What Happens After a Home Inspection?

After a home inspection, the focus shifts from identifying potential issues to strategically navigating the findings. The inspection report becomes a central document, guiding the subsequent decisions and negotiations between the buyer and seller. Understanding its contents and implications is paramount for a smooth progression toward the final purchase of the property.

Understanding the Inspection Report

Upon receiving the home inspection report, buyers should carefully review its contents, which include a summary of significant findings, detailed descriptions of identified issues, and photographic evidence. Reports often categorize defects, helping to distinguish between major structural or safety concerns, minor maintenance needs, and cosmetic imperfections. For instance, a compromised foundation or an outdated electrical system poses a greater immediate risk than a scratched countertop.

Consult with the home inspector for clarification on any unclear findings or to gain a deeper understanding of the severity of certain issues. The inspector can provide insights into the potential costs and urgency of repairs. Prioritizing findings involves concentrating on issues that affect safety, habitability, or long-term structural integrity. These might include problems with the roof, plumbing, HVAC system, or electrical wiring.

Not every noted defect requires immediate action or negotiation, as some indicate a home’s age and normal wear and tear. For example, a minor paint chip or a loose doorknob is considered a cosmetic flaw. Buyers should focus on significant defects that could lead to substantial expenses or safety hazards after purchasing the home.

Negotiating Repairs or Credits

Once the inspection report is understood, the next phase involves formally addressing the findings with the seller. This occurs through a repair request addendum or an amendment to the original purchase agreement. Buyers have several options: requesting specific repairs be completed by the seller, asking for a monetary credit at closing to cover repair costs, or seeking a reduction in the home’s purchase price. The choice depends on the nature and extent of the identified issues, as well as the buyer’s financial preferences.

Prioritizing requests focuses on major defects that impact safety, structural integrity, or essential systems. For instance, a malfunctioning furnace or a leaking roof would take precedence over minor cosmetic issues. Buyers present a list of desired repairs or a proposed credit amount, which the seller can then accept, decline, or counter-offer. This negotiation process aims to reach a mutually agreeable resolution.

Real estate agents play a role in facilitating these negotiations, providing guidance on common practices and legal requirements within the jurisdiction. They can help articulate requests clearly and manage communication between parties. The purchase contract stipulates a specific timeframe, within seven to ten business days, for these negotiations to occur and for an agreement to be reached.

Setting realistic expectations is important, as sellers are not obligated to address every item on an inspection report, particularly minor ones. If an agreement cannot be reached, the buyer may have the contractual right to withdraw from the purchase agreement without penalty, depending on the specific terms of the inspection contingency.

Subsequent Steps Towards Closing

Following a successful negotiation regarding inspection findings, several subsequent steps lead to the final closing of the home sale. If repairs were agreed upon, a re-inspection is conducted to verify that all work has been completed correctly and to an acceptable standard. This re-inspection occurs a few days before closing, ensuring that the property meets the agreed-upon conditions. The cost for a re-inspection is a fraction of the original inspection fee, ranging from $100 to $200.

The inspection findings can also influence the appraisal process, particularly if major defects impact the home’s value or if a lender requires specific repairs before funding the mortgage. An appraiser will assess the property’s condition and might factor in the cost of necessary repairs, potentially affecting the appraised value. Lenders may stipulate that certain repairs, such as those related to safety or structural integrity, must be completed before loan approval.

A final walk-through of the property is a step, scheduled within 24 to 48 hours before closing. During this walk-through, the buyer confirms that the property is in the agreed-upon condition, any negotiated repairs have been completed, and the seller has removed all personal belongings. This is the last opportunity to identify any new issues or confirm compliance with the purchase agreement before the transfer of ownership.

Throughout these final stages, various professionals play roles. Lenders finalize loan documents, title companies prepare for the transfer of ownership and ensure a clear title, and real estate attorneys review all legal documents. These parties ensure that all contractual conditions are met, funds are properly disbursed, and the property officially changes hands, culminating in the buyer receiving the keys.