What To Do After a Home Inspection

Now that your home inspection is complete, it’s time to address the repairs listed in the report. If you’re living in your home already, you’re responsible for fixing those issues to maintain the safety of your house. If you’re buying a new house, it can be confusing to figure out who is responsible for the repairs—the buyer or the seller? 

Nearly all buyers find some issues that arise during new home inspections. That’s why it’s important to understand what your options are for addressing major problems before you choose to make an offer and plan to move in. Discover how to negotiate with a seller and address any repairs that need to be fixed after an inspection with this guide.

What To Do With the Home Inspection Report

Once a home inspector has completed the inspection, you’ll receive a detailed report. This home inspection report can be up to 40 pages long, so it’s often recommended to review it with your real estate agent to better understand the findings. 

Some problems that may be listed in the inspection report include:

• Structural damage

• Pest infestations

• Dead trees

• Plumbing issues

• Electrical hazards

You’ll typically have up to three days to review the home inspection report before negotiating with the seller on who will pay for the repairs. The report belongs to the purchaser of the inspection, and will not be sent to the seller unless they contribute to the cost. The seller will often just receive a repair request once you have gone over the inspection report with your agent.

Sending a Repair Request

Once you’ve read your home inspection report, it’s time to decide which repairs you want the seller to fix and which repairs you’re willing to take on. 

Your report may have turned up some non-essential or cosmetic repairs that are typically not the responsibility of the seller, including:

• Worn countertops

• Old carpets

• Landscaping

• Repairs to exterior buildings

It’s usually considered unreasonable to ask the seller to address these repairs, and they will likely be your responsibility as the buyer.

Instead, focus on the most expensive repairs or any major damage. Create a repair request that will be sent to the seller that addresses the bigger issues you’d like them to fix before closing, like:

• Major electrical issues

• Plumbing leaks

• Roof damage

• Structural defects

• Removal of asbestos

Depending on your loan, there may be mandatory repairs that need to be addressed before moving forward. FHA, VA, and USDA loans have seven requirements that need to be in working condition before proceeding with a sale.

Determining who pays for the home repairs depends on the negotiations made between the buyer and seller. They may end up as the responsibility of the buyer, the seller, or split between both parties.

How To Negotiate With a Seller

Once you’ve sent a repair request to the seller, they typically have three days to review it. Upon their review, they can choose to respond in one of three ways:

• The seller can agree to make the repairs

• They can negotiate the repairs

• They can decline the repair request 

The seller will likely make their decision based on their motivation to sell and the current market conditions. If it’s a buyer's market, they will be more likely to complete the repairs; however, in a seller’s market, they hold more power and may decline. 

If the seller agrees to the repairs, they can offer to: 

• Purchase the repairs

• Provide a credit

• Provide a financial concession

It’s recommended to take a credit or concession, as a seller will often choose the cheapest and quickest option for repairs. A credit will provide you with a decided amount of money to use for the repairs, whereas a financial concession will consist of the seller negotiating the sale price after the inspection to account for the repair costs.

The seller may also come back to you and try to negotiate the repairs. They may be willing to fix some things, but not all. If this happens, it’s important to know what your priorities are and determine what repairs are your non-negotiables. Then go back to the seller with your updated request.

If the seller declines the repair request entirely, they may: 

• Send you a written notice of this

• Simply not reply to your request

This is more likely to occur if your repair request includes unnecessary or cosmetic repairs that the seller isn’t responsible for. The seller may also decline any requests if they are selling the home as is. When a home is being sold “as is,” the seller acknowledges that the property may need repairs, but they are not willing to take on the responsibility. If the seller declines your request, the home inspection contingency allows you to walk away from the sale. 

Final Steps To Close on the Sale

Once you’ve come to an agreement with the seller regarding repairs, the purchase contract will be updated. The purchase will then move into the appraisal and closing stages. 

Your lender will likely require the home to be appraised so they can determine the current market value of the property. The cost of the appraisal is often the buyer's responsibility and averages $350. 

After the appraisal, the final steps before closing will include a title search, homeowners insurance, and a final credit check. Once these are complete, you can prepare for closing day and start the fun of dreaming up decor for your new home!