What Fixes Are Mandatory After a Home Inspection (If Any)?
What fixes are mandatory after a home inspection? The short answer? It depends on your location, the state of the market, and the purchase agreement.
Your to-do list when you sell your home is already sizable by the time you arrange for a home inspection. So when an inspector lists a host of issues that might or might not surprise you, do you have to tackle all of those? What fixes are mandatory after a home inspection?
Although 20% of buyers waived inspection contingency, you may still be obligated to resolve certain issues, depending on your state’s and the buyer’s lender’s policies. In this article, we outlined which fixes are mandatory, who pays for them, what happens if you refuse to make repairs, and other common concerns.
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What fixes are mandatory for a seller to make?
“Mandatory” fixes can vary depending on where you live, the state of the market, the buyer’s lender, and the language of your purchase agreement. Home inspectors look for anything structurally or mechanically deficient, unsafe, not functioning properly, or not in accordance with a state’s standards. Typically, this covers seven major areas:
- Water damage
- Structural issues
- Old or damaged roofing
- Damaged or old electrical system
- Plumbing problems
- Insect and pest infestation
- Issues with the HVAC system
In addition, some states require inspectors to check for certain items. Nebraska law mandates that a home should have working smoke detectors and carbon monoxide detectors at the time of sale, for instance, says Matt Steinhausen, an independent home inspector since 1999 in Lincoln, Nebraska, who holds an A+ rating from the Better Business Bureau.
Otherwise, what’s mandatory comes down to the purchase agreement and what the buyer’s lender requires, our experts say. For instance, purchasers using FHA, VA, or USDA loans each have particular requirements.
In general, lender-required repairs encompass a home’s major components and anything that might affect living conditions: structural defects (foundation cracks, roof leaks), inoperable or faulty systems (HVAC, electrical, plumbing), and so on, says Neal Team’s Shane Neal, a veteran agent in the San Antonio, Texas.
“There are some cases where there can still be a little bit of negotiation, but ultimately, the seller is asked to fix those so that the buyer can get financing,” he says.
Unresolved major repair issues can mess with a buyer’s loan approval and the appraisal process, causing delays or even killing the deal. Lenders want homes to meet basic safety and structural standards, so things like a leaky roof or faulty wiring can lead to a lower appraisal or loan denial. If the appraisal comes in too low, the buyer might have to renegotiate, ask for repairs, or back out completely.
