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Should The Seller Fix This?

By
Home Inspector with Structure Tech Home Inspections

"Does the seller need to fix this?"  This is a common question I'm asked when I find defects at houses that I inspect, and the answer is always no. When I find defects during a home inspection (and I always find defects), there are four ways for the buyer to deal with them: Do nothing, have the seller do repairs, have the seller fund repairs, or cancel the purchase. I'm going to discuss these different options, and go over why some are better than others... in my opinion, of course.

Do Nothing. This is usually the best option for buyers. When buying a used home, buyers shouldn't expect everything to be perfect, because it never is. Walls get damaged, faucets leak, appliances age. This doesn't mean buyers shouldn't address defects after they've bought the house, but it's unrealistic to expect sellers of used houses to fix every little defect. Asking sellers to address a long list of minor repairs will often make the seller feel defensive about their home, make the buyers look petty, and make the home inspector get labeled ‘nit-picky'. Bad feelings all around :(. This typically comes from a misunderstanding of what a home inspection is for; home inspections are meant to allow the buyers to make an informed decision about their potential purchase, not to give sellers a long list of little repairs.

Ask The Sellers To Make Repairs. This is usually, but not always, the worst option. If a seller has performed improvements at their home and it was done wrong, why would they get it right the second time? When a buyer asks a seller to repair things, they are basically making the seller the general contractor for their new home. I don't think this makes any sense.  The seller has no motivation to do high quality work, and I know from experience that the work is usually done wrong, or the work will be sub-par and the materials will be the cheapest possible. It's a very frustrating situation for buyers when I go out to verify repairs the day before closing and nothing is done right.  What happens now?   If the seller is going to do repairs, language should be included in the purchase agreement that requires licensed contractors to do the work, permits pulled and inspected by the authority having jurisdiction (the city), and proof of both should be given to the buyer well in advance of the closing date.  Just about anything related to plumbing, electrical, or HVAC requires a permit, and much of the work performed by carpenters also requires a permit.  This should be done for projects of any size; if a project is too small to require a permit, why have the seller do it at all?

Foundation wall caving inAsk The Sellers To Fund Repairs. This is usually a much better option than having the seller do repairs.  The buyer can hire their own contractors to do the work, and they can oversee the whole project after they own the house.  This is definitely the most logical approach, but it doesn't happen as much as it should because emotions get in the way.  Many home buyers have a mindset that they're not getting a good deal if they buy a house and need to do repairs right away, no matter what the price is... and family members help perpetuate this idea, especially fathers (I'll probably do it too someday).

Cancel The Purchase. This happens when the buyer decides there are too many problems with the house and they don't want to spend their time dealing with repairs, or when buyers and sellers can't come to an agreement.  In most instances when a deal falls apart because of an inspection, it happens because neither the buyers nor the sellers are aware of a major problem, and the buyers don't want to spend their time and energy overseeing repairs.

Sometimes issues come up during an inspection where the extent of the damage or the cause of the problem is not always apparent, and these are times when a buyer should definitely not wait until they own the home to undertake repairs. 

Reuben Saltzman, Structure Tech Home Inspections - Email - Minneapolis Home Inspector

RELATED POSTS:

Inspect The Common Areas on Townhomes?  Yes.

I Didn't Kill The Deal, The House Did.

POST EDIT  3/4/09

I've received a number of comments that made me realize I wasn't clear about the question that buyers ask - "Does the seller need to fix this?"  This question is typically asked by first time home buyers who confuse me with a code enforcement official.  I always say "No" because I have no authority while performing private inspections.  I can't make the seller do anything.

When buyers ask me "Should the seller fix this?", I recommend they ask their agent for advice.  This isn't my realm, and I'm not in a position to give an educated answer. 

Comments (76)

Joetta Fort
The DiGiorgio Group - Arvada, CO
Independent Broker, Homes Denver to Boulder

My fave inspector always says to the buyer, 'this is the problem, and this is how you fix it'. So the buyers don't feel like it's all a big mystery, or too much for them to handle.  They feel a lot less frightened by the inspection, and a lot more confident that they made a good decision.

