failing the inspection, any earnest or escrow money will be returned. Regretfully, there’s no standard template or step-by-step g uidance about what to do if there are issues with the house. It depends on how the repairs are drafted in the contract according to local real estate law. The desired buyer option (and this would probably only happen in a buyer’s market) is where the seller pays for all the repairs. Regardless, your contract should show which repairs must be done or paid for by the seller and which issues are wear and tear. Even a very old water heater, HVAC, or roof doesn’t have to be repaired if it works as intended. In case you buy the house “as is” and your inspection was only for informational purposes, you will have to calculate the repair costs and plan how you fix your new home. The best advice I can give at this point is to work with a real estate agent and draft an offer that defines very clearly how to handle repairs.
WHEN TO WALK AWAY?
Walking away from a deal because you can’t come to an agreement with the seller about the repairs is only possible when you have a paragraph in your purchase contract that explains exactly how to handle the inspection and repair situation. In a seller’s market, the seller will probably not be very cooperative while in a buyer’s market the seller may negotiate at least minor repairs disclosed by an inspection long before the thought to walk away hits you, and he or she will be more open to negotiating even bigger issues. 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. If the problem is something that needs to be fixed soon, but it is too expensive for you, walk away. If the issue is likely to cause a chain of other problems, and it is hard to estimate how much it will cost, walk away. Consider the pros and cons carefully and listen to your real estate team’s advice. They are usually more
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