Cathy Mattingly

What sellers can expect from the inspection process in Georgetown & Central Kentucky

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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 tension can come to a head, and deals can fall apart over what may in hindsight seem like minor issues.  

Purpose, cost, timing

The purpose of a home inspection is to uncover any defects that wouldn’t be obvious.  Inspections are covered in section 7 of the standard LBAR offer to purchase. Under section 7(d), the buyers decide 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

The most common type of inspection is the “complete property inspection,” which is conducted by a licensed home inspector. The buyers 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 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).

The actual home inspection

Most inspectors ask the buyers to meet them at the end of the inspection to go over the findings, but the buyers might be present for the whole inspection. The sellers should not be present, if possible.  

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 the buyers will receive 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.

The buyers’ agent will work with the buyers to draw up the inspection repair request. The buyers don’t have to request any repairs! But they can request repairs, or they might even request a price reduction. Although most home inspections go smoothly, sometimes they trigger an intense negotiation.  

Negotiation (if any)

Once the repair request has been submitted, the parties have 4 days to negotiate in good faith. As your REALTOR, I will work with you to respond to the repair request. You 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.

You can’t just refuse to do any repairs, unless the repairs requested are unreasonable. You’re obligated to negotiate in good faith.

Whether I’m working with buyers or sellers, my advice is to 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. But if the buyers felt they got a good deal, they might not ask for any repairs. If sellers feel they got a fair price, they might be willing to do more repairs. If sellers think they really should have gotten more for the house, they may be more reluctant to do repairs. 

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 sellers to get peeved over inspection repair requests, especially ones that seem “unreasonable” to them.  But I ask my sellers to keep in mind:

  • You can just say no to unreasonable requests. You don’t have to get angry or upset. You can’t be forced to do anything.
  • A bird in the hand is worth two in the bush. There are probably a lot more houses for the buyers to purchase if they walk away than there are new buyers for your home.
  • It’s very likely that the buyers will be able to retain the earnest money, as long as they have tried to negotiate repairs. So your home will be off the market for a week or more, but you’ll have nothing to show for it. And when it comes back on the market, future buyers might wonder “what was wrong with it.”
  • Once you’ve been advised of a repair issue, you have to update your Sellers Disclosure and disclose it. You may end up having to do the repair anyway in order to sell the house, so why not just go ahead and get it done and move on?
  • But again, you can just say no to unreasonable requests or repairs you can’t afford to make.

Doing repairs

If you have agreed to do repairs, they usually just need to be done before closing. Scan your paid invoices, if possible, and send them to me for your file. And bring them with you to closing.

Final walk-through

The buyers’ agent 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; the buyers 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.

Short Disclaimer Text Here.