Property inspections are common in most real estate transactions and are recommended even in the hottest markets. The question becomes what do you do when the inspector’s report comes back with items listed in need of repair. Whether you’re the buyer or the seller, just keep a cool head and approach the repairs logically.
Focus on the habitability items — there is a problem with the furnace, a leak from the roof, or a plumbing leak, for example. Minor repairs are not the ultimate goal of the inspection. Major repairs should be handled quickly in order to avoid any delays in the closing.
The buyers may ask the seller to make the repairs or secure quotes for the repairs and ask the seller to provide that amount to the buyer at closing so the buyer can have the repairs completed later. Sometimes the buyer’s lender will require the repairs are made prior to closing. After the repairs are completed, the lender will check the repair work prior to setting the closing date.
Either party may complete the repairs. If the lender requires repairs be completed prior to closing and the seller is unable to complete the repairs, the buyer may decide to do the work themselves. If the buyer’s FHA loan requires the property to be free of peeling paint and the elderly seller is unable to do the painting, the buyer may elect to do some touch up painting before the FHA appraiser goes out to check the property.
Once agreed to, the final terms of the repair agreement are put in writing and then signed and dated by both the buyer and seller. Whoever accepts the responsibility for the repairs should have paid receipts for all of the work completed and provide them to the other party. Proper documentation of this process will protect each party and help ensure a smooth and successful closing.
Contact the Kathy Henne Team RE/MAX FINEST by calling (937) 778-3961.