A home inspection is a standard part of selling a property. It’s also very likely to bring up one or more issues—some of which are more serious than others. It’s important then for both buyers and sellers to have a clear idea of next steps in regards to fixes after a home inspection, including who’s responsible for what and what fixes are mandatory (if any) before the deal can go through.
Here’s what to know, including quick tips for negotiating repairs after the home inspection has taken place.
Are there any mandatory fixes after a home inspection?
What qualifies as a mandatory fix after a home inspection depends on the state that you live in and the language of your contract. In many instances, sellers may not be legally required to make any fixes at all—though the buyer is certainly able to request them.
Home inspections are one of the very last steps before closing, and take place after a buyer has made an offer on a property and a seller has accepted that offer. These inspections, which are performed by qualified professionals, are the buyer’s last chance to learn all that there is to know about a home and make sure that they want to proceed with the sale. And in almost all cases they’re going to bring to light some issues that weren’t apparent at first glance.
Whether or not the fixes after a home inspection are mandatory or not will be largely based on location. Contract language matters here too, since if a buyer has already agreed to purchase a property “as is” then the seller is under no obligation to take care of any fixes at all, even those that might otherwise warrant some back and forth negotiations.
So what types of fixes might be mandatory? If you live in an area that requires sellers to address certain issues before a sale can go through, then these fixes are largely structural. They include:
- Moisture damage, including mold issues
- Damage to the home’s foundation or other structural components
- Damage to the home’s electrical system
- Damage to the roof
- Extensive plumbing problems
- Extensive HVAC problems
- Rodents, insects, or other pest problems
- Building code violations
In all of these cases, the fix is necessary because it poses some sort of danger to the future tenant—rather than just a mere inconvenience or future expense.
As for what doesn’t make the cut is things like cosmetic issues, broken or outdated appliances, and non-serious plumbing or HVAC issues (think leaky faucets, poor water pressure, or inefficiencies in heating and cooling). All of these fixes can be requested by the buyer after the home inspection, but it’s very unlikely that the seller will need to make them—though they still may in order to ensure that the sale proceeds.
Mandatory fixes vs. mandatory disclosures
Where many buyers and sellers get confused is the differences between mandatory fixes after a home inspection and mandatory disclosures.
It is much more common that a state will require a seller to notify potential buyers of any major issues than it is for them to require the seller to fix the issue before a sale can be finalized. These are known as mandatory disclosures, and are a way to protect buyers from purchasing a property under false pretenses.
As for what constitutes a mandatory disclosure, it’s an overlap with the list of potential mandatory fixes. Structural issues; serious issues with electrical, plumbing, or HVAC systems; water damage issues; roof issues; and pest issues are all examples of items that might be revealed in a home inspection that the seller would then be required to disclose, either to future interested buyers if the original buyer backs out or if the home inspection was done as part of the pre-listing period.
What if the seller refuses to make the fixes?
So long as they have not entered into an “as is” agreement, all buyers have the right to request that the seller make certain fixes after a home inspection. And if they live in a state where the requested fixes aren’t mandatory, then the seller has a right to refuse.
If it’s the case that a buyer has requested certain repairs and the seller has said no, then the buyer may choose to walk away from the sale. This can be hard to do once you’ve already gotten emotionally invested in a property, though may be the best course of action if no other agreement can be met.
One way to avoid having to make this tricky decision is to make an offer contingent on the home inspection. That sets out the expectation from the get-go that the buyer may request fixes, with both buyer and seller agreeing that—so long as those requests are reasonable—the final sale will be dependent on at least some of them getting made.
Tips for negotiating repairs after a home inspection
We’ve already covered this in more detail, but here’s a quick look at the four most productive courses of action a buyer can choose to take if they have repair requests following a home inspection.
Tip #1: Ask the seller to make the fix
While fixes may not be mandatory, the buyer certainly still has a right to ask for them. This includes both the serious structural and safety-related issues listed above as well as more cosmetic fixes. This is a very common post-inspection scenario, and many sellers are willing to make reasonable fixes in order to push through a sale.
Tip #2: Ask for a discount
Some sellers may be open to knocking some money off of the sale price to accommodate repairs that need to be made, especially for serious repairs. Before buyers ask for this though they should do their research to ensure they’re asking for a proper price reduction, instead of just guessing at what the repair in question might cost.
Tip #3: Ask for some other form of compensation
Instead of asking for a price reduction, some buyers may choose to barter in other ways—for instance, asking for furniture or appliances that the seller was planning to take with them. This isn’t a common course of action, but it’s worth a try if there’s something the buyer really wants.
Tip #4: Ask for a home warranty
A home warranty is a type of insurance policy that provides peace of mind to buyers that if certain major appliances or systems break down during a certain time period they’ll be able to get them fixed at no or low cost. They cover things like heating and cooling systems, electrical systems, plumbing systems, and duct work, and can be purchased by the seller on the buyer’s behalf in lieu of making repairs.
Ultimately, it’s up the buyer, the seller, and their respective agents to work out the kinks of what should be done in regards to post-home inspection fixes. While it’s unlikely for fixes to be legally mandatory, there are still certain best practices that dictate what sellers should fix—or at least what they should fix if they want a chance at selling their property at a good price.
Both buyers and sellers have some leverage here, so negotiations are always the optimal way to go about resolving issues that come up during the inspection. Most of the time, both parties will be able to come up with a beneficial agreement—and if they can’t, they can choose to dissolve the deal with minimal or no penalty instead of moving forward with a sale that doesn’t work for everyone.