Mar 03, 2009 01:33 PM
John Douglas
Berkshire Hathaway HomServices Partners Realty - Bowling Green, KY

Reuben,

Good post you stated basically what i tell my buyers and sellers in home inspections sometime

you have to have the good discussion with the other agent as well to review the process two

Realtor's working together will eliminate a lot of confusion.

 

Mar 03, 2009 01:39 PM
Tim Bradley
Contour Investment Properties - Jackson Hole, WY
Commercial Real Estate Expert in Jackson Hole, WY

Certainly the price of the house should reflect the condition of the house, but sometimes buyers want sellers to fix the defects/faults because they want the cost of the repairs rolled into the loan, as the buyer may not have the cash to make the repairs themselves.

Mar 03, 2009 01:46 PM
Patrick Burno
CENTURY 21 - Charlotte, NC

My favorite addendum that fits this situation is the "As-Is" Addendum. Why Buyers might think that the resale house that is 20 years old is the same as a brand new house is really something. It further amazes me that they think they can renegotiate the purchase contract after the home inspection. Real estate purchase transactions would be far easier if an "As -Is" addendum was included in all of them as standard practice. The buyer being eligible for an earnest money refund if they decide they do not want to follow through with the deal is part of the the addendum.

Mar 03, 2009 02:21 PM
Linda DeRusha
Coldwell Banker Advantage - Garner, NC
Broker/Realtor, ABR,ASP,CDPE

Reuben,

Great post. 

You would be amazed how many problems come up related to home inspections and repairs that need to be made. Every realtor has at least one horror story involving a home inspections. This is one area of buying and selling real estate that can be very confusing.  The buyers always want every little item fixed and of course, the sellers don't want to repair anything.

This is when the realtors really earn their commissions working out the details.

Mar 03, 2009 03:05 PM
Jenny Durling
L.A. Property Solutions - Los Angeles, CA
For Los Angeles real estate help 213-215-4758

"Do Nothing" is the best option?  For minor issues sure, but for major system problems that would not have been determined without benefit of an inspection I would always recommend the buyers seek credit toward closing costs.

Mar 03, 2009 05:02 PM
Anonymous
Jim Morrison, Home Authority of Massachusetts

Reuben

Good article! As a licensed home inspector in Massachusetts I'm often asked about who is responsible for handling the repairs of defects that crop up during an inspection. This is usually followed up with a question as to the cost of the repairs. Here I have to be a diplomat, since we can't be the person who makes the call about repairs or the costs. I defer to the Realtor to advise them as to how to approach needed repairs. To be truthful, the majority of minor defects turned up in a home inspection can usually can be fixed with a quick run to a home center to pick up some items and a buyer can handle those little fixes themselves without muddying up the waters creating a deal killer situation that loses the house for them. I always tell potential buyers that no house is ever perfect, even newly built ones. When I turn up a major defect such as a necessary roof replacement, unsafe wiring, or a heating system that is due for replacement I tell the buyer to discuss their options with their Realtor, who usually will ask for a discounted price to allow the buyer to hire their own contractor to do the work. I try to put a positive spin on it by saying "you might be able to get the house with money leftover for the new roof, or furnace, etc, but that's the Realtor's job to work that out, not the inspector. I stay out of the negotiation, since this is not my call.

Of course I know full well that my report has often become a negotiation tool to beat down a seller's asking price.  If more sellers were smart enough to have their homes "pre inspected" before the sale to know what the buyers will be finding,  a lot of the negotiations could be avoided. Some real estate offices are simply demanding a pre listing home inspection to avoid wasting time on a closing that blows up over an inspection report.  It can be a positive thing of there is a pre listing inspection and the items turned up have been repaired or replaced recently. In other words, the house was "debugged" of defects before the buyer's inspector got there.

Mar 03, 2009 10:53 PM
#63
Scott Harrison
Sea Shore Realty - Virginia Beach, VA

Rueben,

   This was a good read.  It brings a little more information to the table about how to counsel our buyers during the home inspection process.  Thanks for the information.

