Understanding Your Home Inspection: Negotiating With The Seller Regarding Necessary Repairs

Buying a home is an exciting time, but stress levels can rise when a home inspection shows a number of problems with the home. While a person selling the home won't want to put money into a home they are about to leave, a buyer doesn't want to move into a home that needs immediate repairs. It is generally up to the buyer and seller to negotiate repairs in order for the sale to go through. As the buyer, you can say no to the purchase if you are not happy with the home inspection. This gives you some bargaining power if the seller wants to get rid of the property. 

If the Mortgage Is Through the Federal Housing Authority

When the home buyer has secured a mortgage through the Federal Housing Authority (FHA) program, the final approval for the loan will be contingent on the inspection. This does not mean that the home seller is automatically in charge of any repairs in order to get the mortgage finalized. If the repairs are small, such as installing a handrail, it would make sense for the seller to just fix the problem in order for the sale to go through. If the repairs are more extensive and the seller won't fix them, the mortgage can be in jeopardy. The buyer can agree to taking over the repairs, but this can get complicated. Some repairs can be added to the total mortgage, making it easier for the borrower to agree to fixing the repairs.

When the Septic System Fails

If you are buying a home and you learn the septic system is failing upon inspection, this is not an automatic repair assigned to the seller. The problem for the seller is that whoever owns the property has a set number of days to fix the septic system. If the system has failed, most mortgage companies won't approve the loan. Although there aren't restrictions on selling a property with a failed septic system, the buyer will be unable to finance the property until the system is fixed or money is set aside and put in escrow for the repair. This gives buyers an advantage when negotiating the repair of a septic system.

When you are buying a home, it is best to work with a Realtor in your area. They will understand your negotiating powers when it comes to home repairs, and will be able to guide you along the process. Contact a company like Mary Couser: Galbreath Realtors to get started.


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