The worst-case scenario is that the house needs major investment not contemplated in the offer — for example, the roof has exceeded its useful life and is in immediate need of replacement or the sub-structure leaks and can’t be inexpensively remediated. You might ask the seller to vastly reconsider the sale price, ask for the full amount to fix the problem(s), or walk away. A full inspection should be part of the conditions/ contingencies in a home sale, thus failing the inspection, any earnest or escrow money will be returned. Regretfully, there’s no standard template and step-by-step guidance about what to do if there are issues with the house. It depends on how you crafted your conditions. The best buyer option (and probably would only happen in a buyer’s market) is where the seller is liable for all the repairs. Some contracts may include cost limits or split liabilities. In case you buy the house “as is” and your inspection was only for informational purposes, sadly, you will now have to calculate the repair costs and plan how you fix your new home. Some of the common problems that should be considered include the roofing, replacing the pipes, fixing any leaks, and the requirement for new wiring for any 30- to 50-year-old houses.
WHEN TO WALK AWAY
Professionals say you should cancel the deal if you can’t buy the house you want on the conditions that you want and for the money that you have. In a buyer’s market, the seller will negotiate on minor repairs disclosed by an inspection long before the thought to walk away hits you. However, some repairs are just not worth it. If the problem that the homeowner refuses to fix or pay for is dangerous and you can’t fix it, then it may be time to walk away.
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