Short answer:

• Buyers schedule inspections
• Inspectors inspect and send report to buyers
• Buyers’ agent prepares inspection repair request 
• Sellers’ agent prepares response to repair request
• Agents negotiate further if necessary
• Parties agree or walk away

Long answer:

Buying or selling a home is a big deal. It’s exciting, but it can be one of the most stressful experiences of a person’s life. It’s a huge financial transaction, and everyone involved wants to feel like they’re getting a good deal and not getting screwed over. The inspection process is one of the places the tension can come to a head, and deals can fall apart over what may in hindsight seem like minor issues. Let’s not let that happen! 

Purpose, cost, timing

The purpose of a home inspection is to uncover any defects that wouldn’t be obvious.  I personally would not buy a “used” home without a home inspection, and a lot of people even have home inspections on newly constructed homes. Inspections are covered in section 7 of the standard LBAR offer to purchase. Under section 7(d), the buyer decides whether to:

• (1) accept the property “as is” with no inspection(s); 
• (2) have inspection(s) but then take the property “as is” without requesting any repairs or walk away; or 
• (3) have inspection(s) and negotiate repairs. 

Assuming the buyers want to have inspection(s), I always recommend they check the box for “complete property” inspection, which would encompass any inspections the buyer might want to have done (except for Wood Destroying Insect and Lead-Paint, which are handled differently). The most common type of inspection is the “complete property inspection,” which is conducted by a licensed home inspector. The buyer must order and pay for the inspections. Depending on the size of the house (and sometimes the age), the home inspection can take 2-4+ hours and cost $350-500+. 

Another common inspection is the radon inspection. Most home inspectors also do radon testing. They will need access to the house a few days before the actual inspection to set the tests; they can then read the tests when they return to the house for the complete property inspection. If the radon level is over 4 pCi/L (picocuries per liter), the buyers may want to ask the sellers to install a radon mitigation system. 

All inspections must be completed and any repairs requested in writing within a certain number of days (I almost always put 14 or 15 days into my offers). Failure to meet this absolute deadline constitutes a waiver of the inspection clause and acceptance of the property “as is.” The buyers can’t be forced to buy the property, but they may not get the earnest money back (and might incur other costs as well).

Choosing a home inspector

The home inspector will inspect all of the systems of the home, but the home inspector is a generalist. If the inspector sees something that might be an issue, he or she might suggest further inspection from a specialist (such as HVAC, plumbing, septic, structural, chimney, swimming pool, mold, radon, roof, etc.). Of course, the buyer can have a specialized inspection anyway if he or she has specific concerns, especially about big ticket items like HVAC and roofs. Not all home inspectors are created equal. Make sure you ask how the inspector inspects the roof. Legally, inspectors aren’t required to physically inspect the roof, and some inspectors make their inspection from the ground, a ladder, or a drone. Other inspectors mount the roof if at all possible. Click here for a list of inspectors my other clients have been happy with.

The actual home inspection

I recommend buyers attend the home inspection if possible.  Sometimes, the inspector will ask buyers to just meet them at the end of the inspection to go over the findings.  However, the inspection is an opportunity for buyers to learn about their new home, like where the water shutoff is and how to change the HVAC filters, and it is invaluable for first-time buyers. I also arrange to be present when my buyers are at the property, whether it’s for the whole inspection or just the end. 

The home inspector will conduct a visual inspection of the house, concentrating on the condition and structure  and pointing out safety concerns:

• Exterior home site
• Building foundation
• Exterior walls
• Roof coverings, flashings, gutters
• Roof support structures
• Attic
• Basement
• Insulation
• Garage
• Electrical
• Visible interior and exterior plumbing
• Central heating and air conditioning system
• Interior condition of the home

Other Inspections

Home inspectors are generalists. If you have specific concerns about an element of the property, you should consider having it inspected separately. Some examples are:

• HVAC
• Septic
• Plumbing
• Electrical
• Structural
• Swimming pool
• Roof
• Mold
• Lead paint (if your house was built before 1978)

