When contracting for the purchase of a home, the contract can include a home inspection as a contingency. A home inspection gives the buyer time and opportunity to inspect the home before closing. When the inspection finds that, there are material defects you will have the chance to negotiate their repair with the seller. .Following are home inspection tips for buyers about who fixes what when inspections turn up defects that were not previously disclosed to you.
Can you attend your inspection?
Of course, you can, you’re paying for it, and reputable inspectors will want you to be there. This will give you a chance to get to know the home intimately and see things that weren’t evident on your viewing prior to your contract. You may find issues with the home that were undisclosed on the “sellers disclosure statement” that may require negotiation about their repair, due to their cost.
Items with material value, such as heating and air systems, appliances, faulty electrical or plumbing systems, should all be functioning properly and in good repair when you are purchasing a home. Windows and doors should be tight and free of air infiltration when closed. Foundation cracks, from settling are common but gaping gaps in the foundation can be the sign of a big problem with the home. Water settling in the yard or a seeping septic system drain field are red flags. If the inspector finds a problem with any of the above items or anything else it will be shown to you when they find it.
Do you have your inspection report?
Once the inspection is complete, the home inspector will produce a report. This can take a few days, but make sure you get it as soon as possible and go over it carefully with the home inspector because the clock is ticking. Although they can’t tell you how to proceed, they can tell you if there are defects that may cost you thousands of dollars in the near future. They may find a house that is in perfect order but if they don’t you will have what you need to negotiate repairs with the seller.
How do you proceed if you find defects?
A walk through on a new home is one thing. One would expect everything to be in order and if not, they would expect that it be corrected before closing. When buying a used home, even one that has been occupied for a short period, there will be cosmetic defects. What you want to find in a home inspection are material defects. Ones that will be costly to repair, which can be a financial undertaking that may be difficult since you’ve just put down thousands of dollars for the homes purchase.
Don’t nitpick when going over the inspection report and focus on material defects not those that are cosmetic. If you don’t like the color of a room, it’s easily remedied. However issues with electrical, plumbing, air penetration, leaky roofs, cracked foundations, heating and air systems may require professional attention that can be very costly if the defect is extensive. These are all issues you should be willing to dispute because they reduce the immediate value of the home and a willing seller will need to decide how to proceed if you find major defects.
So, who fixes what?
After attending the home inspection and going over the inspection report, you can address the issues with the seller. Four things can happen at this point.
- The seller can make the necessary repairs.
- The seller can give you a credit for the affected system or issue.
- You can agree to be responsible for the repairs.
- You don’t come to a meeting of the minds and you walk away from the sale.
This is the point where further haggling will be necessary if you really want the house. Sellers will be more inclined to repair electrical panels that are a safety hazard, plumbing that is evidently leaking or an air conditioner that is blowing warm air than they will be to paint the walls or replace kitchen counters. You will need to choose what is most important to you and not submit a laundry list of repair items that overwhelms and insults the seller.
How motivated is the seller?
A motivated seller will be more inclined to either give you a credit for repairs that need to be done, or to have the items you find repaired prior to close. However, a seller who with back-up offers on their home will not go as far to make repairs when negotiating repairs based on the home inspection. At this point you will need to ask yourself how important the purchase is to you and if you can live with the issues that have been brought forth in the homeowner’s inspection.
Are you ready?
Though not a requirement, unless you are getting an FHA loan, home inspections are highly recommended and home inspection tips for buyers gives you the information you need when you reach the inspection stage of your home purchase. Your realtor is also a good source of information and can be an asset when negotiating who fixes what when defects appear in inspection reports. They will also have a list of reputable home inspectors who can get to the job as soon as you know you have a contract.
Home inspections are time sensitive and expediency will be required if you want to get the inspection completed and allow time for repairs to be performed. Whatever you do when buying a home, don’t skip the inspection. The little you spend can save you thousands on the purchase of your home.
2 Point Highlight
A home inspection gives the buyer time and opportunity to inspect the home before closing.
A home inspection gives the buyer time and opportunity to inspect the home before closing.
