Bad House Inspection for Sellers and Buyers: Common Causes and Reasonable Repairs.

Almost all buyers request a home inspection when submitting an offer on a home. And many inspections request repairs or concessions once they are received back.

As a seller it is important to prepare yourself for the home inspection process and to know how to negotiate after a home inspection if it is not some very good news. Ultimately 15 percent of sellers who went through the sale were due to buyer support after the inspection report.

FAQ: Home Inspection for Real Estate 

What is a Home Inspection? 

Performed by a licensed professional home inspector a home inspection is a comprehensive review of a home that is for sale based on a visual evaluation of the home systems and components. The result is a home inspection report which details the current state of the home and alerts buyers to any major issues. Most buyers request a home inspection when purchasing a home so that they can avoid spending thousands (or more) in unexpected repairs after closing and protect themselves from overpaying for the property.

What is a home inspection report contingency? Is this common?

A home inspection contingency offer is an addendum to the contract that allows the buyer to conduct an inspection and then exit the deal if dissatisfied with the conclusion. Sometimes (and most likely in the most competitive sellers market) buyers may waive their right to inspection to make their appeal to the seller more attractive.

What is involved in home inspection contingency? 

The language in each contract varies but usually states that the inspection must be satisfactory to the purchaser and if it is not so they may reapply the terms of the deal or close the deal and any you can get the earnest money back. If you have questions about the terms of the home inspection that your buyer is offering ask your real estate agent - before signing.

Who pays for a home inspection report?

Typically the buyer pays for their own inspection and may use a licensed home inspector of their choosing. However sellers who may be concerned about what can be found in an inspection sometimes choose to pay for their own pre inspection.

Depending on the results you can price your home accordingly and you will not be surprised by the results of your buyer inspection. Note that any problems encountered in your pre-inspection will have to be disclosed to your buyer.

How long does the buyer have to inspect the house? 

The timeline depends on the market and the contract but it is standard for both parties to accept the deal within 5 to 10 working days.

How long does a buyer have to request a home inspection repair? 

Again, it depends on the market and your specific contract. The contract usually involves both conducting the inspection within the permitted 5 to 10 business days and requesting any repairs in writing. In a buyer market sometimes have more time but in a seller market they usually have to act quickly.

Should vendors participate in home inspections?

If you are selling your home on your own then it makes sense for you to participate in a home inspection. If you are working with an agent it is best to have them present on your behalf.

Top reasons home inspections fail

When the buyers inspection report comes back with a long list of repairs sellers are often caught in surprise even if the house is not too old. Here are some of the most common key issues that come up during inspection.

• Roof Issues: Roofing problems can range from a few missing shingles to leaks or soft spots or even a complete replacement of the roof if the roof is old or failing.
• Electrical problems: The most common electrical issues include wiring that is not up to code wiring or improperly wired electrical panels.
• Plumbing Issues: Leak pipes (and resulting water damage) and failed water heaters and sewer system problems are the most expensive. 
• Foundation problems: Cracking foundations settling and basement water damage can be corrected to a great extent. 
• Termites and Pests: Termite damage as well as the presence of other pest can be a major red flag for buyers. 
• Mold: Mold issues are a common problem especially in wet or humid climates and repairs can be extensive. 
• Window and door issues: Failing window seals, windows and doors that do not open and close properly or broken pans are usually found with inspectors.
• Asbestos or lead paint: This is a serious issue and if you are selling an old house you should be especially cautious. Many contracts have specific requirements related to asbestos and lead paint so be sure to disclose everything you know.
• Chimney damage: Old chimneys can be a safety hazard and they often need to be removed when not in working order.

Although a bad home inspection report does not state what any seller is expecting the good news about the process is that as a result of the inspection the buyer knows what they are doing and asks for repairs or to walk. Have a chance of Away both actions that protect the seller from future liability.

Buyer Action: What Happens After Home Inspection?

Depending on the terms of your contract the buyer can do one of three things after receiving an inspection report at your home:

• REQUEST REPAIR: The buyer may request that the seller complete a list of requested repairs as a condition for the sale to proceed.
• Ask for Credit: The buyer can request a credit (also known as a concession) in an amount that is sufficient to cover the repair. They request a dollar amount that they want back as a closing credit which did not change the purchase price wish but would reduce your net profits. This is a common option for buyers to repair on their own terms or if sellers are refusing repairs.
• Out of Deal: Worst case the buyer can usually exit the deal as a result of poor inspection. Note that shoppers who are getting cold feet will sometimes use the inspection as an excuse to do so even if the report only finds minor issues.

