Home Inspections and Requested Repairs

Blog Post Image
Real Estate

In most cases buyers will want a home inspection as a contingency of their offer to purchase a home. As a Realtor if I'm representing the buyer I always recommend they do this. A home inspection will uncover major issues that need repair (like a roof) and minor things that need fixed. So if you're the seller and a list of requested repairs is presented to you what should you do? 

1) You can agree to fix the problem, no matter the expense. 

2) You can agree to fix any problem that's a safety issue or that could become a potential legal issue. Examples of this are mold, improper wiring or radon gas.  You can decline minor repairs such as filling in and painting nail holes where pictures were hung.

3) You can refuse to fix anything, but risk losing the buyer. Keep in mind if it's a code or safety issue you'll have to declare it on the sellers disclosure sheet. If it's a major problem it could impact the homes value with future buyers

4) You can always request the buyer to meet you halfway by splitting the cost of the repair, or paying more for the home to help compensate for a major repair. An example would be a new air conditioner or roof.

5) You can offer to lower the price of the home to cover the cost of the repair or offer a closing credit to the buyer to pay for the repair without lowering the purchase price agreed upon. If they choose this the buyer can fix the problem to their liking.

6) You can offer to fix the most serious problems if the buyer will waive the repair of minor issues. 

Sellers should keep in mind that FHA, VA and other government loans have stricter requirements for home safety and some repairs could be required to close the loan. If you as the seller choose to fix everything the deal is agreed upon. If you choose any of the other options you're making a counter offer. The buyer then has the right to walk away, accept, or counter with another offer.