How to Negotiate From Contract Through Inspection

Congratulations! You've accepted an offer on your home. But here's what many sellers don't realize: Your home is not sold until settlement day and it’s crucial to stay cool, calm and collected during the under contract phase, because that is when a lot of negotiating can happen that will make or break the sale.

Selling a home is an emotional experience for many of us. Your home is part of who you are and where you’ve been at a certain stage of your life. But first and foremost, selling a home is actually a business transaction with a buyer and that’s easy to forget in the heat of negotiations.

Don’t forget that both you AND the buyer want to close the deal. So don’t have a “winner take all” mindset but be willing to compromise when necessary while still looking out for your best interests.

Why the Under-Contract Phase Is Critical

Strategic negotiation during the under-contract phase is just as important as initial offer evaluation as multiple opportunities exist for renegotiation or the deal to fall apart.

What happens after contract is signed by both parties involved:

• Attorney review (3 business days in NJ)
• Home inspection and negotiations (up to 15 days)
• Appraisal
• Final walkthrough
• Closing

The stakes:

• Your home is off market during this period
• If the deal fails, you lose time and momentum
• Market conditions can shift while you're under contract
• Back-on-market listings raise red flags for future buyers

Understanding New Jersey's Inspection Timeline

New Jersey real estate contracts have specific timelines that govern the inspection process. Understanding these is crucial for protecting yourself.

The Standard Timeline:

Inspection Period(10 Calendar Days): After attorney review ends, the buyer has 10 calendar days to complete their inspection. This deadline is called the "Completion Date".

5 Business Days: The buyer then has 5 business days after the Completion Date to either:

• Deliver the inspection report + written notice of cancellation of the contract, OR
• Deliver the inspection report + written repair requests

If the buyer does nothing, the inspection contingency terminates and the contract moves forward as-is.

Total time: Up to 15 days where your home is off the market and the deal could fall apart.

Why This Timeline Matters:

Let me illustrate this with an example.

In one of our brokerage seller represented deals, we had the buyer’s attorney extend the inspection period by additional 10 days beyond the default 10 days on the contract. The inspection itself happened just a few days later, but the buyer waited until the 20th day to request repairs.

To make matters worse, they presented a roof estimate for $27,000, while our seller had their own estimate of just $7,000.

The seller was understandably frustrated, especially since their home was effectively off the market for three weeks. In some markets, that’s enough time for market conditions to shift, costing sellers valuable opportunities.

👉 Takeaway for Sellers: If you agree to extend the inspection period, also require the buyer to submit their repair requests within 24–48 hours of the inspection itself. This keeps negotiations on track and prevents your home from being tied up too long.

Don't let buyers use extended timelines to shop around for worst-case estimates or wait to see if better properties come on the market.

Here are some tips for negotiating once your home is under contract:

1. Determine the Buyer’s Motivation and Timing

Why does the buyer want your home?

• Relocating for a job (time-sensitive, highly motivated)
• Expecting a baby (emotional, wants to close quickly)
• Selling their own home (timeline pressure)

These factors affect how quickly they want (or need) to move forward—and can give you leverage in negotiations.

2. Have a Positive Outlook on Contingncies

Contingencies—such as inspection results or financing approval—are part of nearly every real estate deal. Rather than resisting them, view contingencies as an opportunity to move the sale forward.

Offer to fix key items before closing.

Provide a credit so the buyer can choose their own contractor.

Negotiate a fair price reduction to reflect the needed work.

🚩 That said, avoid high-risk contingencies like waiting for the buyer to sell their existing home or accepting an offer without approved financing.

3. Sweeten the Deal If It Gets You What You Need

Sometimes concessions seal the deal. It doesn’t always have to be price—you might offer favorable financing terms, cover closing costs, or leave behind something the buyer values. Small concessions can build goodwill and keep the negotiation moving toward settlement.

👉 So you can see now there is SO MUCH that goes into making sure everyone actually gets to the settlement table. Most of what happens is behind the scenes and that’s a good thing—that means everything is going smoothly. But, if not managed properly, things go can haywire quickly. That’s why I like to make sure my clients know what’s going on at all times, so we can do everything we can to get everyone to the settlement table on time and with smiles on their faces.