Sep
15
2020
Real Estate

Sell Your House with a Bad Home Inspection Report

David Saba
David Saba
4 minutes to read.

One of the most nerve-wracking parts of selling a home for the buyer is the home inspection. Believe it or not, it is also a nerve-wracking experience for the buyer. The home inspection determines whether or not a home is up to par. It also often determines whether a bank will agree to finance your loan. If you have a buyer that is using an FHA loan, it also determines if the home is eligible. With all of this in mind, getting a bad home inspection report is not the outcome that anyone wants.

However, a bad home inspection report does not always mean a sale is over. Before panicking, wait to see what the buyer wants to do. Some buyers may drop out, while others may want to negotiate. Depending on the bank and financing options, some buyers may be willing to let repairs go if you lower the asking price. Others will request major repairs be completed but allow you to skip smaller issues. This is especially true with older homes where minor issues are usually plentiful.

What’s a Home Inspection Report?

If this is your first time selling your home, you may not be familiar with a home inspection report. In short, it is a report that lists everything that is wrong with your home. If buyers are financing their loan then they are required to have an inspection by the bank. The bank wants to ensure that the property is truly worth the asking price. It also wants to protect its asset since they will own the home if the mortgage holder defaults.

Even if your buyer is not financing their loan, they are allowed to ask for a home inspection before entering escrow. Most sale contracts are written up to allow the buyer to back out or negotiate following the home inspection report.

As part of the process, a trained home inspector will come into the property in question and thoroughly analyze it from top to bottom. They will look at every major system in the home from electrical to roofing to plumbing. They will also analyze the structural integrity of the home and look for signs of flood damage. Some home inspectors will also look for signs of pests. The home inspector is always chosen by the buyer.

Common Explanations for Bad Home Inspection Reports

Regardless of how well you kept up your home, an inspector is going to find problems. Small problems are not likely going to stop a sale, but some major ones may. Safety issues, expensive issues, and mold issues are all common explanations for a bad home inspection. In particular, homes tend to fail home inspections due to:

  • Roofing problems
  • Plumbing issues
  • Electrical problems
  • The presence of termites and pests
  • Old or faulty windows/doors
  • Foundation issues
  • Discovery of asbestos
Get a cash offer for your house

We are not able to determine an offer price right now.

A local investor will get in touch with you to discuss the sale of your house.

Repair Your Home to Improve Your Home Inspection

While no buyer should expect 100% perfection, it is reasonable for most buyers to want major issues repaired. If you have a bad home inspection report you have two options: Offer a discount or make the repairs. Understandably both will cost you money, but if you lose the sale it may be a while before another buyer comes along.

Plus, real estate laws protect the buyer more than the seller. If you relist your home because it failed the home inspection you have to inform future buyers of this fact. You also need to fully disclose all problems found during the home inspection. If you don’t then you open yourself up to large lawsuits. With this in mind, sometimes working with the buyer after a bad home inspection report is the wiser option.

Skip the Hassle and Sell Your House for Cash As-Is

On the other hand, if you have a buyer that wants too large of a discount or too many repairs, you do have another option. If you sell your house for cash you don’t have to make any repairs. Instead, you can sell your home in just a few days for a lump sum with no strings attached. This is ideal for someone who doesn’t have the upfront money to fund expensive repairs. It is also ideal for someone who needs to sell quickly.

Tired of stressing out about your bad home inspection report? Unload your house in hours by selling it for cash. Request a cash offer from SellHouseFast to find out how much you can get for your house today.

Leave a Reply

Your email address will not be published. Required fields are marked *

No Comments

No comments yet, be the first...