Understanding What Happens After the Inspection.
A home inspection can reveal issues that weren't obvious during a showing. Sometimes the findings are minor. Other times, they raise questions about safety, repairs, or the cost of owning the property.
But what happens when the inspection is finished?
For buyers and sellers, understanding the next steps can help keep a real estate transaction moving forward.
What Happens After a Home Inspection?
After the inspection, the buyer typically receives a written report describing the inspector's observations.
The report may identify:
Safety concerns and potential hazards.
Roofing, foundation, or structural issues.
Plumbing, electrical, heating, and cooling concerns.
Moisture intrusion or drainage problems.
Components needing repair, replacement, or further evaluation.
Routine maintenance and cosmetic conditions.
An inspection report is not automatically a list of repairs the seller must complete.
What happens next depends on the purchase agreement, inspection contingency, and negotiations between the parties.
Understanding the Inspection Contingency
An inspection contingency gives the buyer certain rights to evaluate the property's condition within an agreed period.
Depending on the contract, the buyer may be able to:
Accept the property in its current condition.
Request repairs or other changes.
Negotiate a financial adjustment.
Terminate the agreement under the contingency's terms.
The purchase agreement controls the available options, deadlines, and procedures.
Missing a deadline or failing to provide proper notice can affect a buyer's contractual rights.
What Can Buyers Request?
Buyers may request that the seller address inspection findings, but the seller is not automatically required to agree.
Common requests include:
Repairs: The seller agrees to correct specified conditions before closing.
Closing Cost Credit: The seller contributes an agreed amount toward eligible buyer closing costs, subject to lender and loan program limitations.
Price Reduction: The parties agree to reduce the purchase price.
Additional Evaluation: The buyer requests further investigation by a qualified contractor or specialist before deciding how to proceed.
Each option has advantages and limitations.
For example, a lower purchase price does not necessarily provide the buyer with cash to complete repairs after closing.
Which Inspection Issues Matter Most?
Not every inspection finding deserves the same attention.
A useful way to evaluate the report is to separate concerns into three groups.
Major Concerns
Structural defects, active water intrusion, significant roof problems, unsafe electrical conditions, or major mechanical failures.
Repair and Maintenance Items
Leaking fixtures, worn components, minor electrical repairs, and equipment that may need servicing.
Cosmetic and Preference Items
Paint, decorative finishes, minor wear, and features the buyer would simply prefer to change.
This approach helps buyers prioritize significant issues instead of treating every observation as equally important.
Negotiating Repairs Versus Credits
There are several ways buyers and sellers can resolve inspection concerns.
Seller Completed Repairs
The seller arranges for agreed work before closing.
Buyers should consider whether the agreement clearly identifies the required work, who will perform it, and how completion will be verified.
Closing Cost Credits
A credit can allow the buyer to arrange repairs after taking ownership.
However, lender restrictions may limit credits, and certain property conditions may need correction before financing can be completed.
Purchase Price Adjustments
A price reduction can address concerns about value, but it generally reduces the buyer's mortgage amount rather than providing immediate repair funds.
The best solution depends on the problem, the buyer's financing, available time, and the parties' priorities.
What If the Seller Says No?
A seller may agree to everything, offer a compromise, or decline the requested changes.
The buyer's options depend on the purchase agreement and whether the inspection contingency remains available.
Possible outcomes include:
Accepting the seller's response.
Making another proposal.
Proceeding without changes.
Terminating the transaction when permitted by the contract.
Neither side should assume that a request or verbal discussion automatically changes the purchase agreement.
Any agreed changes should be properly documented and signed.
Special Considerations for Financing
The type of mortgage can affect how inspection concerns are resolved.
For example, FHA and VA financing include property requirements that may result in certain repairs being necessary before closing.
Conventional financing can also involve lender or appraisal conditions.
A buyer's private home inspection and the lender's appraisal serve different purposes. A satisfactory inspection does not guarantee that the property will satisfy lender requirements.
A Practical Approach for Buyers and Sellers
For Buyers:
Read the entire inspection report.
Identify significant concerns before requesting minor improvements.
Obtain specialist opinions or estimates when needed.
Understand the repair costs and available negotiation options.
Follow the inspection contingency deadlines.
For Sellers:
Review the buyer's specific requests.
Consider whether the findings affect safety, financing, or future marketability.
Compare the cost of a reasonable resolution with the potential cost of starting over.
Keep repair agreements clear and documented.
The goal is not necessarily to negotiate every item in the inspection report. It is to understand the property's condition and reach an agreement both parties are comfortable accepting.
Learn More
For information about the inspection process and common findings, visit the American Society of Home Inspectors.
If you're preparing to purchase a home, explore my Home Buying Resources.
If you're planning to sell, visit my Home Selling Resources.
A home inspection provides information. What buyers and sellers do with that information is an important part of reaching a successful closing.