Home inspection is the first hurdle to be climbed on the journey to purchasing an apartment, there are a lot more other steps you would have to pass through before closing the seal. Here are guides on the next set of actions to take after home inspection.
Review the Home Inspection Report Personally and Discuss With Your Agent
After receiving the inspection report, you have a 2-3 business day window to thoroughly review it. The report contains details about the apartment, including structural components (building, roof, foundation) and systems (electrical, plumbing and mechanical systems). It would also contain details of issues identified by the inspector, some requiring prompt attention, others might not.
Thereafter, discuss the inspection report with your agent who will help you understand the report and evaluate potential health and safety issues. After evaluation, you would together decide on the next course of action, which would be opting to buy the house, request repairs or cancel the purchase contract.
Request to Have Repairs Fixed by the Seller
Inspection reports contain a list of suggested repairs plus health and safety issues, you with the help of your agent would have to decide on the repairs to be fixed by the agent. Repair requests are in two groups; reasonable and unreasonable. Unreasonable requests are unattended to by sellers and include cosmetic issues, renovations you already plan to do, landscaping (if it poses no threats or health hazards) and outdoor buildings (like sheds).
When requesting repairs, stick to pressing concerns like electrical systems (faulty circuit breakers and panel boxes, improper wire connections and unfinished electrical wiring), faulty thermostats in HVAC Systems (heating, ventilation and air conditioning), plumbing systems (leaks, faulty fixtures like toilets and sinks, nonfunctioning water heater system), structural issues (rotting wood), roof system (roof leaks and damage to roof coverings, shingles and chimney) and health and safety issues like asbestos. These are considered reasonable requests that attract the attention of the seller.
Negotiate and Offer Counter-Offers After Seller’s Review
After the seller has received your repair addendum, negotiations would reopen, possibly with counteroffers based on the response of the seller. Sellers could choose to either make the requested repairs, negotiate the requests to fix or refuse to make any. Interestingly, in many states, sellers are not mandated to make repairs and the decision in some instances is based on the market. In the event where the market favors the buyer, the seller tries to negotiate, however, if the tides are turned, the buyer might bear the brunt of repairs, if he so agrees.
Reach an Agreement With Your Buyer
Reach an agreement with your buyer on the repairs, if you are continuing with the purchase, after which the agreement of sale is updated.
Appraisal and Closing
If you are content with the inspection and negotiations, order a home appraisal. This would be required by lenders to estimate the home’s market value. A title search, your mortgage underwriting and the final credit check would be required, after which the deal is closed.
Home inspection is just the first stage when buying a house, the other steps that exist between inspection and closing the deal prove to be pretty crucial. Be diligent and employ the professional services of your agent to ensure that whether the deal goes through or falls through, whatever the case is, you are not at a disadvantage.
