A home inspection is an integral part of selling a home. Providing both the seller and buyer a snapshot of a home’s existing condition, a home inspection helps all parties involved make informed decisions on the purchase of the property, including making repairs, negotiating offers, and more.
Working with one of the industry experts at KeyVest Real Estate ensures that you, as a seller, know exactly what to expect during and after your home inspection. With years of valuable experience, our team offers exclusive market insight to help you navigate all of the complexities of the closing process. Read below to learn more about what happens for sellers after the home inspection.
After the Home Inspection, What’s Next for Sellers?
Buyer Reviews the Home Inspection Report
During your home inspection, the examiner will compile a report on your home’s structural condition. Typically, the report will cover the home’s HVAC system, plumbing, electrical system, roof, walls, ceilings, flooring, windows, and other foundational elements. Once the inspection is complete, the buyer will send the report to your buyer for review.
The buyer and their agent will review the inspection report and decide whether to proceed with the purchase, ask for repairs, or cancel the purchase agreement. As a seller, it’s important to note that you will not have access to the home inspection report unless you pay a fee. Typically, the only thing you will receive following the inspection is a repair request from your buyer.
Buyer Sends Repair Requests to the Seller
After a few days of reviewing the report, the buyer will send repair requests to the seller. Typically, the inspection report will list suggested repairs and notify the recipient of any health and safety issues associated with the property. The buyer and their agent will review this list and decide which repairs must be done before they can proceed with the purchase.
Common repairs resulting from a home inspection typically include electrical repairs, such as faulty breakers or defective wiring, plumbing leaks, HVAC issues like damaged ductwork or broken thermostats, roof leaks or damages, and other structural defects, such as rotting wood or broken framing. However, sellers will not be responsible for cosmetic-related repairs such as renovations or landscaping.
Seller Responds to Buyer
As a seller, you have three options for responding to a buyer’s repair requests. You can either move forward with the repairs, negotiate which repairs to complete, or refuse to complete any of the repairs. Most states don’t enforce rules about fulfilling repairs, so usually, it’s entirely up to the seller. In this case, sellers will typically decide based on market conditions.
In a buyer’s market, sellers are typically more eager to sell and are more likely to agree to the requested repairs. However, in a seller’s market, the seller might be less inclined to fulfill the buyer’s requests, as they might have other offers on the table without home inspection contingencies. The seller might also decide to offer the buyer credit or financial concession, which involves lowering their sale price to free up room in a buyer’s budget to make repairs themself.
Buyer and Seller Make Agreement
If you refuse to make repairs, your buyer can walk away from the deal. However, if you decide to proceed with the requested repairs, you and your buyer will update your purchase agreement to outline the terms for making home repairs.
The Sale Moves Forward to Appraisal and Closing
Once you and your buyer have agreed on repairs, the sale will move forward to the home appraisal and real estate closing. The buyer’s mortgage lender will require an appraisal to ensure the home’s market value aligns with the loan.
