Navigating Home Inspection Repairs: From Negotiation to Closing

Written by Wena Roeloffze, REALTOR and Lifestyle Expert. Owner of Realty Club 74, brokered by Coldwell Banker Realty.

Mastering Home Repairs Post-Inspection: A Comprehensive Guide

Congratulations! You've found your dream home, but before the keys are in your hand, there's the crucial step of the home inspection. It's common for inspection reports to reveal necessary repairs. Don't fret; here's a step-by-step guide to handle these repairs seamlessly.

1. Prioritize & Assess

Review the inspection report diligently with your REALTOR and Home Inspector. Remember your discussions from the inspection have your notes nearby to compare. Categorize repairs by urgency. Some issues might be critical (like structural concerns), while others are cosmetic (like chipped paint). Focus on prioritizing the essential repairs to negotiate with the seller. During the inspection we will be talking through it as well, but the report usually looks far more complicated than what was discussed. Look for defects, repairs, maintenance issues and deferred items. During this time, make notes and set reminders for maintenance schedules, home warranties and deferred items.

2. Consult Professionals

Together with your REALTOR, make sure to engage with contractors or specialists for a deeper evaluation of the issues highlighted in the inspection report. Their insights can help you gauge the extent of repairs needed and provide accurate cost estimates. One example would be structural issues. If the report has any negative comments on the basement foundation, care should be taken to evaluate the issue with an expert, to make sure that your offer is in line with the condition of the home. Some structural issues can be fixe by installing beams for $5000, while other solutions may add up to 8 times that amount. Rather be safe than sorry.

3. Negotiate with the Seller

Armed with a comprehensive understanding of the repairs required, negotiate with the seller. You can request repairs to be done before the closing, a reduction in the sale price, or credits to cover the repair costs. Keep the lines of communication open and aim for a win-win solution. Be aware that the seller is under no obligation to repair anything you request and also that the contract can be vague relating to repairs. Most repair language states that the seller can repair in a good and workmanlike manner. This can be interpreted in many ways. What is good for one person, may not be good for another. When you negotiate with the seller, make sure to be very specific. Your REALTOR should be drafting this amendment without ambiguities. In our experience, please don’t ask the seller to do grading around the home or extend downspouts - those are not intended defects and repair issues to negotiate about on an amendment. Those issues are clear to see at the showing. Use the inspection report for things the seller were not aware of and that no one could have known prior to an inspection. It’s not primarily a bargaining tool to lower your offer price.

4. DIY vs. Requesting Pros

Evaluate what repairs can be handle DIY and what's best left to professionals. If contract language is not specific, most sellers will manage repairs as cost-effective as possible. If there are any repairs that would be best handled by licensed contractors to ensure safety and compliance, make sure to include that in your amendment. Remember the “good and workmanlike manner” in which repairs should be done? Make sure it is specified or else, decide on a closing cost and make sure that it is repaired the way you would expect it to, after closing on the home. One example would be a leaking faucet in the bathroom or kitchen that could be replaced DIY. Wouldn’t it be better to replace the leaky faucets with ones you like rather than the seller’s choice? Repairing a dishwasher, electrical issues or roof repairs, are best left to licensed contractors.

5. Get Multiple Quotes (if needed)

For repairs that need professional intervention, obtain multiple quotes. This not only helps you to determine the full scope, but also gives the seller the opportunity to see that this issue is important to deal with in a professional manner. It also shows that you are totally invested in this process and not just looking for issues. As a buyer you are totally anxious about what you are purchasing and would want to avoid any nasty surprises. Just as anxious as you are, so is the seller. If any defects come up, they stand a chance to lose the transaction and has to start the process from scratch. This is a very stressful contingency to pass on any transaction and working in a collaborative manner with the other party, is always a great idea and resolves a lot of insecurities on both sides.

6. Document Everything

Maintain thorough documentation of the repaired items and keep invoices and lien waivers. Keep records of quotes, receipts, permits, and contracts. These records are valuable for future reference, especially if the repairs are covered under warranty. This is also a good time to update your reminders of maintenance items and deferred items. Your REALTOR will be the driving force in getting all of this to you in a timely fashion.

7. Reinspect Before Closing

Before or at the final walkthrough, reinspect the property to ensure all agreed-upon repairs are completed satisfactorily. Don't hesitate to address any unfinished work or discrepancies before the closing. Depending on the repairs, more than one walkthrough could be advised. I know a lot of buyers have their final walkthrough on the day before closing, but every transaction should be approached on its own merits. Your REALTOR should offer you the opportunity in your initial offer to do multiple walkthroughs of the home, and of course in complete consideration for the sellers. Make sure that your biggest purchase doesn’t end up as your biggest headache.

8. Plan for Future Maintenance

I cannot stress this enough - once the repairs are completed, create a maintenance plan. Regular upkeep can prevent minor issues from becoming major repairs in the future. The home you are buying should last a lifetime, although you won’t be living there all your life (most probably). And if you are, even more important to keep your home updated, maintained and well-insulated to minimize costs, expenses and most importantly, increase in value. Some day you will sell it, and it should make you a profit.

Final Thoughts

Navigating repairs post-home inspection can be a pivotal phase in your homeownership journey. Remember, clear communication, thorough evaluation, and prudent decision-making are key. By following these steps and staying proactive, you'll ensure a smooth transition into your new home without the burden of unresolved repair issues. Together with one of our trusted Home inspection resources, we are giving a free list of what every buyer should know about the home inspection process. If you have any questions, get in touch with us here. To get the free list, complete the form below.