This regularly scheduled column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. If you would like to work with Eli and his team in Northern Virginia and the greater D.C. Metro area, you can reach him directly at [email protected].
Question: We just finished our home inspection and are overwhelmed by the list of recommended repairs. How do we know what to ask for and what’s reasonable to expect from the seller?
Answer: You should expect an inspection to turn up a list of issues, even for a new home. With the market shifting towards more leverage for buyers, inspection contingencies and negotiations are becoming more common. The challenge is figuring out which findings deserve further investigation or negotiation and which belong on your maintenance list after moving in.
An inspection report gives you information to make that decision, but it doesn’t automatically make every item the seller’s responsibility. In my opinion, the goal is to focus on issues that were uncovered that you didn’t account for when you negotiated the purchase contract.
Start With Your Contract
An inspection contingency can be structured in multiple ways. You may have a negotiation period that allows you to ask the seller for repairs or credit or you may just have the right to void, without a built-in negotiation period. The former is favored by buyers, the latter is more attractive for sellers. Having permission to conduct an inspection does not, by itself, establish a right to cancel the purchase.
Your options depend on the agreement you signed. Make sure you understand them before assuming you can keep negotiating or walk away.
Focus on the Findings That Matter
An inspection report can make a minor electrical issue and a foundation concern look equally alarming but they deserve different responses.
The issues I would focus on include:
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Structural problems
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Water penetration
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Safety hazards
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Systems or appliances that aren’t working properly
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Conditions that suggest a substantial repair or replacement is coming sooner than expected
Account for Age and Condition
You should try to establish the age and condition of major systems before making an offer, then use the inspection to verify what you understood.
You’ll have a tough time convincing most sellers to buy you a new water heater simply because the existing one is 17 years old, assuming it works and its age was disclosed before your offer. That future replacement should already be part of your ownership budget.
The discussion changes if the inspection finds that it’s leaking or otherwise failing. Similarly, a roof that was represented as recently replaced but turns out to be near the end of its useful life creates a different negotiation than an older roof everybody knew about.
Decide Between Repairs and a Credit
Often, an inspection agreement includes some repairs by the seller and a credit toward the buyer’s closing costs for other items.
For a straightforward repair, having the seller complete the work before closing may be convenient. Be specific about the work, the appropriate contractor qualifications, documentation, and how completion will be verified.
