Note: This is part of our series on credit card rewards traps. Check the end of this article for links to more pitfalls.
Now let’s get the the Stage 3: Navigating Inspections & Contingencies
So you’ve got an accepted offer – high fives all around! But hold on, the game’s not over. Next comes the inspection and contingency phase, where houses reveal their true selves. This stage can get a little dicey: hidden problems might surface, and both sides may need to renegotiate who fixes what. Time to put on your detective hats and strategic thinking caps, buyers and sellers.
For Sellers: Inspection Jitters and How to Handle Them
- Pre-Emptive Strike (Pre-Inspection): Some savvy sellers get a pre-inspection before even listing the home. Why? Because surprises are fun at birthday parties, not so much in real estate deals. A pre-inspection can alert you to issues (big or small) that you can fix ahead of time or at least be ready to negotiate on. Yes, it’s an extra expense up front, but it can save you from a buyer running for the hills when their inspector finds termites in the attic. It also signals to buyers that you’re proactive about the home’s condition. Just be aware: if you discover something major, you’ll have to disclose it – you can’t unsee that leaky basement.
- The Art of Disclosure: Speaking of disclosures, it’s best to be upfront about known problems. Did you repaint a ceiling to cover an old leak? That needs to be on the disclosure form. If buyers feel you hid something, it can erode trust faster than you can say “lawsuit.” On the flip side, disclosing issues honestly can actually protect you; it sets clear expectations and can prevent disputes later. I’ve seen sellers worry that disclosing an old plumbing repair would scare buyers, but the buyer didn’t mind at all since we had the receipts and it was all out in the open. Honesty really is the best policy here (and it gives you a bit of a halo effect as a seller).
- Brace for the Ask: It’s almost guaranteed that after an inspection, the buyer will come back with a repair request or a credit ask. Don’t take it personally when their 30-page inspection report makes your well-loved home sound like a disaster zone. Instead, focus on the serious items: safety issues, active leaks, a bad roof, outdated wiring – those are fair. Be prepared to tackle a few of those or offer some money off. Your agent can help advise which requests are reasonable. Remember, the buyer likely still loves the house but wants to make sure they’re not inheriting a money pit. If their list is truly nitpicky, you can always push back on minor stuff or offer a small credit as a gesture.
- Strategic Quick Fixes: Sometimes, offering a simple fix can smooth things over. If the inspection finds, say, the water heater is on its last legs, you could say, “We’ll replace it before closing,” which might cost you less than the credit the buyer would demand if they do it themselves. Or if there’s a laundry list of medium-sized issues, consider offering a lump-sum credit so the buyer can address them – often a modest credit (like $1,000 or $2,000) can cover a lot of little repairs and it saves you the hassle. It’s all about showing goodwill without breaking the bank. Just don’t volunteer to fix everything or you’ll end up essentially renovating the house for the buyer for free.
- Keep the Deal Alive: At this stage, both parties have invested time and money (on inspections, appraisals, etc.), so everyone’s motivated to keep the deal together. If a buyer’s requests are over the top, your agent can help reel them back in by explaining what’s normal. Often there’s a compromise to be found: maybe you won’t drop the price $10k for an old roof, but you agree to split the cost of a new one, or offer a home warranty to give them peace of mind. The key is communication and flexibility. Most deals hit a bump at inspection and still close just fine – don’t panic. Work with your agent, pick your battles, and remember the end goal: getting to closing with both parties feeling okay about it.
For Buyers: Inspect Like a Detective, Negotiate Like a Pro
- Attend the Inspection (and Bring Snacks): Seriously, go to your home inspection if you can. It’s like a crash course in “How to Maintain My New Home 101.” Plus, you can ask the inspector questions on the spot. I’ve even seen buyers show up with coffee and donuts for the inspector – a well-fed inspector is a friendly inspector. They will point out issues big and small. Use this time to really see the house beyond the staging. That sticky window, the ancient furnace, the GFCI outlet that doesn’t trip – it’s your chance to uncover them with an expert guide.
- Prioritize and Be Reasonable: When that inspection report comes back (sometimes 50+ pages!), don’t freak out. Pick your battles. Focus on major issues or safety hazards first. If the report shows the roof is leaking or the electrical has serious problems, those are fair to request fixes or credits. But if we’re talking about a loose doorknob or a dripping faucet, maybe let it slide. You don’t want to hand the seller a 3-page repair list and come off as overly demanding. A good rule: if it was a surprise issue you couldn’t have known about (like hidden termite damage), it’s fair to ask for a remedy. If it’s something visible or minor, assume you bought it “as is” and don’t nitpick.
- Leverage Contingencies Wisely: If you have an inspection contingency, that’s your get-out-of-jail-free card if the house has serious issues. Don’t be afraid to use it if necessary. In fact, a recent survey found 82% of home buyers had some regret about their purchase, with the top complaint being that the home required too much maintenance . A thorough inspection and a tough negotiation now can save you from joining that statistic. Use your contingency period to get estimates for big repairs and give the seller a chance to make it right. If they won’t budge on something major, you can walk away (with your earnest money intact) knowing you dodged a bullet.
- The Walk-Away Option (Again): Remember how we said walking away is a power move? That holds for buyers too. If the house is full of issues and the seller says “take it or leave it,” you might have to leave it. It hurts, but better to lose a few hundred on an inspection than buy a money pit that costs thousands later. Sometimes being willing to walk even brings the seller back to the table with a concession. And if not, you’ll find another house that won’t give you gray hairs.
- Keep Your Agent in the Loop: Good communication with your agent during this phase is crucial. They can advise what’s reasonable to request and what isn’t, based on local norms. (In some areas, sellers fix nothing; in others, they fix quite a bit.) Your agent has seen plenty of inspection negotiations and can guide your expectations. Lean on that experience – that’s why you hired a real estate agent in the US in the first place, to help navigate these waters. And if they drop the ball here, well, remember it next time someone asks you for a realtor recommendation. (Kidding… mostly.)