What Happens After a Home Inspection?

After a home inspection, there are several key steps to follow, and how you proceed will depend on the findings of the inspection. Here’s a breakdown of what typically happens after the home inspection:

1. Review the Inspection Report

• Inspector’s Findings: After the inspection, the inspector will provide a detailed report that outlines any issues they identified in the home. This report usually includes descriptions of the problems, photos, and recommendations for repairs or further evaluations.
• Understanding the Report: Take your time to read through the report carefully. It’s normal for inspectors to find issues, as no home is perfect. The key is understanding the severity of the problems. Major issues (like foundation problems or mold) are typically more pressing, while smaller issues (like cosmetic defects or minor maintenance tasks) might not need immediate attention.

2. Consult with Your Real Estate Agent

• Discuss the Report: Once you have the inspection report, it’s time to discuss it with your real estate agent. They can help you interpret the findings, especially if there are issues that are hard to understand or if you need to decide how to proceed.
• Next Steps and Strategy: Based on the report, your agent will guide you on the best course of action. This could involve negotiating with the seller, asking for repairs, or, in some cases, even backing out of the deal if there are significant issues.

3. Decide How to Move Forward

There are a few different ways you can proceed after the inspection depending on the findings:

• Request Repairs or Credits: If the inspection uncovers significant issues, you might want to ask the seller to make repairs before closing or offer a credit to help cover the cost of repairs. Your agent will assist in negotiating these terms.

• Ask for a Price Reduction: If the issues found are not immediately pressing but will require expensive fixes in the near future (like replacing a furnace or repairing the roof), you can ask the seller to lower the price of the home to compensate for these future costs.

• Accept the Home “As-Is”: If the issues are minor or you’re willing to handle them on your own, you might decide to proceed with the purchase without asking the seller for repairs or credits. This is often the case if you’re in a competitive market where you don’t want to risk losing the property.

• Request a Follow-Up Inspection: In some cases, the inspection may raise concerns that require more specialized evaluations. For example, if the inspector notices potential mold or structural issues, you might want to bring in a specialist (like a mold remediation expert or structural engineer) for a second opinion.

• Walk Away from the Deal: If the inspection uncovers major problems that are beyond repair or would cost more than you’re willing to spend, you have the option to back out of the sale. Most contracts have contingencies that allow you to cancel the agreement based on the results of the inspection, though you might lose your earnest money depending on the terms.

4. Negotiate with the Seller

• Requesting Repairs or a Credit: If you’ve decided that you want the seller to make repairs or offer a credit, your agent will usually send a request to the seller’s agent. The seller can either agree to the repairs, offer a credit, or decline. You may go back and forth a few times before reaching an agreement.

• Revised Offer: If you’ve negotiated a price reduction or credit, the seller may revise the original purchase agreement to reflect the new terms. This step typically happens after you’ve agreed on the repairs or credits.

5. Make a Decision About Your Financing

• Review Your Financing Options: If you’ve requested repairs or a price reduction, or if the inspection revealed issues that impact the home’s appraised value, it might affect your financing options. Your lender may need to re-evaluate the property’s value based on the inspection report.
• Loan Reconsideration: If the home is appraised at a lower value due to discovered issues, your lender may offer a reduced loan amount, or you may need to negotiate with the seller for a price reduction to ensure the home still meets the loan-to-value ratio required by your mortgage.

6. Finalizing Repairs (If Necessary)

• Repair Process: If repairs are negotiated, the seller may agree to either complete them before closing or provide a credit for you to handle them after the sale. In some cases, you might want to hire your own contractor to inspect the work done by the seller to ensure it meets your expectations.

7. Prepare for Closing

• Reviewing the Final Agreement: Once any repairs or credits are settled and the financing is in order, your closing documents will be updated. This may include adjusting the final sale price or adding credit for repairs.
• Final Walk-Through: A few days before closing, you’ll typically have a final walk-through of the home to ensure the seller has completed any agreed-upon repairs and that the home is in the same condition as when you made the offer.

8. Closing on the Property

• Close the Deal: If everything is in order, you’ll move forward with the closing. This is when you sign the final paperwork, complete the financial transaction, and officially become the owner of the home.
• Post-Closing Tasks: After closing, you can begin moving into your new home, and if any post-inspection repairs are your responsibility, you can get started on those.

Summary of Key Steps After the Inspection:

1. Review the inspection report and understand any issues.
2. Discuss the findings with your real estate agent to decide on next steps.
3. Make a decision about whether to request repairs, negotiate a price reduction, or accept the home as-is.
4. If necessary, request a follow-up inspection or specialist evaluation.
5. Negotiate with the seller and reach an agreement on repairs or credits.
6. Prepare your financing if the inspection affects your mortgage.
7. Complete the repair process and finalize the details.
8. Do a final walk-through and proceed to closing.

While the home inspection process can sometimes be overwhelming, it provides important information that can help you make an informed decision and avoid future problems. Whether you negotiate for repairs, back out of the deal, or move forward as-is, the inspection gives you the tools you need to protect yourself and your investment.