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shadywillowfarm

How to Rebut the Home Inspection Report

ShadyWillowFarm
3 years ago

We’ve all been there - the house you lovingly lived in and diligently maintained for decades gets an inspection report that makes it seem that the deck will come crashing down, the plumbing will fail, and electrical “issues” will catch it on fire the minute the buyers move in. So....how to negotiate the “repair” demands made by the buyers despite listing the house “as is” with full disclosure? We disclosed the age of the roof, all systems, the deck, hot tub, etc and have always repaired any problems that arose.

Comments (20)

  • c9pilot
    3 years ago

    You don’t. The buyers are just trying to get concessions from you because it doesn’t hurt to ask.

    I’ve seen this when there are multiple offers (not that this is necessarily the case) that the buyers will make a higher offer to “win” the contract and then start whittling it down using the home inspection as a weapon.

    Or they get buyers remorse and think they paid too much so they’re trying to justify it,

    If your house is priced appropriately for the market and condition, there’s nothing for you here.

  • Seabornman
    3 years ago

    I've agreed to take care of any real items and any items that don't cost much. Then the buyers think they got something. For example, I was told the kitchen counter outlets required GFIs. The kitchen was unchanged from original 1966 build so they weren't required by code. But I put them in as it was fairly cheap to do so.

    My stepson bought a house a few years back. I helped the inspector find some issues. The seller fixed a few then said "we're done". He wanted the house and had already spent money for inspection, etc. so he bought it.

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  • beesneeds
    3 years ago

    You listed your house as-is with full disclosure. Potential buyers try to get a discount or fix, and that's normal. If you don't want to fix the as-is, you don't have to feel obliged to do so. If you feel the buyers have reasonable requests you are willing to fix, that's OK too.

  • nancylouise5me
    3 years ago

    You can rebut it by saying No, the house is selling as is. or If what they are asking to repair are minor things that can be fixed for a few hundred dollars, not thousands and if you feel like fixing them do it. Buyers can ask for the moon, you do not have to comply with their wants.

  • mtvhike
    3 years ago

    Find another buyer. A friend of mine had a buyer (or at least the buyer's attorney) who was so demanding that the closing was delayed for two years and cost my friend over $10,000 to satisfy.

  • Ron Natalie
    3 years ago

    Welcome to the scam of home inspectors. Not only will they generate absolute unsubstantiated drivel, they'll miss serious issues with impunity. Their contracts are so weasel-worded to make reliance on anything they say impossible.

  • Lyndee Lee
    3 years ago

    As the buyers know, getting a house sale to the inspection phase requires a significant investment in time, money, and emotional energy. They are going to request whatever they might possibly have a small chance of getting with the inspection report indicating an impending disaster as their justification. Some sellers just don't want to start over with another buyer and agree to some rather unnecessary fixes just to move forward. From the buyers perspective, "NO"s don't cost anything and "nothing ventured, nothing gained" There is very little downside to raising issues and lots of opportunities for benefit.

    I have had a couple of experiences with buyer's home inspections. One case, a buyer had an inspector unfamiliar with the issues expected in an 80 year old home and then sent the report to the mortgage lender. Lender declined to fund a loan on a dump with lots of problems. As the seller, I knew the house was generally solid with some condition issues and the price was a good deal. That buyer knew the house was worth pursuing and ending up having to start over with another lender, paying mortgage, appraisal, and inspection fees which delayed the sale for 30 days. With the benefit of hindsight, I should have pulled out instead of giving her an extension but I didn't spend anything on fixing the reported issues.

    I have the luxury of selling properties that aren't my primary residence and the costs of holding a property aren't high in my area. I know my properties are in demand and and realistically priced for the flaws. The inspection reports aren't a surprise to me so I don't have a problem standing firm and fixing only defects, not maintenance issues or requested upgrades. Extra insulation please? After you buy the house, add all you want!

  • homechef59
    3 years ago
    last modified: 3 years ago

    When you have a buyer on the hook, you still need to set the hook and reel them in. This is what a very experienced agent of mine told me years ago when I was selling a historic home that had just been fabulously renovated with a number of understandable issues due to the age of the home.

    The answer to your question is, it depends. If your buyer has an FHA or VA loan, some of the issues will have to be resolved before the loan will be funded. In that case, you have to fix them. No discussion.

