Jeff’s Carlsbad Blog for First Time Home Buyers

What do I do When Problems Arise in an Inspection?

Posted in Due Diligence,Inspections,What do I Buy? by Jeff Dowler on May 18, 2007

inspector.jpgAfter the anxiety of getting an offer accepted, one of the next tense moments is during a home inspection. If the home is brand new or just a few years old this may be less of an issue.

You should know that most inspectors, if not all, will tell you that there is no home without some sort of defect or repair needed, even the new ones. The big question, of course, is what the problems are and how serious they are, what will they cost to correct, and do you want the home knowing what you now know.

So you may wonder – what do I do when problems arise in an inspection?

  • First, expect that there will be some issues, going in. Then you will not be so surprised.
  • Once you have reviewed the inspection report you will need to decide how to proceed. You have several options:
    • Accept the home and inspection “as is” and proceed
    • If the problems are significant, you may decide to back out of the deal (make sure you understand the implications of this in your contract and follow the procedure)
    • You may compile a WRITTEN list of the repairs and defects you would like the seller to correct (your agent can assist). You may want to have some other professionals in to evaluate th eissues so you understand the extent of the problems and the repair costs. 
    • You can request a change in the offer price to reflect the costs of repairs and defects (talk with your agent)
  • The seller, of course, has some options too, since inspectional issues become another set of negotiations. The seller can agree “in toto” with your request, may negotiate some other arrangement (fix SOME defects, provide a smaller credit), or may refuse to do anything at all.

I advise buyers to be reasonable about their requests for repairs, although safety issues, in my mind, really should be taken care of. More serious problems should be addressed since they can impact insurance or the loan itself. In some cases the problems are significant enough (say, major structural or foundation problems) that the best course of action is to say…NEXT!


2 Responses to 'What do I do When Problems Arise in an Inspection?'

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  1. […] What do I Buy?, Inspections, Financial by jdowler on the May 21st, 2007 As mentioned before (see What Do I Do When Problems Arise in an Inspection?), there is a good chance you will encounter some defects or repair needs during the inspection for […]

  2. […] Read my previous post on What if Problems Arise in an Inspection. […]

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