Who pays for repairs during a home sale?

In the market for a new home? It is probably the largest financial decision you will make, and understanding all of the costs, who pays, and when can seem overwhelming. The best way to ensure there are no surprises on moving day, or thereafter is to hire a home inspector prior to closing. 

Home inspectors assess the condition of the home and look for hidden problems inside and out. An inspector will not tell you anything about the value of the home, as that is the job of an appraiser.

When you submit an offer on a home you should be discussing with your Realtor what inspections you want to have completed. Here are the standard types of inspections and what they are looking for: 

• Structural/Mechanical: foundations and/or basements, floor systems, ceilings, doors, windows, roof, insulation, exterior and interior wall systems, decks, porches, garages, plumbing, electrical systems, heating/cooling systems and components, appliances and mechanical equipment. 

• Mold: air and surface samples are collected from interior and exterior areas to determine evidence of mold or mold spores of any kind and level(s) of toxicity. 

• Environmental: presence of asbestos, existence and integrity of underground oil/gas tanks, presence of solvents/paint thinners, urea formaldehyde, foam insulation, synthetic stuccos, polybutylene piping, mold spores, and other items. 

• Radon: to identify presence of Radon, a colorless, odorless, tasteless 

• Chimney: to determine safety, and structural soundness.

• Lead Paint: for the presence of lead-based paint and/or lead-based paint hazards. 

So who actually pays for the repairs uncovered in the inspections?

Health-related issues such as mold, major water damage or missing smoke detectors are typically among the list of things they buyer is not responsible for and must be taken care of by the seller before the house can be sold. 

For any other issues uncovered by the inspections, or any specific repairs listed in the contract agreement, the seller is not obligated to pay for any additional repairs. The buyer can ask that additional problems be fixed by the seller or even request a price cut to balance out the money that will need to be spent to fix the issues. 

As a buyer you must be aware of the state of the market when entering the inspection period. Asking for too many and even trivial repairs could lead to a termination of your contract, meaning you lose out on the house you thought you had. This is a part of the home transaction that you want to have a Certified Negotiation Expert on your side. 

If you are looking to buy or sell and want to work with an agent who will advocate for you throughout the transaction, we should connect.