Scott

Mar 03, 2009 11:20 PM
Anonymous
Marshall Brown
As a home inspector I try to report to all of my clients what I find, what it means in terms of problems ignoring it might cause and what to do about it. This latter information is usually in the form of having further evaluation by a professional in the appropriate field in complex situations or suggestions specific to the problem of service/repair/replace in simpler cases. This is a little subjective since something that might seem daunting to a novice may be trivial to a home handyman. I agree that the "What to do?" discussion is best held between the client and their agent but I have had Realtors come back to me for suggestions. I use the same scenarios you suggest. There is one alternative that is tried from time to time, "Have the inspector pay for it." I have had this come up with a water heater that failed after the inspection, and even a ceiling fan that was improperly installed AFTER the inspection. I am also criticized occasionally for reporting truly small items such as dripping faucets and doors that do not properly latch. I agree that these are minor items but subtract the cost of having a service person correct and you have zero profit for doing the inspection. Unfortunately all reports appear to need to address some self defence issues, sad but true.
Mar 03, 2009 11:35 PM
#65
Anonymous
David Andrick - Pres. A1 Home Inspection Svcs.

Reuben,

 

Good post!   It puts things in the "proper perspective" and that's the real job of the home inspector.  I spend the first ten minutes before I jot note #1 at the inspection going over what I am going to do and NOT going to do.  So my clients (and any seller or realtors present) know what to expect that day and after that day (i.e. uncompleted lab reports).

Even if the occaisional realtor has read me the "as is, riot act disclaimer," I always tell my clients to have any major or minor issue THEY feel needs to be addressed directed back through their realtor back to the seller for "consideration for potential remedy."   New construction, resale, short sale, foreclosure... attached, detached, single wide... major issues especially need to be addressed and I leave it up to the agents and interested parties to seek a common ground and I stay out of it.... but keep myself available for further consultation if need be.

That being said, I do pickup some new business from realtors who may not have met me before that particular inspection or they may at least put me on their "list".   It's usually the ones who have seen too many deals killed by overstepping inspectors who cite code or "ball park" estimate repairs.  Neither of which are in our purvue of the inspection process. 

In the end, all the people present at the inspection are on the same sheet of music.   You'd be amazed how often I hear back from my client or their agent saying how the selling side ended up fixing or crediting certain repairable items and the deal closed and everyone was happy.

Mar 03, 2009 11:38 PM
#66
Tina Gleisner
Home Tips for Women - Portsmouth, NH
Home Tips for Women

Great article, so I went ahead and expanded for readers on my web site (will send you separate email).

Mar 04, 2009 02:28 AM
Anonymous
Rebecca Byers

Wow what a great post.  As a Realtor, I wish my current buyer had read this.  Buyers are getting great prices and they are asking for more because the stigma of an underpriced home indicates to them there is a problem, when the real problem is just financial.  I printed your post and gave it to my buyer who handed me a 21 item list he wanted done, most all were asthetic.  I am his representation and it embarassed me to send it to the seller.

Mar 04, 2009 03:05 AM
#68
Deanna Casalino
Realty World J. Pavich R.E. - Estero, FL
Fort Myers Florida Homes,

Defects in the home for sale are just a negotiating tool that provides leverage.

Mar 04, 2009 03:13 AM
Reuben Saltzman
Structure Tech Home Inspections - Minneapolis, MN
Delivering the Unbiased Truth.

Valerie - If ever asked, I would be hesitant to opine on what is 'normal' operating condition.  Something easier to answer might have the language 'safe' and 'proper'.  It's 'normal' for a 30 year old furnace to have a cracked heat exchanger :-)   Just something to think about.  Otherwise, I like your approach.

Jenny - I agree, major items would definitely not fall under the "Do Nothing" category.  I would guess that I make about 20 - 70 suggestions to buyers during every inspection, and I note all of these things in my report.  Most of these fall under the "Do Nothing" category - it's homeowner maintenance stuff that buyers typically shouldn't be asking the seller to address.

Marshall - I hear you.  I also note minor things like dripping faucets and doors that don't latch as a courtesy to my customer.  I don't include them in my 'summary' report, but I do note this stuff in the body of the report.  Our customers always appreciate this.

Tina - I checked out your web site, thank you!

Rebecca - I know the type of buyer you're talking about, they inspired me to write this post.

I see two common ideas from everyone that could alleviate a lot of hassle after the inspection.

