Jan. 27, 2023 What happens if my home inspection reveals costly repairs?

If your home inspection reveals expensive repairs, you may be wondering what to do next. Unfortunately, it’s not an easy answer, as there are pros and cons for each of the possible courses of action. To decide the best direction for yourself, read on to learn more about the consequences of these findings.

Negotiate With the Seller

The first step in dealing with costly repairs found during a home inspection is to negotiate a lower price with the seller. Let them know that you are aware of the issues and would like them to reduce the cost of the home or at least agree to foot some of the repair bill. Some sellers may be willing to make concessions while others may be firm on their original asking price.

Pay Out-of-Pocket Expenses

Depending on your finances, you may decide to take care of any necessary repairs yourself if they don’t eat up too much money out of pocket. This approach can be beneficial as it allows you to keep total costs low and have complete control over who does any repair work in your future home. It also avoids having to make counteroffers or face delays when negotiating with a seller over repair costs and terms.

Include Repairs in Closing Costs

Another option is asking for closing cost credits from the seller so you can cover repair bills at closing time instead of paying out-of-pocket expenses upfront. In this scenario, a lender will assess what kind of credit will be acceptable before agreeing to finance any part of your purchase; including potential repair costs into closing costs can help defray amounts paid by either party on day one if both agree on an arrangement accordingly.  

Walk Away From Negotiations

Finally, you should walk away if these costly repairs feel overwhelming or prohibitively expensive – especially since they could kill off any profit margin once a sale is finalized! The most important thing is that you weigh all alternatives carefully before making such a dramatic decision as this one needs careful consideration from both parties involved in order ensure everyone is satisfied with outcome reached at end negotiations.