Now that you have received the home inspection report, it's time to act. After a Home Inspector completes their Home Inspection Report they typically send it to the Buyer. Deficiencies discovered during the inspection may be Major, Minor, or Cosmetic. When a home inspection report reveals issues, the buyer and seller have several options. Here’s a breakdown of steps each party can take:
For Buyers:
Review the Report Thoroughly: Understand the severity and scope of the issues identified.
Contact your Home Inspector: Ask for clarification on any questions you may have.
Consult with Your Agent: Discuss the findings with your real estate agent to determine the best course of action.
Request Repairs: Ask the seller to fix specific issues before closing.
Negotiate a Price Reduction: Instead of repairs, negotiate a lower purchase price to account for the cost of repairs.
Request a Credit: Ask for credit to cover the cost of repairs.
Accept the Property As-Is: If the issues are minor or cosmetic and you are willing to take care of them after closing, proceed without requesting any changes to the agreement.
Walk Away from Buying: If the issues are too significant and cannot be resolved between the parties, you may choose to back out of the purchase, depending on the terms of your agreement.
For Sellers:
1. Review the Report: Understand the issues and their impact on the sale of your property.
2. Consult with your agent: Discuss the findings and possible responses with your agent or attorney.
3. Decide on Repairs: Determine which repairs you are willing to make. Focus on the major issues that could affect the sale now or potential sale in the future.
4. Offer a Credit: Instead of making repairs, offer a credit to cover the cost of repairs.
5. Negotiate: Be prepared to negotiate with the Buyer to reach a mutually acceptable solution.
6. Decide not to Sell: Depending on your agreement, you may decide not to make repairs or sell to the Buyer. However, ensure you disclose issues to any future potential buyers.
Common Negotiating Points:
Cosmetic issues are typically less critical and may not be worth negotiating. Depending on what they are, make the requested repairs. Sometimes offering a credit is more convenient for both the Buyer and Seller, allowing the Buyer to take care of repairs after closing. For both parties, clear communication and willingness to negotiate can lead to a resolution satisfactory for both parties.
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