Once your home is under contract the buyer will typically order a home inspection. It is the inspector’s job to check on the major and minor systems in your home. No matter what condition your home is in, the home inspector will almost always find a list of issues.
Once the buyer receives the home inspection report, they will generally review it with their agent and seek advice. Oftentimes the buyer will seek to have some of the issues on the report addressed. It is important for you to know that you are not contractually obligated to fix anything that is found in the inspection report. At the same time, if the buyer finds issues that they cannot live with and you do not agree to address them in any way, the buyer may terminate the transaction.
If we do receive an amendment requesting additional repairs, we will call you to discuss your options and guide you in the decision making process. Generally speaking, you can either 1) agree to fix some or all of the items, 2) agree to provide a cash allowance so that the buyer can address these issues after closing, or 3) decide not to provide anything at all.
I always advise my clients to mentally set aside 1% of the sale price to address any repairs that come up during the option period. For example, if your home’s price is $300,000, count on about $3,000 set aside (payable at closing) for inspection related issues just in case. Although I will diligently negotiate and seek to minimize your expenses, I don’t recommend we blow the deal over this. This is a very emotional time for the buyer, and they are about to make the biggest purchase of their life. Minor repair issues can easily be blown out of proportion if not addressed in a fashion that will mentally satisfy the buyer.
On the other hand, if you already had a pre-inspection completed on your property before we put it on the market, then you will be much further along and will not be blindsided during this process. You will know exactly what the issues are with your home, and I will market your home as one of my “pre-inspected” properties (kind of like a certified pre-owned luxury car).
Because I employ a wide variety of negotiation techniques, I almost never have a property fall out of contract. Unless the buyer or seller is being extremely unreasonable, we will be able to reach an amicable resolution to most inspection related issues.