What are a buyer’s options after receiving a home inspection report?
After having your offer on a home accepted, a common next step is to have a home inspection. Rare is the home that will yield an inspection report that doesn’t call for attention to at least some non-trivial matters.
A buyer has two primary ways to respond to an inspection report. One is to submit an addendum to the sales agreement specifying that the seller will remedy items identified on the inspection report, employing qualified tradespeople and providing proof of completed work. Another option is to have the buyer receive a credit for closing costs and prepaid expenses, to cover the cost of the buyer having the issues addressed.
With Option A, the buyer has the peace of mind that an expert will have fixed a component of the house identified as requiring attention — furnace, water heater, etc. — and completed necessary repairs before he moves in.
It’s important to do a final walk-through before closing to make sure that issues buyer and seller have agreed will be fixed by the seller truly have been addressed. Naturally, you will want to obtain and keep proof that such work was completed. If something goes wrong during the period covered by the tradesperson’s warranty, having documentation will make it easier to get the problem resolved.
Option B might be preferred by some sellers. There is a school of thought that sellers should not examine any part of a buyer’s inspection report. Instead, this line of thinking goes, a seller should provide a credit for the costs of repairs and have the buyer take care of getting issues identified in the inspection addressed.
More responsibility falls to the buyer under Option B. Rather than having the seller arrange and pay for repairs, this buyer has to obtain estimates for the necessary work to receive a sufficient credit to cover repairs he will have done. Keep in mind that an estimate of the costs for a repair can be superseded once the work is done.
There are other options, of course, in working toward a compromise — such as using a combination of Option A and Option B to address whatever the home inspection report shows as needing attention.
Working with an experienced Realtor can help make the post-offer, pre-closing process go smoother for you. If you’re a buyer, I can help you decode a home inspection report while keeping the deal on track.
If you’re thinking of selling your home, I can help you negotiate a fair agreement arising from a home report. Whatever your status, I can assist you in your real estate transaction. Please contact me at (541) 383-1426, or visit Bend Property Search to connect with me through my website.