Your inspection report came back and it is longer than you expected. That is normal. Most reports are long, and most of what is in them is minor. The bigger question is what you ask the seller to do about it.
In Texas you have a few ways to handle repairs. You can ask the seller to fix specific items before closing. You can ask for a seller concession, which is money the seller puts toward your closing costs. Or you can ask for a lower purchase price. A lot of deals end up with some combination of these.
In Texas you have a few ways to handle repairs. You can ask the seller to fix specific items before closing. You can ask for a seller concession, which is money the seller puts toward your closing costs. Or you can ask for a lower purchase price. A lot of deals end up with some combination of these.
Pick Your Battles
The seller does not have to fix anything unless they agree to it in writing, and sending over the whole report with "fix everything" rarely goes well.
We tell our clients to focus on the things that actually matter:
• Safety issues
• Major systems failing or close to it — roof, HVAC, water heater, plumbing, foundation
• Active leaks or water damage
• Termites
• Anything your lender or insurance company says has to be addressed before closing
Cosmetic items, small maintenance items, and things that are simply older than today's building standards usually are not worth the fight. Your agent can help you figure out what is reasonable to ask for in this market. For help separating the serious findings from the noise, see how to read your inspection report.
We tell our clients to focus on the things that actually matter:
• Safety issues
• Major systems failing or close to it — roof, HVAC, water heater, plumbing, foundation
• Active leaks or water damage
• Termites
• Anything your lender or insurance company says has to be addressed before closing
Cosmetic items, small maintenance items, and things that are simply older than today's building standards usually are not worth the fight. Your agent can help you figure out what is reasonable to ask for in this market. For help separating the serious findings from the noise, see how to read your inspection report.
When the Seller Makes the Repairs
Having the seller handle repairs can make sense. You do not need extra cash after closing, and some repairs have to be done before closing anyway because the lender or insurer requires it.
The problem is you do not get to pick who does the work. The seller wants to check the box as cheaply as possible, and what we see over and over is sellers hiring the cheapest labor they can find. Sometimes that is a handyman doing electrical or plumbing work he is not licensed for. Fresh paint and new caulk can also cover up what was really done.
If you go this way, write out exactly what is being repaired in the amendment, and ask the seller for:
• Permits, for any work that requires one
• Invoices or receipts from whoever did the work
• Any warranties, transferred to you
• The contractor's name and license number, for trades that require a license
The problem is you do not get to pick who does the work. The seller wants to check the box as cheaply as possible, and what we see over and over is sellers hiring the cheapest labor they can find. Sometimes that is a handyman doing electrical or plumbing work he is not licensed for. Fresh paint and new caulk can also cover up what was really done.
If you go this way, write out exactly what is being repaired in the amendment, and ask the seller for:
• Permits, for any work that requires one
• Invoices or receipts from whoever did the work
• Any warranties, transferred to you
• The contractor's name and license number, for trades that require a license
A Re-Inspection Verifies, It Does Not Certify
We do offer re-inspections, and they are worth doing. But a re-inspection is a visual check to see whether the items look like they were addressed. We cannot certify a repair or guarantee it will hold up. The permits, invoices, and warranties are what protect you if something fails later.
That said, verifying is not optional in our view. We have scoped a sewer lateral that was reported as cleared and found otherwise. "It was fixed" is a claim until someone looks.
That said, verifying is not optional in our view. We have scoped a sewer lateral that was reported as cleared and found otherwise. "It was fixed" is a claim until someone looks.
When You Take a Concession or a Lower Price
Taking a concession or price reduction lets you hire your own contractor. You can get a few bids, check reviews, and have the work done right. There is also less to coordinate before closing.
A few things to know:
• A concession usually comes off your closing costs, so it does not put cash in your pocket. You will need the repair money yourself after you move in.
• Loan programs cap how much the seller can contribute, so check with your lender before you ask.
• A price reduction gets around that cap, but it only lowers your monthly payment a little.
Get real estimates during your option period instead of guessing. If you guess low, the difference comes out of your pocket after closing. If you want cost figures attached to the findings themselves, we offer repair estimates as an add-on to the inspection.
And once you have the money, do not make the same mistake those sellers make. Hire licensed people, pull permits where they are required, and keep your paperwork.
A few things to know:
• A concession usually comes off your closing costs, so it does not put cash in your pocket. You will need the repair money yourself after you move in.
• Loan programs cap how much the seller can contribute, so check with your lender before you ask.
• A price reduction gets around that cap, but it only lowers your monthly payment a little.
Get real estimates during your option period instead of guessing. If you guess low, the difference comes out of your pocket after closing. If you want cost figures attached to the findings themselves, we offer repair estimates as an add-on to the inspection.
And once you have the money, do not make the same mistake those sellers make. Hire licensed people, pull permits where they are required, and keep your paperwork.
So Which One Should You Ask For?
It usually depends on the item.
• If the lender or insurance company requires the repair, or you do not have money set aside for after closing, seller repairs make sense.
• If it is a big system like the roof, HVAC, or foundation and you want it done right, a concession or price reduction is often the better deal, because you control who does the work.
• If you are planning to remodel that area anyway, take the money.
• If the lender or insurance company requires the repair, or you do not have money set aside for after closing, seller repairs make sense.
• If it is a big system like the roof, HVAC, or foundation and you want it done right, a concession or price reduction is often the better deal, because you control who does the work.
• If you are planning to remodel that area anyway, take the money.
A Few More Tips
Schedule your inspection early in the option period so you have time to get estimates and negotiate. Our guide to the inspection contingency explains how that window works in Texas.
Keep your request short and focused.
Be specific about the work you expect. "Repair roof" could mean a small patch or a full replacement.
Get every agreement in a signed amendment.
Keep your request short and focused.
Be specific about the work you expect. "Repair roof" could mean a small patch or a full replacement.
Get every agreement in a signed amendment.
If you have questions about anything in your report, give us a call at (915) 209-2332. We are happy to go over it with you. Inspector Pros inspects homes throughout El Paso TX, Las Cruces NM, and surrounding communities, 7 days a week — schedule online here.