling, and sellers resist for the same reason. An inspection report with priced findings converts the conversation into a calculation, which is a considerably stronger position for the buyer and easier for the seller to accept.

The situation

A buyer has agreed a price in principle of SAR 920,000 on a ten year old villa, subject to inspection. The inspection identifies several items requiring attention.

Assumptions (illustrative)

• Agreed price in principle: SAR 920,000.
• Air conditioning units at end of service life: assumed replacement SAR 45,000.
• Roof waterproofing requiring renewal: assumed SAR 28,000.
• Two bathrooms requiring drainage correction: assumed SAR 16,000.
• External paint requiring renewal: assumed SAR 22,000.
• Minor items across the property: assumed SAR 9,000.
• All figures are illustrative assumptions used to demonstrate the method.

Step 1: Total identified cost

SAR 45,000 plus SAR 28,000 plus SAR 16,000 plus SAR 22,000 plus SAR 9,000 equals SAR 120,000.

The property requires SAR 120,000 of work on these assumptions, which is 13 per cent of the agreed price.

Step 2: Separating urgent from eventual

Waterproofing and drainage, SAR 44,000, are urgent. Air conditioning and paint, SAR 67,000, are within a few years.

This separation matters in negotiation, because urgent items are harder for a seller to dispute.

Step 3: What a seller typically accepts

Sellers commonly accept adjustment for urgent items and resist adjustment for items reflecting normal ageing.

Presenting both categories separately is more persuasive than presenting one total.

Step 4: A reasoned offer

Requesting SAR 60,000 covers the urgent work plus part of the air conditioning, which is defensible from the report.

An offer traceable to specific findings is difficult to dismiss as opportunistic.

Step 5: The alternative to adjustment

The seller may prefer to complete the urgent work rather than reduce the price.

This can suit both sides, though the buyer then relies on the quality of work they did not supervise. A price adjustment leaves you in control.

Step 6: What happens without inspection

The buyer pays SAR 920,000 and discovers SAR 120,000 of work over the following two years.

The inspection did not create these costs. It made them visible while they could still affect the price.

What changes the answer

• In a competitive market with multiple interested buyers, negotiating room is narrower.
• Where the seller has time pressure, the adjustment achievable is usually larger.
• Items that are cosmetic rather than functional carry less weight in negotiation.
• A seller who has already reduced the price may resist further adjustment regardless of findings.

What the numbers tell you

• Price every finding rather than listing defects without costs.
• Separate urgent work from eventual replacement, since they are argued differently.
• Make the request traceable to the report rather than to a percentage.
• Prefer a price adjustment over the seller arranging work you cannot supervise.

Limits of this example

Every figure above is an illustrative assumption used to show the method, not a quote, valuation or market rate. Costs, rates, fees and regulations change and must be confirmed with the relevant authority, lender or supplier before you commit.

If you are buying a finished property, Domira can inspect it, verify the documentation and price the findings with you before you commit.