Home Inspection Items are not Fixed. What Seller & Buyers Can Do?

Ritu, it's important for listing agents to keep on top of the sellers' progress with repair items.  And you are so right about remaining in our "adult mode" when negotiating solutions.

Not that I'm a english major, but I think you have a duplicate paragraph section here.  

I've had this come up, more than once, and one just has to stay on top of it.  Great post.

Ritu Desai doesn't that situation just stiiiink?! It doesn't happen often, but when it does, it definitely takes both understanding (that there may be a misunderstanding or miscommunication between homeowner and their vendors or whatever the case may be) and persistence (that is has to be done! Contractually speaking.) It's usually done, though, thank goodness.

Ritu, thank goodness this doesn't happen very often, but you've given some good advice for when it does. 

How about just getting a credit for the necessary repairs and let the new owner get things done on their own terms.  If the seller is left to do it it is always going to get done in the cheapest way possible just to keep the deal going.

I don't believe the prepaid receipt is a solution that is allowed anymore.  

It does happen. The best way to avoid it as you mentioned is to schedule a walk through few days before closing. I usually set it 5 days prior COE. 

Great advice!!!

The first step for the buyer/seller is to hire a contractor to get an estimate. Based on the estimate the seller can compensate the buyer. If the lender does not allow escrows,  the home seller can pre-pay the contractor for the job. The job can be completed after the closing under buyers supervision.

Luckily this doesn't happen too often, but when it does, argh! As you point out, there are ways to address the problem.

I just went through this and my fail safe is a conversation with my client that takes place before, during and after the event. No gray areas or games here!

It's essential for the agents to stay in touch so you know about the progress, and get receipts for all work agreed to. Since there would be a written agreement to do the repairs there are remedies, but one would hate to go that route

Last minute items are little tricky to negotiate now, but the easiest by far is having a check written to the contractor but provided to the buyer at closing for the repair to be done after close. We have had a few of these recently. Better to stay calm and find a solution that works for everyone. 

We always have to negotiate towards a resolution that works for both sides. Sometimes those negotiations are not fun. Typically we require receipts from a licensed contractor performing the repairs and some sellers have issues paying more for such contractors instead of their Uncle Bill to repair something major like electrical, HVAC, or plumbing. It's amazing that they think saving a little money is worth compromising the deal on the table. 

We ask for a paid receipt and a "Lien Waiver" from any and all contractors who have worked on repairs. The waiver is a sign-off by the contractor who waives his right to collect monies from those repairs after the closing. In our state, it's an additional layer of protection.

Asking for Credit is typically better than asking for repairs which also helps with any close to closing issues for repairs.  If you do ask for repairs, always specify completed by professional and ask for receipt.  Always walk-through and verify repair items have been compelted prior to closing.  Again, credit for repair is the best action to eliminate this issue.