Step 1: Know Your Deadlines
The Colorado Real Estate Commission contract establishes specific deadlines that govern the inspection process. Missing these deadlines can affect your rights.
Inspection Objection Deadline
This deadline (typically 7-10 days after contract acceptance) is when you must submit written notice of any inspection findings you want the seller to address. Your agent will help you prepare and submit this notice using the proper forms.
After this deadline passes, you've generally accepted the property's condition as inspected. Discoveries after this point don't typically give you negotiating leverage.
Inspection Resolution Deadline
A second deadline (typically 3-5 days after the objection deadline) establishes when inspection negotiations must conclude. If you and the seller can't agree on resolution, either party can terminate under the inspection provisions.
Working Within Timelines
These deadlines create urgency. Schedule your inspection early in the period, arrange specialist evaluations immediately if needed, and get contractor estimates quickly. Waiting until the last day leaves no room for complications.
Step 2: Review the Full Report
Inspection reports often run 40-60+ pages. A thorough review is essential for informed decision-making.
Understanding Report Organization
Most reports organize findings by category:
- Safety hazards: Items requiring immediate attention
- Significant defects: Major system or structural issues
- Improvement recommendations: Suggested updates
- Maintenance items: Normal upkeep needs
- Informational notes: Things to be aware of
Focus first on safety hazards and significant defects—these typically drive negotiations.
Evaluating Denver-Specific Findings
Some findings need contextual understanding:
- Foundation cracks: Minor cracks are universal in Denver. Wide cracks (over 1/4 inch), horizontal cracks, or evidence of active movement are more concerning.
- Radon above 4 pCi/L: Common in Denver and addressable. Mitigation is standard practice, not a deal-breaker.
- Hail damage: Evaluate whether it's recent (actionable for insurance) or accumulated over time.
Step 3: Arrange Specialist Evaluations
When the inspection recommends further evaluation, arrange these promptly given your deadlines.
Structural Engineer
For foundation concerns, structural engineer evaluation ($300-500) provides expert assessment. This is particularly important in Denver given the expansive soil issues. The engineer can distinguish between normal settlement and problematic movement, and provide repair recommendations if needed.
Roofing Contractor
If hail damage is suspected, a roofing contractor can evaluate severity and provide replacement estimates. Some roofers offer free assessments; others charge $100-200 for detailed reports. Insurance claim potential depends on damage extent and policy terms.
Sewer Line Scope
If not included in your inspection and the home is older, consider adding this now. Cost is $200-400, and findings significantly affect negotiation if problems are discovered.
Other Specialists
Depending on findings, you might need:
- Electrician for panel or wiring concerns
- HVAC technician for detailed system evaluation
- Radon professional if elevated levels require mitigation design
Step 4: Get Cost Estimates
Negotiation works best with documented repair costs rather than vague concerns.
Obtaining Written Estimates
For significant items, get written estimates from qualified contractors. Aim for at least two estimates on major items. Be clear that you're a buyer seeking estimates for negotiation purposes.
Common Denver Repair Costs
For reference, typical Denver repair costs:
- Radon mitigation: $800-1,500
- Sewer line replacement: $8,000-15,000
- Foundation pier repair: $400-600 per pier
- Electrical panel replacement: $2,500-4,500
- Roof replacement: $8,000-15,000 (varies by size)
- HVAC replacement: $6,000-12,000
Step 5: Prepare Your Inspection Objection
Work with your agent to develop an appropriate objection notice.
What to Include
Focus objections on:
- Safety hazards requiring correction
- Significant defects that weren't disclosed or expected
- Items that affect financing (lender requirements)
- Major system issues near end of life
Avoid including:
- Cosmetic items or personal preferences
- Normal maintenance for the home's age
- Items visible before inspection (you knew the carpet was worn)
Repairs vs. Credits
You can request seller repairs or closing credits. Credits give you control over work quality and contractor selection. Repairs ensure work is done before closing but you have less control.
For significant items in Denver (foundation work, radon mitigation, sewer replacement), credits are often preferable to ensure proper completion.
Market Considerations
Denver's market conditions affect negotiating leverage. In competitive markets, extensive requests may result in sellers choosing other buyers. In softer markets, buyers have more room to negotiate. Your agent can advise on current conditions.
Step 6: Navigate Resolution
After submitting your objection, the seller responds and negotiation proceeds.
Possible Outcomes
Seller agrees: Amendment documents are signed, and you proceed toward closing.
Seller counters: They agree to some items, reject others, or offer different amounts. You evaluate and respond.
Seller refuses: You decide whether to proceed as-is, continue negotiating, or terminate.
Termination Rights
If you can't reach agreement before the resolution deadline, either party can terminate under the inspection provisions. In most cases, the buyer's earnest money is returned. Understanding this exit option helps you negotiate from a position of clarity.
When Walking Away Makes Sense
Consider terminating if:
- Major issues exceed what the property value can absorb
- Sellers refuse to address significant safety hazards
- Specialist evaluations reveal problems beyond initial inspection findings
- Your confidence in the property has fundamentally changed
Step 7: Document and Proceed
Once negotiations conclude, maintain documentation:
- Keep all inspection reports and specialist evaluations
- Save repair estimates and contractor communications
- Document negotiation correspondence
- Retain copies of any amendments to the contract
This documentation supports future warranty claims, insurance needs, and potential resale.