Whether you are selling your home as For Sale By Owner or using a Realtor, it is very common for home buyers to make a contract contingent upon a satisfactory Home Inspection so that they can determine the condition of the property’s major systems and structure. Usually the inspection is conducted within a pre-determined time frame and if the time constraint is not met, the home inspection contingency is automatically removed. The inspection is usually at the buyer’s expense and can range anywhere from $200 – $500. Find a Home Inspector here.

After the inspection, the buyer has a number of options… he can (1) remove the contingency clause. Or if he is not satisfied with the condition of the property he can (2) ask for repairs to be completed by the seller or (3) merely walk away from the contract and have his earnest money deposit returned to him. Bottom line, the home inspection is a re-negotiating tool for the buyer.
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A friend of mine recently sold their beautiful home which resides in a wonderful neighborhood and on an amazing lot in Plano Texas. Unfortunately it was built 20 years ago and looked like it. Meaning the appliances, wallpaper, popcorn (acoustic) ceilings and brass hardware dated the home. The carpets needed to be replaced and the paint needed touching up.

If you are in the same situation, you have two options here!

1. Reduce the price and sell the home “as is”.

This scenario gives the new buyers an opportunity to update the home how they see fit. Sounds pretty tempting for both parties, right?

The problem with this scenario is simple. Though the idea of getting a great price and updating the home with your choice of carpet, paint colors and appliances may sound appealing, many customers will back out half-way through the offer process. Once the reality of updating a home sets in, it can be pretty overwhelming and inconvenient if you have to live there while carpets are being ripped out and walls are being painted. Chances are your home will be on the market for a long time before the right buyer with enough cash flow comes along. Maybe that’s okay if you’re not in a hurry to move but if you do have to move then you may be paying two mortgages for a while.
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