    If the roof is more than 10 years old, the new buyer may have trouble getting a loan in certain areas of the country. That may become a point of negotiation. Make certain that you have a roofer and not an inspector look at the roof. This also goes for big ticket items. Remember, the inspector is a generalist who knows very little about mechanical or structural items. Always insist on a specialist opinion.

    If the inspection reveals something small that I didn't know was broken, I tend to fix it. I usually fix the nitpicking items myself. Something like a missing switch plate cover or leaky faucet.

    You can sweeten the pot by offering a $250 rebate to take care of things. I call it the nuisance fund. If it makes them happy and they think they are getting something, it's worth it to close and be on my way. Let them fix it.

    If you have listed "AS IS" you can tell them to pound sand. Or, do what Celadon suggested. Have your agent change the listing to "Now Accepting Backup Offers."


  • PRO
    Jeffrey R. Grenz, General Contractor
    3 years ago

    Most inspectors work from templates which may generate 50 pages of "recommended upgrades" vs "defects" as we've seen even with new homes.


    You're selling a resale. Many of the "comps" were also imperfect in other words some of those unrepaired issues are priced into the home already.


    Its a negotiation.


  • ShadyWillowFarm
    Original Author
    3 years ago

    C9pilot you hit the nail on the head. Pun intended. We got an offer, which was low, then word that another offer was on the way before we had a chance to respond. We let the first buyer know there was another offer on the way and they immediately increased their offer to full asking price. Their demands after the home inspection include replumbing the entire house (a small leak showed up on the inspection report) and a new HVAC unit (the inspection report said it should be serviced). They are now back down to their original asking price. I feel like their full price offer was in bad faith.

  • Lyndee Lee
    3 years ago

    Did you end up getting a second offer on the property? In my area, the market is hot with people wanting their own property due to Covid and the extra affordability of the record low interest rates.
    I would be tempted to stop talking all together to this buyer because it does sound like they expect to renegotiate their offer. Go ahead and get the leak fixed as that is a true defect that any inspection should catch. If the heat and AC serve their purpose, that is not a defect; function is all that is required. Even if you give in to these requests, there is still no guarantee the sale will close. Plus, if you were to list the property for the same price but with new HVAC and new plumbing, your property would be much more desirable in the market and you might attract additional buyers with better offers. Unless you really need to get the deal closed quickly, I would consider reminding the buyer of the AS IS clause and offer them the opportunity to back out.

  • chicagoans
    3 years ago

    Not a pro, speaking from the experience of selling my house last month. This is where your attorney comes in. My inspection came back with many things, from large (mold in attic) to small (one pipe between water heater and flue needed tightening.) I saw the whole report and the buyers didn't ask for everything to be fixed. For some of the things they asked, my attorney's response was to "respectfully decline" to address. For others, I scrambled to get quotes (I had a super tight timeframe because my buyers had to be out of their place.) I first offered a price reduction (since my transfer tax and realtor commission is based on sales price); they declined. I then offered a credit for one thing, and had everything else fixed and provided receipts. All of this was done through my attorney, who was fantastic and helped keep me sane! (I'm a widow so I was doing this by myself, and was stressed.) My attorney charged a flat fee that honestly was low for all he did. I couldn't have done it without him.

    I hope you have an attorney that will work through this on your behalf.

    And a plus 1 to what @Jeffrey R. Grenz, General Contractor said. All the trades who came to help me fix things said something about inspectors justifying their role by finding as much as possible to put on the report.

  • Miranda33
    3 years ago

    @chicagoans - I am in the Chicago area too, and am looking for a real estate attorney. My apologies to the OP for going OT! @chicagoans - can you please PM me on Houzz (just click on my name and there is a message tab), and let me know the name of the attorney you said was fantastic? It would be so much appreciated! Thanks so much!

  • Candace
    3 years ago

    Oh, home inspectors - the bane of your existence if you’re a seller or your best friend if you’re a buyer. I agree they find as much as possible to justify their role! When we were selling a home years ago, an inspector put down a faulty dimmer switch because a lamp flickered when dimmed - little did we (or HE) know we did not have a dimmable LED bulb in the lamp at the time! We tried to tell the inspector/buyers that this was the issue, but no... we had to replace the switch - fortunately an easy and inexpensive fix for my DIY husband.... this same inspector said we needed a new furnace, which by the way had been replaced a week earlier....