The inspection report and repair request (if any)

Usually the day after the inspection, the inspector will send you a detailed written report, describing the condition of the home and identifying needed repairs.  Almost any home inspection, even for new construction, will uncover items that may need attention. Some might be minor; some might be major. But they don’t necessarily need to be addressed by the seller.  Remember, the contract specifically states that:

• “Inspections are not to ascertain cosmetic imperfections” that the buyer should already have taken into consideration when making the first offer.
• Sellers are not required to bring the property to current building code.
• Sellers are not obligated to perform any of the repairs.
• The inspection report is not a repair list.
• Sellers are not required to make any repairs for items disclosed in the Sellers Disclosure.

As your REALTOR, I will work with you to draw up the inspection repair request. From long experience, I know what’s a big deal and what isn’t. You don’t have to request any repairs! But you can request repairs, or you might even request a price reduction. Although most home inspections go smoothly, sometimes they trigger an intense negotiation.  

My advice to buyers? Be reasonable. The very same inspection report can look different to the same person, depending on whether they think they got a good deal or not. If buyers had to go over asking price in a multiple offer situation, they may feel justified in asking for more items to be repaired. I don’t recommend requesting things the seller is not required to fix, such as cosmetic imperfections, items that would have met code when the house was built or anything disclosed in the Seller Disclosure. You can request a repair for an outdated electrical component that the inspector flags as a safety issue; however, the seller isn’t required to bring the house to current code. So the seller might fix it, but if he or she doesn’t, you can’t use that as a reason to walk away and retain your earnest money. You can always walk away (you can’t be forced to buy a property), but you might not get your earnest money back (and in some cases you could be held responsible for other costs).

Negotiation (if any)

Once the repair request has been submitted, the parties have 4 days to negotiate in good faith. The sellers can:

• Agree to do all repairs requested.
• Agree to some repairs but not others.
• Agree to a price reduction.
• Offer to provide a home warranty.

The sellers can’t just refuse to do any repairs, unless the repairs requested are unreasonable. They and you are obligated to negotiate in good faith.

If the parties can’t agree to inspection repairs within 4 days, the contract is voidable by either party. 

• If the buyers want to void the contract, their agent must give notice of intent to void, after which sellers have 3 days to decide whether to make all requested repairs or let the contract be voided. 
• If the sellers want to void the contract, their agent must give notice of intent to void, after which the buyers have 3 days to decide to accept the property “as is” or let the contract be voided. 

It’s very easy for buyers to get peeved during the inspection repair negotiation, especially if the seller refuses to repair something that seems like a safety issue to the buyers. But I ask my buyers to keep in mind:

• You don’t have to get angry or upset. You can’t be forced to do anything.
• Keep in mind that the sellers might not just be being jerks. They may not have the money to make repairs. 
• A bird in the hand is worth two in the bush. You have already invested your time and some money (for the inspections) in this property. Is it really worth it to go back out on the market and start over?
• If the sellers don’t think you are negotiating in good faith, they may refuse to sign a release for the earnest money and may pursue legal action to go after additional damages. As long as you’ve been negotiating in good faith, you will keep your earnest money, but it can be very unpleasant.

Repairs

If the sellers have agreed to do repairs, they usually just need to be done before closing. I ask their agent to provide copies of paid invoices no later than closing. .

Final walk-through

We will schedule a final walk-through within 48 hours of closing to make sure the house is in equal or better condition than it was on the date of the offer to purchase.  

Wood Destroying Insect Inspection

The process is different for Wood Destroying Insect inspections, which are covered in section 7(c) of the LBAR contract. There is no time limit; you can have this inspection done any time before closing. The inspection is for the house and any improvements, like sheds, barns or detached garages. If “visible evidence of active wood destroying insects is found,” sellers MUST have the property treated before closing and provide proof of treatment at closing. If visible damage is found from active or prior infestation the sellers MUST repair the damage if he or she can do so for an amount not to exceed 1% of the purchase price. If the damage would exceed 1% of the purchase price, either party can walk away.