After receiving an inspection report, there are two possible outcomes about how the situation may develop. In the best-case scenario, everything is fine, the house is in exemplary condition, and no further work is required. You’re good to go with other paperwork. A more typical scenario is that the house requires minor repairs. This may involve negotiations to ensure that the repair is done and inspected before proceeding, or a price concession to account for your expenses in making the repairs. The worst-case scenario is that the house needs significant investment not contemplated in the offer — for example, if the roof has exceeded its useful life. It is in immediate need of replacement, or the sub-structure leaks and can’t be inexpensively remediated. You might ask the seller to reconsider the sale price substantially, request the full amount to rectify the problem(s), or walk away. A complete inspection should be part of the conditions in a home sale; thus, failing the inspection, any deposit will be returned. Regrettably, there’s no standard template or step-by-step guidance on what to do if issues arise with the house. It depends on how you crafted your conditions. The best buyer option (and one that would likely only occur in a buyer’s market) is where the seller is liable for all repairs. Some contracts may include cost limits or split liabilities. If you buy the house “as is” and your inspection was only for informational purposes, sadly, you will have to calculate the repair costs and plan how to fix your new home. Some common problems that should be considered include roofing, replacing pipes, fixing leaks, and the need for new wiring in houses that are 30 to 50 years old.
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 wish to and for the money that you have. In a buyer’s market, the seller will
53
Powered by FlippingBook