To Fix it or Not to Fix it?

Does a Seller Have to Make Repairs After Inspection?
Dear Tara,
I am selling a home for the first time and just received an offer. The buyer had a home inspection completed and the inspection report says that there are a few items that may not be up to standard and are in need of repair. Before the inspection, I was unaware that some of these items would not be deemed "up to standard," and I'm wondering who is responsible for purchasing the replacement for appliances and making small repairs? The buyer's offer is above my asking price, and I am willing to replace and repair what is necessary to move forward with the sale, but I'm not sure what that entails. Can you help? - Terrance
Dear Terrance,
I see this happen all too often with first time home sellers, especially those who try to sell their home without the help of an experienced local agent. Fortunately, it's preventable - and  in your situation, it may not be a deal breaker.
Once an offer is accepted, here in Florida the buyer has 10 days from that point to get an inspection on the home. These reports are used to negotiate repairs of major problems, or to address any environmental or safety hazards that may be present. If results of the inspection are more than anticipated by the potential buyers, the buyers can back out of the contract after the inspection as long at they are within the 10 day time period from when the original offer was accepted and signed.

I recommend to my sellers to order a pre-listing inspection before listing a home. If you know ahead of time exactly what will become a negotiation point (or a "must fix"), you can get ahead of it. You can make repairs before showing your home so they never come up on a buyer's inspection in the first place. If you uncover problems too expensive or time consuming to fix prior to listing, you can disclose those items up front and price your home accordingly.
Some buyers make an offer and then back out because the results of the inspection - especially when the seller refuses to make or pay for the needed repairs. If the buyers walk away, the house will then show as "back on the market" which can look unfavorable. Additionally, you may have missed your potential buyer while your home was tied up and listed as under contract during the inspection period.  Rather than having a continuous cycle of having your home on and off the market, you can reduce your stress knowing that your pre-listing inspection has resolved most if not all of the unknowns. With the "house flipping" craze, inspectors here in Florida have gotten very savvy at finding hidden problems on homes that appear to be perfect on the outside, so if you think something will fly under the radar, think again!

Ordering a pre-listing inspection is a great way to curtail problems that could arise later, and will make for a much smoother process when your home goes under contract.
To answer your question, technically you are not obligated to fix anything on your inspection. However, if you don't bring the home up to a "live-able" standard, the buyer is technically not obligated to buy your home. If your current deal falls through, as you market to the other buyers, agents are ethically required to disclose all known problems that you are aware of. For this reason, if your contract falls through, I suggest you make the any serious repairs and/or lower your list price before marketing your home again.
The next time you sell a home, you can get ahead of this common problem by ordering an inspection, fixing the necessary items, and pricing appropriately before you go to market. Most inspectors will even do a 2nd inspection once you have made some or all of the repairs. Plus a favorable inspection on file can be appealing to a buyer. Best of luck, Terrance!

Is your home ready to pass a home inspection? Call or email me below to request a FREE REPORT of the top inspection traps to be prepared for.

Tara Belanger - Real Estate Professional
Re/Max Unlimited
904.501.9037
Tara@NortheastFLLiving.com
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