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.

You, the seller, also have options. After being notified of an unsatisfactory report, you can refuse further negotiations and return the earnest money deposit, put the house back on the market and wait for another buyer. Or, negotiate the repairs asked for in the inspection report. You can not only negotiate which repairs are to be done, but who is to do them. You’ll want to spell out whether you will hire a licensed contractor or if the repair is something you can do your self.

It is not unreasonable for you to ask the buyer for a few days to talk with contractors and get estimates for the work that needs to be done. You may also want to consider giving the buyer a dollar amount at closing for them to get the repairs made after the closing rather than you doing the work. This is certainly less hassle and the buyer can make sure things are done exactly the way the home seller wants it done.

All agreed upon repairs must be completed prior to closing. The buyer will have a final walk-through, determining all repairs have been made. The homebuyer may ask to bring their home inspector to this final inspection.

One important point to remember…the inspector is working for the buyer. They are being paid to be nitpicky and will point out minor, even cosmetic repairs. Don’t take offense and stay focused on the major issues that should be repaired.

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.

I would only recommend this scenario if you do not have the money or the means to update the home before selling.

2. Get that home equity loan you’ve been talking about for so long and make the appropriate updates to sell your home quickly.

If you have the money or the means to tackle this scenario, then I’d highly advise it. It’s not as hard as it sounds and can cost a lot less than you think. You may be able to pay for all of the updates for only half of the discount you would have given. Plus your home will sell much faster saving your money and sleepless nights.

Do not use a single source to get all of the work done or you will be paying an added premium. Find out who does the actual labor and have them do the work avoiding the middleman. Find a General Contractor in your area. Get four free quotes in 24 Hours from Renovation Experts.

In case you are interested in knowing the outcome of my friend’s home, after 3 months on the market as a fixer-upper and 2 on-the-fence buyers, they made the updates and their home sold in 2 weeks for their asking price. Realtors love to show move-in ready homes and homebuyers love to see them. Good luck in your home selling adventure!

Above article provided by Texas Home Central