You should probably have a third-party home inspection if you’re buying a new house. If the house gets a clean bill of health, you’ll know you’re buying a safe, well-maintained home and making a sensible investment.
What happens, though, if the inspection reveals a flaw? What are your options, and how do you proceed (or back out) if the outcomes aren’t as expected?
The answer is contingent on your sales contract, as well as the required repairs, the seller’s willingness to compromise, and several other considerations. If you find yourself negotiating repairs after a house inspection, here’s what you should do.
A home inspection might help you spot flaws in a house you’re thinking about buying. If the inspection identifies faults or repairs are required, you may be able to work out a deal with the seller to resolve them. To make up for the difference, you might ask for credits toward your closing costs.
You may be able to pull out of the transaction entirely if you have a home inspection contingency in place and the faults discovered by your inspector are deal-breakers. If you opt to pursue it that way, you should be able to get your entire money returned.
Things you can do if some problems are revealed during inspection:
- The seller can be asked to do the necessary repairs
- Ask for credits toward your closing costs
- The seller can be asked to reduce the price according to the repairs
- Back out of the transaction (if you have an inspection contingency in place)
- Move forward with the deal
Repair credits are usually a good solution for both parties. Because of the effort and time, they might add to the sales process, sellers are often hesitant to finish repairs. Buyers may also opt to undertake the repairs themselves to ensure that the project meets their expectations.
To begin negotiating for repairs or credits, receive an estimate for the cost of the repairs from a local contractor or construction professional. Negotiations should be handled by your real estate agent if you’re dealing with one. Make sure your agent gets a copy of the inspection report so they can use it as leverage when dealing with the listing agency and the seller.
In general, sellers may be ready to compromise on severe faults like a leaking roof, a fractured foundation, electrical issues, or other elements that are a safety danger or need a large repair bill. That’s in their best interests, because if the house has structural flaws, major safety dangers, or building code violations, your lender may refuse to approve your loan. 1
Sellers are less willing to yield on cosmetic or superficial issues that have little bearing on the house’s overall strength. If the home has been on the market for a while or the local housing market is weak, they may be more flexible.
Before you start negotiating, think about the following:
- The state of the housing market in your area
- Your wish to live in a house
- The scope of the repairs and their cost
- The seriousness of the issue
- Your refurbishment and remodeling ideas for the future
- Your financial situation
- The length of time the property has been on the market.
- The history and age of the house
If a buyer’s home inspection uncovers flaws while you’re selling your property, you still have options-
- Reduce the cost
- Credits for closing costs are available.
- Accept certain repairs as a condition of your membership.
- Barter with household appliances or other stuff.
You could also choose to do nothing. Keep in mind, though, that the buyer may be allowed to back out of the contract depending on the circumstances. You can re-list the home or go back to a backup offer if this happens, but you may be legally obligated to disclose any faults discovered during the home inspection to any subsequent buyers.
Post-Purchase Home Inspections examine a home’s systems, including heating and air conditioning, interior plumbing, the roof, the foundation, and other structural components. The inspector will examine the parts of the house that are easily accessible. The home inspector will prepare a report for you to study when the examination is completed.
The cost of your home inspection is determined by your location and the size of your home.
The house inspection must be performed by a professional, qualified home inspector. The inspector should be unbiased and impartial.
All the questions related to home inspection are answered here. If you are still looking for more, book an appointment at Home Inspector Ottawa. We will help you in sorting all your issues and help you in every way possible. Call now.