What to do When Your Home Inspection Turns out bad?

So, it happened. Buyer or seller, your worst fear has come true. The home inspection has failed. Now, what do you do? In many cases, you may feel as if it’s the end of the world. Both buyer or seller feels like they have something…

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So, it happened. Buyer or seller, your worst fear has come true. The home inspection has failed.

Now, what do you do? In many cases, you may feel as if it’s the end of the world. Both buyer or seller feels like they have something to lose- either a magnificent dream home or an incredible financial deal. However, freaking out is the last thing you should do. There are many negotiable items you can take advantage of to make sure that the buying and selling process goes well for both of you.

Step 1: Don’t Freak Out

Like I’ve just mentioned above. There is no reason to freak out. A bad home inspection does not have to be a deal killer. Take a breather and assess what options are feasible for yourself and the other party. If you are the seller, are you willing to repair any damages discovered? If you are the buyer, think about what you would like to see fixed before you close the contract? The best advice I could give is to keep clear communication between you and the other participant. Lay out your non-negotiable items and decide whether they work for both of you so as to not waste time and money.

Step 2: Ask About and Negotiate Repairs

If you are the buyer, it might be worth it to request that the seller takes care of the repairs before closing. However, do remember that they most likely have their mind set on their “new home” and repairs to their “old home” might be the last thing on their mind. Be ready to negotiate contingencies and pricing. For buyers, the best thing you can do is to contact at least three contractors to come up with a fair price that you would like to see the seller take off the sale price (or repair) for compensation.

Step 3: Decide if the Accommodations fit Your Expectations

Do the demands and expectations meet your financial and personal needs? If you are uncomfortable with something, let the other party know ASAP so that you may hopefully work out a compromise. You do not have to agree to anything that does not sit well with you. There will always be other homes to buy and other buyers who will make an offer. Often, by keeping an open line of communication, you will be able to conjure up a win-win situation for yourself and the other participant in the home deal.

Step 4: See if You’d Like to Handle Repairs on Your own

Buyers, if this home is your dream home and you have a safety budget, look at the possible option of putting out the money for the repairs yourself. You may never know the seller’s true situation. They may have every intention of wanting to fix any problems discovered, but it just may not be feasible for them at this time. Determine whether these issues are something that needs to be fixed ASAP or can wait a few years until you have the budget to mend them after you’ve been moved in for a while. If you really cannot live without this home, then it might be a risk worth taking.

Step 5: Cancel the Deal

If all else fails and everything keeps going sour, it might be a smart option just to call off the purchase entirely. If your home inspection reveals some substantial issues that the seller is unwilling to repair… then sometimes taking the hit of losing your dream home will be a safer decision for you and your family. Although it might be your least favourable option, it may save you from financial debt or an unsafe living environment; and if the seller is desperate, they may even reconsider your requests.

As you can see, there are plenty of ways to work around a bad home inspection. However, there are not too many options once the home sale is final. This is why it is so important to book a pre-home inspection and discover any hidden defects before purchasing your home.

Will you be scheduling a home inspection for your newest house purchase? If so, contact me at Building Pro Inspections today.