Sometimes buyers see things that look really bad, because, of course, the home inspector points it out.
Imagination can be a good or bad thing. We have a tendency to conjure up in our minds things that might be worse than the reality!
The scorch looks bad, but it may be easier to fix than they think.
There could be many things wrong here:
> The wiring could be bad.
> The GFI that controls this receptacle could be broken and water got into the connection causing it to fritz as it wasn't properly shut off.
> The receptacle could be bad.
> The cable servicing it could be bad.
> The thing that was plugged into the receptacle was bad, and the GFI did not work as it was supposed to.
I suppose we could go on.
That's a lot of bad!
But the repair is probably easier than anticipated by the buyers or sellers.
Hopefully there is enough cable left inside the wall to trim it off and make a new connection to all new stuff!
Nonetheless, it appears on the inspection report.
"It" will have to be made it right!
I don't know that they will do anything about the siding having charred and melted, but that is not the major concern here.
My recommendation: certainly when things like this are discovered on a home inspection it must be evaluated and repaired by a professional. Once the buyers have a receipt from a bona fide electrician that says it was repaired and now functions correctly they are covered. And all worries cease. The scorch looks bad, but it may be easier to fix than they think.
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