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.
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.
Tags: home inspection, Repairs, Seller Negotiations
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