Last night I got an email from my seller asking "What happens after the the buyer completes the home inspection?"
When I notified them the inspection was scheduled I explained the buyer and agent would review the inspection report and address any requested repairs on an Amendment and get it to me to present to them for review. It dawned on my seller something was going to happen now that inspections are in process today and just wanted further clarification. This is a very natural question to ask to further understand the process.
My reply to their question was: Remember we are in the option period and during that time the buyer needs to complete all inspections on the property. Once they have reviewed their inspection report they will discuss with their agent what repair concerns they have and request any repairs through an Amendment to the contract. Then the buyer's agent will get the Amendment to me so I may present to my sellers and we can review the requests. It's what I call "negotiation time." The seller can agree to the repairs if they appear reasonable, or can agree to make some of the repairs or respectfully decline to do any repairs.
The one fact that the seller must keep in mind is the buyer has the right to terminate for any reason during the agreed upon option period per the contract. All parties must agree to the repairs requested in writing on the Amendment. A seller may offer a certain dollar amount to be used for closing costs for the buyer in lieu of repairs. Some buyers may elect to take this option.
There are many buyers (especially if relocating) that don't want to find vendors later and want the repairs completed. We keep a good list of qualified vendors for a seller to use to complete repairs if they don't have their own. The buyers may choose to re-inspect or accept the work done with paid receipts from vendors.
Repairs are negotiable. In order for the negotiated repairs to be effective, the Amendment must be signed by all parties by midnight of the last day of the option period. If a buyer terminates the contract it must be done on the last day of the option period by midnight or per time stated in the contract.