What to Do If the Home Inspection Fails

The truth is there is no perfect home on the market, that kind of means that all home inspection reports are negative. That question is, what can you live with and what is a deal breaker to you? Whether selling or buying getting the home inspected is very important, that’s because you know exactly what you are buying or selling. The point is, a negative home inspection report should not be a cause for panic, instead think of it as the first step in buying or selling a home.

Expect the unexpected

As mentioned above all homes have problems, the question is how costly or severe is the problem? If you are selling, a negative report may mean selling them at a lower price. That may mean sacrificing profit, to ensure that you get what you wanted or something close to it. You should put some money aside for unexpected expenses.

Can you afford the repairs?

How much extra cash did you set aside for this type of problem? If its zero, you should consider renegotiating the price. A major flaw doesn’t necessarily mean that you will lose your dream home if you can get the seller to agree to lower the price so that you are left with the amount needed to make repairs you should go for it. Another option is to ask the seller to make the repairs, there is no guarantee of that happening but asking never hurts.

The good news is when a problem is found it boosts your negotiating power ie it makes it easier to ask for a price cut.

Make repairs or sell as is?

If you don’t have the money or resources to make the repairs needed you should consider selling it as is, but if you can, make the repairs. The benefit of making the repairs is most buyers prefer move-in-ready homes thus you will find it easier to sell. On the other hand, if the home requires costly repairs, getting someone to buy it can be problematic.

Talk to your lender

What most people don’t realize is your mortgage interest rate is affected by a number of things including home location and equity. Some lenders want inspection reports and some don’t, also the condition of the home and its market value may affect lender decision. This makes it very important to talk to your lender about the current condition of the home before committing to anything.

Deal breakers

The following problems will cost you a lot of money to repair, if you don’t have the money to make the repairs or if the seller doesn’t agree to make them you should consider looking for another home:

  • Damaged foundation
  • Roof maintenance problems
  • Water damage
  • Pests
  • Faulty wiring
  • Mold
  • Unstable ground beneath the home
  • Septic system problems
  • Toxins in walls
  • Furnace issues

 Generally its all up to you, you decide what you can live with and what is a deal breaker to you.

About the Author nanaimo_home