Question: We just finished our home inspection and are overwhelmed by the list of recommended repairs. How do we know what to ask for and what’s reasonable to expect from the seller?
Answer: You should expect an inspection to turn up a list of issues, even for a new home. With the market shifting towards more leverage for buyers, inspection contingencies and negotiations are becoming more common. The challenge is figuring out which findings deserve further investigation or negotiation and which belong on your maintenance list after moving in.
An inspection report gives you information to make that decision, but it doesn’t automatically make every item the seller’s responsibility. In my opinion, the goal is to focus on issues that were uncovered that you didn’t account for when you negotiated the purchase contract.
Start With Your Contract
An inspection contingency can be structured in multiple ways. You may have a negotiation period that allows you to ask the seller for repairs or credit or you may just have the right to void, without a built in negotiation period. The former is favored by buyers, the latter is more attractive for sellers. Having permission to conduct an inspection does not, by itself, establish a right to cancel the purchase.
Your options depend on the agreement you signed. Make sure you understand them before assuming you can keep negotiating or walk away.
Focus on the Findings That Matter
An inspection report can make a minor electrical issue and a foundation concern look equally alarming when both appear on a long list of deficiencies, but they deserve different responses.
The issues I would focus on include:
- Structural problems
- Water penetration
- Safety hazards
- Systems or appliances that aren’t working properly
- Conditions that suggest a substantial repair or replacement is coming sooner than expected
Account for Age and Condition
You should try to establish the age and condition of major systems before making an offer, then use the inspection to verify what you understood.
You’ll have a tough time convincing most sellers to buy you a new water heater simply because the existing one is 17 years old, assuming it works and its age was disclosed before your offer. That future replacement should already be part of your ownership budget.
The discussion changes if the inspection finds that it’s leaking or otherwise failing. Similarly, a roof that was represented as recently replaced but turns out to be near the end of its useful life creates a different negotiation than an older roof everybody knew about.
Decide Between Repairs and a Credit
Often, an inspection agreement includes some repairs by the seller and a credit toward the buyer’s closing costs for other items.
For a straightforward repair, having the seller complete the work before closing may be convenient. Be specific about the work, the appropriate contractor qualifications, documentation, and how completion will be verified.
If the solution involves design choices or you want control over the contractor and quality of the result, a credit may make more sense. A deteriorated deck is a good example: you may prefer to choose its replacement rather than have the seller make those decisions for you.
Check with your lender before agreeing to a credit. Loan rules and your eligible closing costs can limit how much you can use. Also, some conditions may need to be repaired before closing to satisfy financing requirements.
Keep the Request Reasonable
A buyer can have legitimate concerns, and a seller can reasonably resist being asked to deliver a used home in brand-new condition.
Buyers should identify their priorities and support significant requests with the inspection findings and estimates. Sellers should take meaningful problems seriously and consider whether the same issue is likely to come up with the next buyer if this deal falls apart.
A focused request gives both sides a clearer path to an agreement. Your agent should help you decide what needs to be resolved before you’re comfortable proceeding and what you’re prepared to take on as the next owner.
If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at [email protected].
We have access to the most pre and off-market listings across the DMV of any brokerage and are happy to share what’s available with anyone who asks.
Below are some of our team’s pre/off-market listings, details and additional listings available by request:
- Mclean VA - 5BR/4.5BA/3,700 sqft – Detached Single Family (2023) – Randolph Rd Mclean VA 22101
- Falls Church VA – 5BR/4.5BA/4,000+ sqft – Detached (2017) – Brilyn Pl Falls Church VA 22046
- Capitol Hill (Washington DC) - 4BR/3.5BA/2,000 sqft – Rowhouse (1914) – South Carolina Ave SE Washington DC 20003