  1. Have the seller get a home inspection before putting the house up for sale
  2. Have a chat with the buyer before the inspection to let them know what a home inspection is all about.  The home inspector shouldn't be the one telling a buyer not to make petty demands.  The buyer should know this before the inspection.

 

Mar 04, 2009 01:53 PM
Anonymous
Jill Nelson

Great tips, we are trying to sell our older home that has no major issues but I've felt everything has to be perfect! Now I feel better and so worried about every little thing. Thanks

Mar 06, 2009 03:32 AM
#71
Jim Frimmer
HomeSmart Realty West - San Diego, CA
Realtor & CDPE, Mission Valley specialist

There's another option other than the four you have listed. You can still buy the home and have the repairs done yourself with your own money. While doing nothing is an option, it's by far not the best one, and just because the Seller will not do the repairs or fund the repairs doesn't mean that the house is not worth purchasing.

Mar 10, 2009 03:15 AM
Reuben Saltzman
Structure Tech Home Inspections - Minneapolis, MN
Delivering the Unbiased Truth.

Jim - I didn't mean to imply that problems found with the home should not be fixed; I was just listing the courses of action that a buyer can take before they own the home.  The buyers should definitely make all of the repairs after they own the home!  Thanks for reading.

Mar 10, 2009 02:27 PM
Kathy Booth, Setting the Stage
Setting the Stage - Newmarket, ON
Home Staging and ReDesign Professional

Good explanation and information.

Mar 12, 2009 09:41 AM
Jim Mushinsky
Centsable Inspection - Framingham, MA

Hi Reuben.  A very popular topic!   Many good points and comments.

In my opinion. - No.

When I sold my house, and I had the request for "repair funds", I said No.

My house got to its present condition because of my choices.  My house was listed at a price representative of its value.  The condition of the house was one of the factors in determing its listing price.

I then had my realtor go back and ask the buyer how the inspection changed their value of my house.  I was not about to start a process of getting repair estimates to come up with an agreeable amount for "repair funds". 

I (the seller) did not make repairs.  I (the seller) did not fund repairs.  I (the seller) had my real estate agent work with their agent on getting to the change in value based upon what they discovered in the home inspection.

I wanted to add this comment to your blog since I feel it is not in one of your four categories.  The buyer did something.  The buyer did not cancel.  The buyer did not ask for repairs.  The request for repair funds was rejected and we moved on to a discussion in home value.  My realtor did a wonderful job representing the value of my home to the buyer.  The buyer did not get any "repair funds" from the seller.

In the end, we were all happy.  The seller and the buyer.  I feel one of the key components to happyness on both sides is that both sides hired professionals (buyers agent, sellers agent, home inspector, and lawyers) and both sides agreed to the value of the transaction.  The value of the transaction does include the value of the professional services.

 

 

Mar 13, 2009 01:14 PM
John Coker
Virginia Beach, VA
Virginia Beach Home Inspector

Except for safety hazards, what is major, minor, medium or do nothings?

 

Is a leaking sink drain a major or minor thing?

 

If the buyer is the best plumber on the east coast, it's probably not a big deal.

But to that lady who just had her new $10,000 custom cabinets seriously damaged by a water leak, it could be a VERY major thing.

My point is, I don't think we are there to say something is major or minor (again Safety is different). I tell my clients, I'm there to provide the facts and to give them the information they need to make the decision. They can decide if something is major or minor, not me.

We could go round and round with examples that different people would classify as something different. Missing screws in an electrical panel, missing caulk around the 2nd floor tub, a leaky kitchen sink. Yes, a roof held together by tape and bubble gum can of course be more expensive than missing flashing over a window. But almost anything, if not given the attention it deserves can become a HUGE and EXPENSIVE problem. Some just take longer than others. Some are not as visible as others. Some don't scare as much as others. 

At my pre-inspection brief I tell my clients just that, I give you the tools to make the decision.I don't give repair estimates nor do I suggest what should be repaired or not, nor who should do it. When I am asked what would I do if I was buying the house, my simple reply "I don't know, my wife hasn't told me my opinion yet"

Of course, in principle I agree with your classifications in your post.

 

Again, safety hazards I do point out as such.

May 15, 2009 06:06 PM