Even in a seller’s market, buyers may still ask for some contingencies. Common ones include a financing contingency, an appraisal contingency, and an inspection contingency. Most sellers today want to see a pre-approval letter before they consider an offer. Lenders require an appraisal as part of the loan approval process. I always recommend that buyers get an inspection done, too, even in a newly constructed home. But when the home inspection report comes back, what repairs are the seller responsible for?
What Repairs are Sellers Responsible for After a Home Inspection?
Required Repairs
Most inspections come back with some items listed that may need immediate attention. However, keep in mind that you, the seller, do not have to fix every single item that the inspector recommends. While no repairs are legally mandatory for sellers to make, there are some common ones that sellers must take care of to close the deal with a buyer. These include any structural defects and safety issues. A deteriorating roof, faulty electrical system, leaky pipes, or problems with the HVAC system may also be high up on the “fix it” list for buyers. If you do not either fix them before closing or offer a credit to the buyer to pay for the repairs later, you run the risk of losing the sale.
Not Required Repairs
On the other hand, cosmetic issues fall under the buyer’s responsibility. Additionally, light scratches on the floors, counters, or windows, slightly worn carpet, small discoloration of wood flooring from exposed sunlight, etc., falls under the “normal wear and tear” category. And those also become the buyer’s responsibility, not the seller’s. However, if you fix these things before you list your property, you may receive a higher sale price than if you do not fix them first.
Negotiating Repairs
Honestly, most repairs suggested in a home inspection report are up for negotiation. This rings especially true in a seller’s market. Sometimes, a buyer may only need a credit to take care of the big stuff. Other times, you might want to throw in some furniture or appliances. You may also want to include a one-year home warranty to help alleviate buyer concerns. Talk to your REALTOR® first to determine which items absolutely need to be addressed in order to close the deal with the buyer.
Sherri Lilienfeld, Apex Prime Realty, Your Source for Jersey Shore Real Estate