Even if the sellers agree to the conditions of the house
inspection, they are never obligated to make any of the repairs.
The only legal means to demand any of it to be corrected is
through the government's construction department, not a house inspection. If
you submit a complaint with your local building department about the seller,
don't expect the sale to go through.
However, the buyer's lender may have specific house
conditions that must be met in order for the loan to be approved, so unless the
seller agrees, the deal may fall through.
To qualify for FHA financing, a home must, for example, meet
certain criteria, such as being in decent enough condition to keep its
residents safe.
Please
just include the most important details.
As a home inspector, I always tell my clients to only recommend
fixes for the most important things on the house inspection report, such as
structural or health-related issues.
A serious foundation fracture, missing roof shingles, or mold
in the basement are all expensive repairs that a buyer won't be able to make.
It's completely fine to ask for cosmetic issues like paint
flaws or missing bathroom caulking to be fixed (though this is normally frowned
upon by sellers and agents), and it's not always granted.
It is also possible to provide a long list of small repairs,
although this is not a good idea. Because you don't want to irritate the seller
by offering a laundry list of cosmetic issues, purchasers should only mention
the most significant issues for the seller to address.
When
Should You Leave a House After It Has Been Inspected?
You have the choice of continuing the contract or cancelling
it if the seller refuses to make all or any of the repairs you want.
You'll be allowed to keep your deposit if you had a house
inspection contingency.
You may also include a "as is" contingency, which
permits you to cancel the contract and receive a refund.
Before you cancel the contract, you should ask the seller for
a credit for the repairs, either as a percentage of the purchase price or as a
cash credit at closing. Even if the seller has no desire to hire and supervise
contractors, they may be prepared to provide financial assistance.
Another reason to avoid handing over a laundry list of minor
or cosmetic products to a dealer is that it will only add to the confusion.
A
Requirement for a Home Inspection
This is a snapshot of a Maryland home inspection contingency
from a Realtor contract I signed a few years ago for a house I purchased. As
you can see, the seller and buyer will have to send each other written notices
every three days in order to negotiate the repairs.
For more information on the complexities of your state and
how the negotiation process works, I recommend speaking with your real estate
agent or a local attorney.
If the seller and buyer cannot agree on repairs, the buyer
can either cancel the deal (and receive a refund of the deposit) or continue
with it.
After
the home inspection, what repairs should you request?
Because there are so many things that may go wrong with a
house, it's important to concentrate on the major issues rather than the minor
ones. Things that compromise the structural integrity of the house or its
capacity to be occupied securely.
It is not a good idea to ask the seller whether you can fix
something yourself in a few minutes, such as fixing a paint flaw or sealing a
bathroom. If you discover something that is hazardous to the home or has the
potential to drastically reduce its value, you should demand that the seller
make the necessary repairs.
You might put a mental monetary value in your recommendation
for repairs. If you think fixing something yourself (or hiring an expert) will
cost more than $100 to $300, you should consult the provider.
You should also consider the cost of the most costly repairs.
If you discover the HVAC system is faulty, you may request a $15,000 HVAC replacement
from the seller. You should generally avoid some of the less expensive item
fixes in this situation.
The following is a list of some of the most typical fixes
that buyers ask sellers to make...
Roof repairs
Water leaks
Structural problems
Rotted wood
HVAC not working
Mold growth
Missing roof shingles
Loose toilets
Defective electrical panel
Summary
of Home Inspection Repairs
A screenshot from a real home inspection is shown below.
If you read it carefully, you'll notice that some of the
details are small, and I simply include them in the report to guarantee that my
client is happy. Because the issues are minor, I wouldn't include "missing
stopper" and "loose mailbox post" in a repair request to the
vendor.
The most serious issue in this home inspection summary is
item #32, which states that the dwelling has a damaged polybutylene water line.
This plumbing has been outlawed because it leaks and is a major concern; it may
need to be totally replaced, which may cost $20,000 or more.
What
Are Sellers' Options If Repairs Are Rejected?
If a seller refuses to make repairs, there are a few choices
available to him or her. The most usual course of action is to reduce the
purchasing price.
Giving a cash credit against the home's buying price is
another possibility. You may even include important household items like
furniture, a pool table, or an outside grill in the deal.
If a buyer is concerned about future repairs, the seller may
be able to persuade them by offering to cover the first 12-24 months of a house
warranty.
Buyers should be aware that warranties do not cover all
repairs and should read the warranty carefully before signing it.
If you're a home seller, you might be interested in my post
about whether or not sellers should attend the house inspection.
Last
Thoughts
To summarize, dealers are not obligated to do any repairs.
Having a home inspection contingency provides you more negotiating power when
it comes to asking for repairs or a credit off the purchase price.
If the house was bought "as is," don't bother
pressing the seller for repairs; instead, walk away or accept the current
state.
As I tell many of my home inspection clients, if you want to
improve your chances of getting the seller to address the most serious and
costly issues, ask for them first.
I have hundreds of problems to solve in my house inspection
reports (large and small). You will very probably turn off the customer if you
request all of these items. Make a list of the top 10-20 problems you'd like
the vendor to solve.