A home inspection allows your buyer to be fully informed about the state of your property and makes them aware of any issues they would inherit upon purchase. Here’s a look at three potential inspection outcomes and what each one means to you as a seller.
Outcome 1 – All Clear:
After a thorough inspection of all the major parts of your property, the inspector may return with a clean bill of health for your home. This is your best case scenario because it means that your roof, foundation, electrical system and so on are all in good shape. No water damage from leaks was detected, and there were no critical structural deficiencies identified.
The sale can proceed as planned. The original offer on your home stands and final negotiations can commence. This is the quickest route to a seat at the table for closing the deal. If your home is newer or well taken care of, you can hopefully expect this result. You’ll get the best price for your home.
Outcome 2 – Request for Repairs:
In some cases, the inspector’s report comes back with some moderate issues which may affect the sale. For example, a hot water heater may have a leak; your bathroom might be in disrepair or there may be cracks in your drywall due to settling. In this scenario, the buyer returns to you with the inspection report and asks that you make the necessary repairs before the deal proceeds.
At this point, you have the option to walk away from the buyer; but it’s not usually advised that you do so unless there are other issues at hand. Typically, sellers will simply proceed with whatever work needs to be done, as noted on the inspection report, so the sale can move forward.
If you agree to have the work done, you can research contractors and choose whichever one fits into your budget so long as the buyers approve the actions being taken. Read on for the second possible outcome that can come into play when repairs are needed.
Outcome 3 – Price Negotiations:
If the issues revealed by the inspection are severe or simply numerous, the buyer may want to haggle on price rather than have you complete the repairs. In this case, they acknowledge that they will have to shoulder the burden and cost of the work – so as compensation, they may ask you to reduce the sale price of the home.
Again, you can walk away at this point if buyers are being unreasonable. However, if you feel the request is fair, you can negotiate an agreeable price reduction. This can be a wise choice if the updates needed require custom design choices like new appliances or flooring. to make sure buyers get what they want. Another common tactic for sellers is to offer to cover a portion of closing costs in lieu of reducing the list price of the property.
Now that you know what to expect, you can head into your home inspection feeling confident and prepared for any outcome!
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