Repairs After Home Inspection
How to negotiate the house price after a home inspection
When negotiating the home price, always think big picture. Do you anticipate renovating any aspects of the home in the future? Will the defects that appeared in the inspection report be obsolete after the renovations?
It is also important to weigh the gravity of the repairs. If the repairs are fairly minimal, such as replacing some cracked bathroom tiles, etc., the buyer can request that the seller make the repairs themselves. If the repairs are significant, will a monetary credit toward closing costs suffice, or is a reduced price necessary? Unless the sellers are desperate and the changes are substantial, it may be far more difficult to get the seller to agree to a price reduction vs. credits.
How to request repairs after a home inspection?
Understandably, a seller wants to spend as little money as they can on repairs and sell their home in the shortest timeframe possible (which makes sense). Knowing that, if the inspection report reveals significant issues, the buyer is typically better off asking for a credit instead of asking the seller to take care of the repairs themselves. A credit would help bring down closing costs for the buyer at closing, alleviating the cost of making major repairs to the home.
It is advised that buyers take credits rather than let the seller take care of the repairs. Because the seller is understandably in the midst of moving and wants to expedite the process as much as possible, they may not do careful due diligence in selecting a contractor to perform the work. Or, if they choose the contractor the buyer requests, they may not oversee the work and will be unaware of the contractor failing to repair certain defects. The buyer will have to live in the home, not the seller, so the seller may be less invested in ensuring the work is completed properly. If the buyer has additional funds to spend on repairs, they can hire the contractor they want to work with and oversee the work.
What are the common repairs typically needed after a home inspection?
- Electrical: Frayed wiring, wiring that’s not up to code, or improperly wired electrical panels are some of the most common electrical issues found during a home inspection.
- Plumbing: Water damage, leaking pipes, sewer system problems, and failing water heaters are some of the common plumbing issues found on home inspection reports.
- Foundation: For the few homes with basements in North Carolina, basement water damage is common. Cracked foundations are also common in home inspections.
- Mold: Given North Carolina’s humid weather, mold tends to be a common problem
- Roofing: When it comes to the roof, problems can range from missing shingles to major leaks, which may require a full roof replacement.
- Termites and pests: While some pests are impossible to keep at bay, even in the cleanest houses, termites and vermin are a major red flag for buyers.
- Windows and doors: Doors that don’t open and close properly or windows with broken panes and failing window seals are common – particularly in older homes.
- Asbestos: Asbestos or lead paint can be extremely hazardous and should be taken very seriously if it is found in an inspection report.
- Chimneys: Older chimneys that are defective may need to be removed if they present a significant safety hazard.
Who pays for repairs after the home inspection?
Repairs can either be paid by the buyer, seller, or both – every transaction is unique. Depending on the circumstances, the buyer may ask that the seller take care of significant safety hazards and other costly fixes. If the seller refuses, the buyer may step away from the deal altogether.
References
Fitzpatrick, R. (2022, February 2). 7 Tips: Negotiating Repairs After a Home Inspection. Retrieved from Raleigh Realty: https://www.raleighrealtyhomes.com/blog/negotiating-repairs-after-home-inspection.html