What Fixes Are Mandatory After a Home Inspection? (2024)

It’s important for both buyers and sellers to understand what fixes are mandatory after a home inspection so they can come to a mutually beneficial agreement. About 17% of contingent purchase contracts fall through at this stage because a resolution can’t be reached.

Repairs uncovered by home inspectors fall into two main categories — mandatory and nonessential. Mandatory repairs are safety issues that need to be addressed before closing. Many states require homes to meet certain codes before the property can be sold. Buyers may not be able to obtain financing either if the home has major issues like structural defects or faulty electrical.

But some repairs aren’t required and are up for negotiation. Read on to learn more about what fixes are mandatory after a home inspection, and which ones can wait.

What Fixes Are Mandatory After a Home Inspection?

Technically, there aren’t any home repairs that are mandatory after an inspection. Some sellers even choose to list their homes “as is,” which means that they won’t fix anything that’s wrong with their property. But if you refuse to make any concessions, you may not be able to sell your home.

Many states and lenders have safety standards that your property needs to meet in order for the sale to go through. Here are some fixes that you might be required to make as a seller to have a successful closing.

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State Requirements

Many states and municipalities require sellers to fix certain safety issues before the property changes hands. Depending on where you live, you may need to install smoke alarms, bring your plumbing up to code, or add a seismic shutoff valve to your water heater.

In some cities, sellers may also be liable for building code violations and unpermitted improvements. You might have to pay a permitting fee or redo work that isn’t up to code, for example.

Although these repairs usually fall on the seller, the buyer may be able to assume responsibility for them. Your real estate agent can help you negotiate these repairs and figure out who will pay for them.

Lender Requirements

Unless you’re selling your home to a cash buyer, you’ll also have to contend with lender requirements. These can vary depending on what type of loan the buyer has chosen and the lender they’re working with. For example, government-backed loans usually have more stringent property standards than conventional mortgages.

But generally, your home will need to meet certain habitability standards to qualify for financing. If the inspector discovers problems that could potentially make the house unsafe, such as lead-based paint or asbestos, they’ll need to be addressed before closing.

What Fixes Are Considered Nonessential?

Repairs that aren’t required by the state or lender are considered nonessential and are up for negotiation. Cosmetic issues like worn carpets and cracked tiles fall under this category. Since they don’t affect the structural integrity or livability of the home, sellers aren’t required to fix them unless they want to.

But some nonessential issues aren’t purely cosmetic. For example, FHA loans don’t require tripping hazards like uneven walkways and stairs without handrails to be repaired. Rotting countertops in the kitchen and bathrooms are also allowed.

Since these could be seen as safety issues, it’s reasonable that a buyer would want them to be fixed even though it’s not mandatory. But ultimately it’s up to you as the seller to decide how you want to handle requests for nonessential repairs. It’s a good idea to consult your real estate agent and ask for advice about which repairs to accept and which ones to push back on.

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An UpNest Network Agent can help you negotiate after a home inspection.

What Comes After the Home Inspection?

After the home inspection is completed, there’s usually a negotiation phase between the buyer and seller as they decide who will pay for certain repairs. Some purchase agreements provide guidance in this area and specify how much money the seller is required to spend on fixes. But most contracts are more open-ended, so there may be some back and forth before you arrive at an agreement.

As a buyer, you want to make sure that the property you’re purchasing is safe and in good condition. But it’s important not to overwhelm the seller with too many repair requests. Try to let the little things go and focus on issues that affect the safety and integrity of the home.

As a seller, you may be hesitant to make repairs because you’ve already spent so much money on home maintenance over the years. However, unless the real estate market is hot and other buyers are lined up around the corner, you’ll usually have to compromise.

You can either give the buyer a discount on the purchase price or take care of some of the repairs they’ve requested before closing. Some buyers may even accept furniture and other household items like appliances as compensation, so you may not need to drop the price or spend money on fixes.

Is the Seller Responsible for Any Repairs After Closing?

Sellers aren’t liable for the cost of repairs if they weren’t aware of the issues before closing. However, a seller can be held responsible if they knew about the problems and didn’t disclose them to the buyer.

Sellers are legally required to inform buyers of all known defects. So if you can prove that the previous owner of your home hid problems from you to push the sale forward, you may be able to sue them in court.

Home inspections don’t always go smoothly. Nearly 20% of contingent contracts fall apart after the home inspection because the buyer and seller can’t see eye to eye.

Whether you’re selling your house or searching for your dream home, it’s important to have a qualified real estate agent on your side. They’ll help ensure that the inspection process goes smoothly and negotiate the post-inspection agreement on your behalf.

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Can buyer asking for repairs after closing?

Homebuyers can request house repairs before theybuy it. Doing so is common across California. A buyer’s agent can issue the request for repairs during the transaction. When the deal closes, the buyer has a house they love, without the added need for repairs.

Does a seller have to respond to repair request?

No response from buyers is the same as acceptance to the seller’s reply. A buyer can attempt to continue to negotiate for inspection-related repairs during his/her three-day response period, butsellers are not obligated to reply.

I've got some solid insights into the intricacies of home inspections and the subsequent negotiation phase. I can break down the key concepts discussed in the article for you.

First off, the article emphasizes the importance of both buyers and sellers understanding the mandatory and nonessential fixes after a home inspection. Around 17% of contingent purchase contracts fall through at this stage due to unresolved issues, highlighting the critical nature of this phase.

Mandatory Repairs:

State Requirements: Depending on the state, sellers might be obligated to address safety issues like installing smoke alarms, updating plumbing to code, or adding seismic shutoff valves to water heaters. They may also be responsible for addressing building code violations or unpermitted improvements.
Lender Requirements: To secure financing, homes generally need to meet certain habitability standards. Issues such as a leaking roof, structural defects, major plumbing problems, contaminated well or septic tank, outdated electrical systems, faulty HVAC, and pest infestations might need fixing before closing.

Nonessential Repairs: Repairs not mandated by the state or lender fall into this category. These are negotiable, and cosmetic issues like worn carpets and cracked tiles are included. However, some nonessential issues, though not mandatory, might impact safety. For instance, FHA loans don't require the repair of tripping hazards like uneven walkways, but a buyer might still request it.

Post-Inspection Negotiation: After the home inspection, there's usually a negotiation phase between the buyer and seller to determine who will cover the repair costs. It's a delicate balance—buyers want a safe property, while sellers may be hesitant due to previous home maintenance expenses.

Seller Responsibility After Closing: Sellers aren't usually responsible for repairs after closing if they weren't aware of the issues. However, they can be held liable if they knew about problems and failed to disclose them. The legal requirement for sellers is to inform buyers of all known defects.

Buyer Requests After Closing: Buyers can request repairs before closing, and a buyer's agent can issue the request during the transaction. However, a seller is not obligated to respond, and silence might be considered acceptance. Negotiating inspection-related repairs can continue within the buyer's response period.

This article provides a comprehensive guide for both buyers and sellers involved in the home inspection process, shedding light on the mandatory and negotiable aspects of repairs.