What Repairs Can You Negotiate After a Home Inspection?

Most buyers include a home inspection contingency in their purchase offers, which means a homebuyer can negotiate repairs — or even cancel a sale altogether —  based on the results of the inspection. It’s important for buyers and sellers to understand that no matter the age of a home, a home inspector will find some flaws; it’s their job. But how do you know which “flaws” are worth negotiating?

The gray area

Some repairs listed on an inspection report will actually be required by lenders before they’ll approve the release of funds to a buyer. Then, there are cosmetic issues and normal wear and tear that usually doesn’t have to be fixed. Between the two ends of the spectrum is a gray area that is up for discussion.

REALTOR^® Frank McGillis with RE/MAX Real Estate Professionals says any repairs that could affect a buyer’s “liveability” definitely need to be addressed.

“Anything to do with the furnace, water heater, roof, foundation...those are big-ticket items that you’ll want to discuss with the seller,” he said. “There is no guarantee they’ll fix the issue or offer a repair credit, but if they don’t, you at least have the information and can decide how you want to proceed.” 

In addition to the areas McGillis mentioned, other inspection items worth addressing include, the presence of termites or other wood destroying insects, drainage or water problems, mold issues, elevated radon levels, major electrical or plumbing problems, etc.

“Most inspectors will group findings into categories — safety concerns, major concerns, items to monitor, and maintenance items,” said McGillis. “Any major problems or safety concerns will automatically need to be addressed. Typically, the rest will be minor repairs and helpful information for the buyer so they know what may need to be taken care of in the future.”

What if your inspection turns up no major problems? Can you negotiate the minor, more cosmetic fixes? McGillis says how you handle those issues really depends on the type of market you’re in and how the previous negotiations went.

“In a fast-paced seller’s market, buyers really can’t be too picky when it comes to minor issues,” he said. “You could risk upsetting the seller, especially if the original negotiation was already a bit tense. It’s important for buyers to remember that an inspection report isn’t a punch list for the seller. You’re buying a home that someone has lived in before, so you will have repairs and maintenance over time; that’s just part of being a homeowner.” 

Expert guidance

Handling the home inspection, and its results, is just another reason why buyers (and sellers) should always enlist the help of a local REALTOR^®. Not only can they refer you to a professional, qualified home inspector, but most REALTORS^® will also attend the inspection and go through the findings with you and the inspector. If there are repairs that need to be addressed, a REALTOR^® is experienced in complex negotiations and is looking out for your best interests.

McGillis says a professional REALTOR^® will also offer solutions that the average person may not think of.

“If an inspection report reveals no major structural issues, but some of the mechanical systems are pretty old, I may suggest asking for a home warranty,” he said. “This can be a great way to handle items that don’t need to be fixed, but are still concerning to buyers.”

When it’s all said and done, the goal for any real estate transaction is for both sides to come to a mutually acceptable agreement, and that can sometimes be tricky, especially when dealing with the complexities of an inspection. To make sure your financial interests are protected, enlist the help of an area REALTOR^®. You can find a list of local agents and inspectors on the Greater Lansing Association of REALTORS^® website at www.lansing-realestate.com.