Repairs Needed After a Home Inspection: Who Pays for What?
A real estate inspection may add a couple more steps to your home buying or selling process, but is always worthwhile once everything is wrapped up. The significant roadblock when making repairs for a real estate transaction? Figuring out who pays for what issues!
Let’s dive into the negotiation process between a buyer and seller coming to terms on a property.
Can an Inspection Lead to No Sale?
The most straightforward answer is no; nothing bars you from purchasing a home with a less-than-savory inspection grade. However, an inspection may uncover serious issues that may cause a buyer to hemorrhage money after investing heavily in the property.
Negotiation: Who Pays for What?
When a home inspection report shows issues in need of repair, the negotiation process begins between the buyer and the seller. Many sellers don’t want to make repairs as it keeps them in the house they want to sell, along with the loss of value from the originally agreed-upon price.
Conversely, many buyers desire to conduct or inspect the work themselves to ensure a job. So, a seller may lower the property's price, allowing the buyer a little leeway when making repairs.
What the Seller is Willing to Negotiate
If a seller strongly desires to sell the property and significant issues like a crumbling foundation or an outdated electrical system, they will consider dropping the price. It may be impossible to sell a house with a foundation on its last legs or a leaking plumbing system, so a lower price is better than nothing!
What a Seller Should Not Pay for
A seller should strongly consider negotiating lower prices if significant issues are present, as this may be the only way to sell. Still, there are some things a seller should never have to pay for.
Anything cosmetic, like house color or door style, does not affect the safety and overall quality of life within the house. A buyer wanting changes in the cosmetic areas should do so after they have purchased the home.
Pre-Inspection: Seller Benefits
A seller conducting a pre-inspection before they put the property on the market will get a head start on any repairs to finish to get the price they want. At the same time, a seller may settle for a slightly lower price to put on the market to make it more appealing to potential buyers. These buyers may even see it as a good deal even with the needed repairs!
Schedule Your Inspection With DMC Home Inspections
DMC Home Inspection is proud to employ only InterNACHI and ASHI-certified home inspectors, leaving no stone unturned during our 150 elements of thorough examination.
Schedule an inspection online or call us at 612-310-1692 today!