  • sgcgmc
    3 years ago

    We had a similar experience a few years ago. Took an offer below asking price, and agreed to pay buyers settlement costs. HVAC and roof were both older, but age was disclosed as required by law. Both had annual checks and upkeep as necessary. Inspector came in, said HVAC had to go, and roof was in worse shape. He did not go on the roof, not even up a ladder. There were a few minor issues we fixed (outlet cover in attic, a screw that fell out somewhere) and said no on the others. Buyers withdrew offer and walked away. We took house off market for a few months then relisted. We had a roofer look at the roof - he actually went up on it - and said it had at least five more years. Original buyers had gone to see other homes and realized what they had walked away from. They wanted to go through our house again, but our realtor told them either buy it or go away. They bought it for the original offered price. So bottom line - as long as things are disclosed ahead of any offer then buyers should not be allowed to dictate to you.

  • HU-346590735
    3 years ago

    Represented a seller a few years ago, home was built in 1950, and an addition added in2000. Home inspector flagged windows in the 2000 addition as all having seal failure, all 20 of them including two patio doors and estimated $20k to replace them, Seller cured the "seal failure" by washing the windows! Cost: one bottle of Windex and a roll of paper towels!

    Another seller was told his heat pump was leaking refrigerant on the basement floor. Turns out it wasn't a heat pump but an oil fired fired boiler and the service techs drip a tiny bit of oil each time they changed a filter.......and the home didn't even have air conditioning!

























  • midcenturymodernlove
    3 years ago
    last modified: 3 years ago

    C9pilot"You don’t. The buyers are just trying to get concessions from you because it doesn’t hurt to ask.

    I’ve seen this when there are multiple offers (not that this is necessarily the case) that the buyers will make a higher offer to “win” the contract and then start whittling it down using the home inspection as a weapon."

    I despise this Buyer/bad agent tactic and won't play games.

    If the condition was observable prior to making the offer, it's off the table anyway. The Inspection exists only for the Buyer to know the current condition of the house he has chosen to buy; that's it. It is not a secondary negotiating round and I won't treat it as such, Buyer or Seller.

    It is fair game to ask for a SAFETY repair after Inspection that was clearly unidentifiable prior to Inspection. I will have electrical or plumbing items that are health and safety risks repaired, but that generally doesn't happen anyway, as I repair all this prior to move-in and maintain it.

    Get out of here with your upgrades and improvements, or your "the furnace might only last a few more years" nonsense though. The house has already been priced for those; and either buy it or don't. I don't play that game as the Buyer or as the Seller. My offers as a Buyer are reasonable and fast, and I know there will be work.

    Lots of Inspectors are not very good and they miss a lot and make up other stuff. Some are great. Find the good ones.

  • homechef59
    3 years ago

    Now we know the full situation. An "AS IS" home and two relatively small inspection items, a leaky pipe fitting and a servicing of the HVAC. You have choices.

    While you could stand your ground, be legally correct and do nothing, you still haven't gotten rid of the house.

    Remember, getting rid of the house is your primary goal. You are so close.

    If I were your realtor, I would suggest that you have the leaky pipe repaired by your plumber and provide the receipt. Regarding the servicing of the HVAC unit, you can concede the cost of a service. Just call your HVAC service company and ask them for a quote for the typical service fee. It's too late in the season for the system to be properly serviced. Concede the cost of the service fee. If you are feeling the spirit of the season, you could offer to buy them a one year home warranty. That would be going above the call of duty, but a nice gesture.

    The demand for a full replumbing and new HVAC unit are ridiculous. A repair and a service are something I would have done if brought to my attention in any case. If the sale falls through, you are going to fix these items.

    None of these actions are necessary on your part, but they will get you to the closing table and a check in your hand. A check in your hand is what you really want.

  • function_first
    3 years ago

    It depends on your area. It's normal here for sellers to fix things (up to a limit) that come up in the inspection report. When we priced our homes we "pad it" with about 3K over what we actually want to get from it, and when the inspection turned up some fixes, we happily offer to fix and/or credit the buyer. For us it's a matter of wanting to get the thing sold, and enjoy the process. The converse side of having a lot of buyers back out is the pricing history starts to suggest that there's something wrong with the house if it goes contingent repeatedly then back on the market. It's best to get it sold to the first buyer, IMO.