Property inspections are common in most real estate transactions, and are recommended even in the hottest markets. The question becomes what do you do when the inspector’s report comes back with items listed in need of repair. Whether you’re the buyer or the seller, just keep a cool head and approach the repairs logically.
Focus on the major defects. Minor repairs are not the ultimate goal of the inspection. Major repairs should be handled as soon as possible, in order to avoid any delays in closing.
Once the buyers have secured quotes for repairs, they should present their requests to the sellers either for the repairs or for a reduction in the selling price. The sellers may also choose to solicit quotes, and if there is a significant difference, the two parties may negotiate.
Either party may complete the repairs, but sellers who are busy preparing to move may offer a credit to the buyers so the buyers may have the repairs completed later to their satisfaction. Once agreed to, the final terms of the arrangement should be put into writing, and then signed and dated by both parties.
Whoever accepts responsibility for the repairs should have paid receipts for all of the work done. Proper documentation of each step in this process will protect each party and help ensure a smooth and successful closing.
Note: This article was originally published on this site on March 17, 2016. It has been updated reflect the current home market.