Questions sellers should ask themselves (and their agents) after a home inspection

Which repair is mandatory? You want to prioritize repairs that are a safety concern or legal issue.

How much will the repair cost? If you are looking for repairs, you want to get at least three quotes from reputable contractors.

Do you have to hire a professional or can you do the repair work? It depends on your buyers request and type of repair and your own skill level.

If you do not choose to repair before closing how much credit will you have to give? The amount and type of offer you provide to the buyer varies depending on the level of repair, but you are in good company 83 percent of sellers make some sort of concession to close the deal.

How can you negotiate a repair? Your real estate agent is a great resource here as they should have negotiation strategies that help buyers and sellers meet in between repair requests and come up with the appropriate solution. 

Should you bother repairing too? In some cases it makes sense to consult with your agent and weigh the pros and cons of repair costs enabling the buyer to move in and relist your home.

Poor home inspection support for sellers

Do not panic if you receive a poor home inspection. Proper buyers will understand that no house is perfect not even new construction. And remember they want to buy your house. Therefore they should pursue the deal that you do.

You have a few options and you should choose your course based on what makes the most sense for you financially and for your local real estate market. Here are some options:

Repair: If you feel that repair requests are reasonable and you can afford to fulfill them this is usually the best course of action. If possible you want to keep the deal moving forward because if the deal falls through you have to disclose the findings of this first report if you relist your home and you can reduce the risk.

Give a Credit: As we stated above buyers are often liable for repair credits. But even if you are not completing the repair you still want to get a quote from a contractor so you do not give any credit that is too much. 

Offer a one-year home warranty: Buying a home warranty can be a good olive branch for the buyer. This will only cost you a few hundred dollars and it gives the buyer peace of mind if any issues come in the first year after closing. It is particularly appealing for inspection findings that are not necessarily failed items but aging systems that will have to change over the next few years.

Barter in other ways: You can always offer barter with other items such as furniture that were not originally included but buyers want or cannot plan on when you leave.

Home Inspection Problems: What to Do if You Don't Trust the Inspection Report.

Knowing what to do if a home inspection goes bad can be difficult. Buyers choose their home inspector and sometimes a seller will feel that the report is false or exaggerated

Despite the inspection results home inspectors should not advise buyers whether they should proceed with the purchase. Their job is simply to inspect and report their findings and then let the buyer come to their conclusion.

Home inspectors have been sued by sellers who believe that a deal fallout was the home inspector fault and their misreporting. Whether or not you are able to sue the inspector depends on the laws of the state. However it may be difficult for sellers to challenge inspection as a third party as the relationship in question is between the buyer and the inspector.

What to do if the buyer retreats 

Remember if a buyer comes back and you relist you will have to disclose everything you found in the report to future buyers so the best thing to do is to go ahead and complete the repair. Do and catch from the documentation your contractor who proves the work was done.

You can also add a repair mention to your listing details. Buyers and their agents will know when your home is coming back to market under contract and why coming forward and buyers are aware that all issues are fixed can be a good strategy.

General seller repair after home inspection

It is important to distinguish appropriate buyer requests from inappropriate ones before you go too far to arrange for the seller to repair after the home inspection. Buyers should not expect the house to be defective.

Reasonable request after home inspection:-

• The major electrical problems are security or code issues.
• Plumbing, drainage, sewer, septic, or water issues (or well water issues, if applicable). 
• Mold or water damage.
• HVAC problems that affect the comfort of the home.
• Roof shingles or missing shingles.
• Termite and Pest Damage.
• Building Code Violation.
• Lead paint or asbestos.
• Elevated radon levels (a common issue in homes with basements).
• Skip the conversation with home inspection problems and SuGanta Realty Services llp proposals.

After reviewing some basic information about your home we will conduct an individual evaluation and offer you an offer to buy your home in cash. The offer will be responsible for any necessary repairs or updates but we will do all the work so you can close quickly.

Lorem ipsum dolor sit amet consectetur, adipisicing elit. Laboriosam, voluptatum! Dolor quo, perspiciatis voluptas totam

Lorem ipsum dolor sit amet consectetur, adipisicing elit. Laboriosam, voluptatum! Dolor quo, perspiciatis voluptas totam