How to Handle a Bad Inspection
Posted On: Jan 18, 2017
You have a seller on the line, or you have your heart set on your dream home – and then you get hit with a less-than-favorable inspection report.
First of all, don’t panic. Although not ideal, it may not be as bad as you think. Stay calm and take the following steps.
1. Take some time and think about how much you are either willing to spend to fix the damages, or if you are buying, how much you have left over in the budget to address concerns. Remember to take time and money into consideration. The most common home inspection fails include roofing issues, not-up-to-code electrical systems, plumbing, foundation problems, termite damage, mold issues, chimney damage, or broken windows and doors.
2. Figure out how much money repairs will cost. It is always best to get at least three bids from different vendors. Keep in mind that depending on the repairs, you may have to forego completing repairs yourself or hiring an unlicensed handyman. Unfortunately, the most common home inspection fails tend to be fairly expensive fixes.
3. After you have a reliable estimate, talk to your real estate professional and discuss the next steps. There are a few options for the seller and the buyer. As a seller, you have the option to complete the repairs using your own funds, try to negotiate with the buyer to share the cost of the repairs, or simply drop the selling price. Buyers can ask seller for a credit upon closing to deal with post-closing repairs. It is important to keep in mind that any requests or responses can majorly impact the outcome of the transaction, so be sure to keep your end goal top of mind.