What To Do If Your Dream Home Fails Inspection
As a buyer, it’s easy to become emotionally invested in a home, especially when you find one that meets all of your criteria. However, it’s so important to ensure your offer includes a home inspection contingency and to keep your emotions in check until the home inspection report comes back. A home may seem like a dream come true on the surface, but the home inspection report may transform it into a nightmare.
A home inspection usually takes place within the first 10 days under contract. The report will usually outline minor defects to major structural issues and everything in between. If there are serious issues such as foundation damage, roof damage, or mold in the basement, you’ll likely need to negotiate with the seller on how to remediate the issues. If your dream home fails the home inspection, that doesn’t necessarily mean all hope is lost. Don’t panic. Instead, a good real estate agent can help guide you through these steps:
- Request for the Contingency Period To Be Extended
If it turns out the home has numerous problems, you’ll likely need some time to wrap your head around them. First thing is first — ask your real estate agent to request to extend the contingency period. If granted, you’ll have some extra time to carefully calculate the costs of the necessary repairs.
- Determine Your Ideal Solution
Just because a home fails the inspection contingency doesn’t mean the deal has to fall through. In most cases, it just means you and the seller will need to negotiate a solution. Once you’ve reviewed the report and calculated the repair costs, determine if you want the seller to have the repairs completed before closing or if you’d rather close sooner and have the seller reimburse you for the repair costs. Your real estate agent can help you with the negotiation process.
- Consider how much you’re Willing to Invest
If the seller flat out refuses to make the repairs or reimburse you for the costs, then you’ll need to seriously consider how much you’re willing to pay for the home. If it’s truly the home of your dreams and you have some extra funds to invest, paying for the repairs out of pocket may be worth it to you. If not, then be prepared to walk away. Remember, during the contingency period, you still have the opportunity to walk without losing any money. Luckily, in the majority of cases, buyers and sellers can reach a resolution.
While it’s true that a failed home inspection can sometimes derail a home sale, deals are more likely to fall through due to an unwillingness to negotiate on how to remediate the situation. The best thing you can do is keep emotions in check, calculate the cost of repairs, and attempt to negotiate with the seller. Depending on the cost and the severity of the repairs, there is a good chance you can come to a resolution before walking away from the deal.
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