Review Inspection Report
Once the inspection report comes back, you need to review it thoroughly. Don’t be surprised if it’s 30 + pages long with more than 25 “issues” that need to be repaired. This is typical. We’ve never seen an inspection report that didn’t have at least a few items that needed repair. However, there is a big difference between small cosmetic repairs such as needing to recaulk a shower or repair a leaky sink faucet and large issues such as sewer line offset or backed-up plumbing in the basement. Remember, the home inspection is an informational report for you, the buyer, not a to-do list for the seller. We should mainly be concerned about structural issues, safety defects, or appliances/mechanicals not working. Therefore, here are our tips for reading the inspection report:
Pay particular attention to issues relating to the electrical, HVAC, plumbing, roofing, radon, foundation, siding repairs, or water intrusion issues. These can be high dollar items to repair.
If there are any big ticket items which are concerning to you, decide if you want to have additional inspections performed. For instance, you can hire a structural engineer, have a sewer line cleaned and re-scoped, get an electrician’s quote, etc. to take a closer look at certain inspection items found in your general home inspection.
Make a list of items you feel the seller must repair or you’re not willing to go through with the transaction.
Make a second list of items you’d like the seller to fix, but would be willing to still close on the house without the seller fixing.
Make a third list of the items you’re OK with fixing yourself or will take responsibility for in the future.
Once you’ve done this, email us your list and we’ll review it and guide you through potential outcomes to your inspection negotiation. We will work together to help you during this important part of your home buying process.
Keep in mind that you can ask the sellers to repair items or provide a credit for you to fix the items after closing. Credits go towards your closing costs. For instance, if we negotiate a $2,000 inspection credit that amount would come directly off your closing costs. Therefore, you’d bring to closing $2,000 less than originally expected. That way you have that $2,000 in available cash to do needed repairs after the closing.
Remember that the things on the inspection report which are important are:
Safety issues
Structural issues
Roofing issues
Plumbing issues
Electrical Issues
Sewer issues
HVAC issues
Water heater performance issues
Working components such as appliances which are not working.
You need at least a few home projects, so you should NOT be asking for paint to be touched up, the landscaping to be redesigned, etc. Unless you are buying new construction, no home is going to be perfect. If you want a perfect home, we should be looking at options to buy for new construction. If you aren’t buying new construction, then we need to accept the house with its cosmetic flaws or find a new house. Remember, we are concerned with health issues, safety issues and things not working.
Once we’ve agreed on a strategy, we will submit an inspection objection and negotiate the inspection repairs with the seller’s agent. If there are only a few minor issues which need to be fixed, the negotiation will probably go quickly. However, if contractors or trade people need to be brought in to give estimates, expect the inspection negotiations may take 3 – 7 days. It is important to note, there is a timeframe for the sellers to respond to our inspection items. So it is best to hang tight and be patient at this time.
If we are able to come to an agreement with the sellers, we’ll write up a formal agreement (Inspection Resolution) which the sellers will sign. Either a seller credit will be provided or the repairs will be completed by the final walk through with receipts proving the work was done and sent to us ahead of time. If we are not able to come to a resolution, you have the right to cancel the contract instead and get a refund of your earnest money.
Keep in mind, as part of the inspection negotiations we can also ask the sellers to provide a home warranty for the first year. Click here to read more about home warranties. Let us know if you’d like us to ask the sellers to provide a home warranty as part of the inspection negotiations.
Questions about Colorado Real Estate in Longmont or Erie? Reach out to the Appreciate Realty CO agent you are working with directly or Call us at (303)956-4948 or email us at hello@appreciaterealtyco.com