No home is perfect. You can even find small blemishes in a brand new construction home where the wall has been scuffed by construction. When you are selling a home, the home inspection is a negotiation point between buyers and sellers. Sellers can be caught off guard by the items a buyer might request to be repaired and wonder if they really need to repair the item. There are some things that may come to light during a home inspection that need to be addressed by the seller while other things may not need to be. Let’s learn the difference.
What does a home inspection tell sellers?
Once your home is under contract, the buyers will do a home inspection to learn more about the condition of your home. The job of the home inspector is to identify any potential issues the home has and share that with the buyers. These issues can include things that are not in code with local building expectations, structural or safety concerns, and cosmetic issues. Afterwards, the buyers might create a list of requested repairs that they would like to negotiate with the seller.
No matter the home, home inspectors are going to find things to improve; it’s their job. As a seller you are not obligated to fix all of the items on the home inspection request list. Working with your Realtor®, you can negotiate what items you will repair with the buyers. It is important to know that the buyers have the option to back out of the purchase of your home during the home inspection period if everyone cannot come to an agreement over the repair list.
What things do I need to fix?
There are items on a home inspection list that your Realtor® may advise you to fix because they may be items that are required to be in working order by the lender before the buyers can receive a mortgage. A broken stove, the presence of termites, or an issue with the septic system are all items that a lender will want to see corrected. These are things that will need to be repaired no matter who the buyer is. Furthermore, if you’ve got a major issue and don’t repair it, like a problem with a foundation, sellers are required to share this information with future buyers as well and these issues will show up again on another home inspection report. While it’s never fun to have to spend more money than you were planning on in a home that you are moving out of, when these types of items appear, you will have to fix it. The only time these issues would not impact the sale of a home would be if you had a cash buyer who is willing to make the repairs; the buyer would not be constrained by the requirements of the lender.
Are there items I don’t have to repair?
When you are selling a home, you are not required to fix anything from the home inspection list. However, not making repairs will lengthen the time your home is on the market. If you are in a situation where you cannot make repairs, then talk to your Realtor® about selling your home as-is and completing a home inspection for informational purposes only. While this may decrease the number of buyers who are able to purchase the home, it does help to be clear from the beginning that you are not able to make repairs.
Cosmetic issues are low on the needs to be repaired list. If a buyer requests that the carpet in a room is replaced because of a stain, then this is a cosmetic concern. You do not need to repair it, but you might offer to repair a few more important items instead like a broken deck stair or a leaking faucet.
The home inspection found an issue with my home and I don’t have the funds to repair it. Now what?
Sometimes, an issue with a home is uncovered during a home inspection and the seller is not able to make the repair but still wants to move forwards with the sale. In these cases, the seller can offer a credit to the buyer in the amount of the cost of the repair work. Sellers can also offer a home warranty to the buyers. No matter what arrangement the buyers and sellers come to, a formal agreement will be added to the contract.
How will the buyers know if I fixed it?
When a seller agrees to repair items after a home inspection, you will have a window between then and closing day to get the repairs done. Before the buyers close on the home, they will do a final walk through and check to make sure the the work has been completed. If the work has not been completed as per the contract, then closing will be delayed.
