Selling your home can be a complex process, and one pivotal step involves the home inspection. Potential buyers often rely on this thorough examination to identify any issues with the property. If the inspection reveals repairs, sellers may face the question of what must be fixed. Understanding the common repairs needed after a home inspection is crucial for a smooth transaction.

1. Know Your Contract

Before delving into repair considerations, it’s essential to thoroughly review your sales contract. Understand the obligations outlined in the contract, especially concerning your responsibility for repairs. Avoid signing a contract until you are clear on these terms, as it will dictate the course of action you need to take post-inspection.

2. Three Categories of Repairs

Repairs typically fall into three categories: required, not required, and negotiable. Identifying which repairs belong to each category is key to navigating the post-inspection phase effectively.

Common Repairs Required:

Certain repairs are often mandated by lenders to secure financing for the buyer. These may address structural defects, building code violations, or safety issues. If the inspection uncovers such problems, you may be obligated to fix them. Consider obtaining bids from contractors and decide whether to handle the repairs or offer a repair credit to the buyer.

Repairs Not Required:

Cosmetic issues and normal wear and tear generally fall into this category and typically don’t need immediate fixing. Some contracts explicitly state that buyers cannot request cosmetic repairs but focus only on structural, code-related, or safety issues. Local ordinances and state laws may also influence your liability for specific issues uncovered during the inspection.

Negotiable Repairs:

Between necessary and unnecessary repairs lies a gray area open for negotiation. Market conditions play a role in determining the negotiating power. In a seller’s market, where demand is high, sellers may have more influence. In a balanced market, negotiations become more nuanced. Collaborate with your real estate agent to discern which repairs are reasonable to address and where you may need to push back.

3. Consider the Market Dynamics

Understanding the dynamics of the real estate market you’re in is crucial. In a competitive seller’s market, buyers might be more inclined to forgo repair requests to secure the property. However, in a more balanced market, negotiations become a two-way street. Cooperating on reasonable repairs can be advantageous, preventing the risk of the buyer walking away.

4. Be Reasonable and Transparent

As a seller, it’s essential to approach repair negotiations with reasonableness and transparency. While you’ve invested time in the selling process, accommodating some repairs can be in your best interest. Unaddressed issues may resurface with future buyers, necessitating disclosure. Work closely with your real estate agent to strike a balance that ensures a fair deal for both parties.

5. Closing Escrow Checklist (5 Days Before):

• Confirm completion of agreed-upon repairs.
• Ensure all necessary documentation is prepared.
• Verify that the property is in the agreed-upon condition.
• Communicate with the buyer to address any concerns.
• Double-check the closing timeline to avoid any delays.

Navigating the post-home inspection phase requires a strategic approach. By understanding your contractual obligations, recognizing the repair categories, considering market dynamics, and maintaining transparency, you can streamline the process and ensure a successful real estate transaction.