After The Inspection: What Should Buyers Ask For?

Buying a home is a complicated process, and each home transaction is unique. As a result, it can be tough to know exactly what a buyer should ask for after an inspection has been completed but before the transaction has closed. As with all aspects of the home buying process, the answer is going to be dependent on a number of factors, all of which the buyer must understand before entering into negotiations over the inspection's results. Learn what you should think about after the inspection, and what home buyers should reasonably ask for between inspection and close.

How Does The Home Inspection Come Into Play?

Before understanding what a buyer should ask for after a home inspection, it's critically important to understand exactly what the home inspection is. The home inspection has its legal roots in the home sale contingency process. In almost all purchase offers, the buyer's offer is contingent, meaning that certain conditions must be met before the offer to purchase becomes a legally enforceable contract. If the seller accepts the offer, they accept it subject to the contingencies outlined in the offer itself, meaning that both parties understand that the offer is not final until those contingencies are satisfied. If the contingencies are met but the buyer still withdraws from the deal, the buyer is in default, and typically forfeits their earnest money deposit.

In Illinois, there are six common contingencies that buyers usually include in a purchase offer. These include: the attorney review contingency; the financing (or mortgage) contingency; the title contingency; the appraisal contingency; the home sale / home close contingency; and finally, the home inspection contingency.

The home inspection contingency generally provides that the buyer has a fixed amount of time to inspect and approve of the condition of the property. If the buyer does not approve of the property's condition, they can withdraw from the purchase without penalty or the loss of the buyer's earnest money. 

Under the strict terms of the inspection contingency, neither party is generally obligated to discuss or negotiate repairs or further work. However, in practice, the buyer and seller usually use the report of the home inspector as a jumping-off point for discussions about potential repairs the seller can make to allow the buyer to approve the sale.

Common Issues Identified In A Home Inspection Report

The home inspection is a comprehensive visual assessment of the easily accessible systems and components of a home. The inspector searches for common problems with the home, including assessing the condition of the foundation, structure, and roof, and checking to ensure the proper operation of the home's HVAC, plumbing, and electrical systems. Although an inspection cannot address every issue — components inside the walls or in inaccessible areas are not part of a standard home inspection — it can identify common problems that can be expensive to repair down the road, including a roof that leaks or may need to be replaced in the near future, an older HVAC system that is in disrepair, drainage or water damage issues, or signs of pest infestation and damage. 

What Repairs Should Buyers Ask For?

As buyers consider making requests for repairs, it's important to keep in mind that the seller is not required to make any repairs, even if it is customary for the parties to negotiate regarding fixes. If the buyer and seller cannot come to an agreement regarding remediations. For buyers, determining which repairs or concessions to seek involves weighing a number of factors. 

First and foremost, a buyer should consider whether a given repair or price concession is, in fact, a dealbreaker. Issues such as extensive pest damage, a roof that needs immediate replacement, or foundation damage that will require the home to be lifted and leveled, an expensive and risky process, can all jeopardize a buyer's financing or otherwise constitute reasonable reasons for a buyer to back out of a deal. Structural repairs, as well as those remediations that have a direct impact on health and safety, are commonly negotiated and it is customary for sellers to make these fixes.

Beyond repairs that can cause a deal to fail, buyers should consider the state of the market and the likelihood that a seller can get a better deal simply by relisting the home. A seller who sees better deals on the horizon may be less likely to make concessions, and a long list of demands may cause a deal to fail. By contrast, in a slower market environment, a seller might be willing to make even cosmetic repairs to keep a deal from failing. 

For the most part, it's best for buyers to maintain focus on the kind of issues that can either result in expensive repair bills down the road, or that can have an immediate impact on the health and safety of the home's residents. Arguing over cosmetic fixes or demanding a seller repair an issue that is the result of ordinary wear and tear can cause ill will to develop between the parties and lead to a more difficult escrow and closing process. As with all aspects of a real estate deal, it can help to put yourself in the other party's shoes and try to approach requests with an eye toward a reasonable, respectful negotiation process.

When Home Means More, You Need A Team With More To Offer

As you navigate the turbulent waters of escrow and home negotiation, it helps to have experts with the right experience to make sure you're getting everything you're entitled to. Whether you're buying or selling your Chicagoland home, we know that home is about so much more than just four walls. Buying or selling a home is a big deal, and our homes have never been more important. That's why your local Baird & Warner agent is with you at every step of the way, from finding the perfect home to connecting you with local experts in mortgage and title. Whether it's the beginning of a story or the end of a chapter, we're here to help.