When people are in the market for homes, having sellers accept their offers can be exciting. However, prospective buyers should schedule third-party inspections of the homes they are preparing to buy. Many Pennsylvania mortgage lenders also require buyers to get home inspections completed before they will approve their mortgages. When an inspection reveals problems, buyers have a few options. They might be able to back out of the deal when the problems are severe or involve the structural integrity of the home. They might also be able to negotiate with the seller for reduced closing costs, repairs, or a reduction in the sales price.
Negotiating repairs after an inspection
To negotiate for repairs or repair credits after an inspection has revealed problems, buyers should start by getting an estimate for how much it will cost to repair the issues. They should then take the estimate and the inspection report and use them to negotiate with the sellers and listing agents. The sellers might be more willing to complete repairs when the damage is serious since the lenders might not approve the mortgage without repairs being completed. Major issues might include roofs that leak or structural integrity problems. Sellers might be more hesitant to complete repairs when the issues are minor or aesthetic. Repair credits against the purchase price or closing costs might be a good choice so that the buyers can complete the repairs to their satisfaction.
What if the seller refuses?
If the seller refuses to complete repairs, reduce the sales price, or provide credits against the closing costs for the cost of the repairs, the buyers will then need to decide whether to proceed with the sale or back out. If they choose to back out, they will receive all of the money they placed down on the property. The sellers can then re-list the homes. However, the sellers will have to disclose the problems that were discovered in the inspection to prospective buyers in the future.