Making sure that you obtain a home inspection within the contractual inspection period is one of the easiest and most important ways to protect yourself in a real estate transaction. The list of reasons that we’ve heard over the years for why an inspection wasn’t performed is exhaustive and I have yet to hear one that seems a legitimate justification. Often times Sellers are unaware of an issue that a home inspector may discover so even with full detailed disclosure from a Seller, a crucial repair item may be missed and thus become the Buyer’s responsibility post-closing.

The second most important thing is to make sure that the inspection occurs timely. An inspection that is completed outside of the inspection period may still be helpful for the Buyer to know what items will need to be corrected once they own a property although they will not be able to ask a Seller to pay for these items outside of the inspection period with much success. Keep in mind that while a Seller has no obligation to make repairs per the terms of the “Far/Bar As Is” contract a Seller may agree to make repairs to avoid losing a Buyer within the inspection period.

Assuming that an inspection has been completed within the proper time period and an inspection report has been obtained, the agent must forward this to the Seller or their agent immediately with a request that the Seller correct the issues listed or credit the Buyer at closing for these issues. Often times the credit approach is more realistic and easier for a Seller to digest over a laundry list of repairs. Additionally, Buyers need to be realistic with their requested amount or list of repairs. Buyers should focus initially on any safety related items, next on any items that are costly and finally on minor repair items. A Buyer also needs to determine if they can live with fixing anything after closing in the event that a Seller decides to cancel the contract rather than perform the repairs/provide a credit.

Once the agents/parties have sorted out (in writing) the items that will be repaired or credit that will be given, this must be placed in a contract addendum that is signed by both parties. The addendum should then be immediately sent to the title company so they can make sure that it is incorporated into the closing statement and approved by any lender that is involved.

Like everything involved in real estate transactions communication is key, and with inspections early discovery and communication is required.