Once the contract has been fully signed by both the buyer and seller, the buyer's agent will arrange to schedule a home inspection! The inspectors have access via lock box and/or the buyers' agent will be present. This is an exciting time for the buyer and they will likely attend the inspections as well, however, the seller is not present in the home. This allows the buyer a chance to see the home again and review the findings with the inspector.
Depending on the size of the home, a home inspection typically takes one hour per every 1,000 square feet in the property. The seller should make sure all doors (attic and crawl space) are unlocked and all equipment is accessible. Seller will also need to ensure the power, gas and water is on before and during the inspection, as well as any pilot lights lit.
Once the buyer receives the full inspection report (some inspectors provide it on the spot, others usually send within 24-48 hours), they will review it with their agent and decide if they want further inspections or ask for any repairs. The buyers will make an official request for repairs as an addendum to the original contract. Once the seller's agent receives the addendum, along with the inspection report, the seller will be made privy to the findings.
Major points of concern may include moisture or water issues. Structural issues will be found during this inspection process, as well as any electrical, plumbing, heating or air conditioning concerns. Minor concerns may be cosmetic in nature, siding or trim damage, leaking fixtures or dirty filter issues.
It is the duty of the buyer to review the inspection report with their agent to determine what, if any, concerns they wish for seller to remedy. The addendum will note those concerns and requests for repair. Seller has the option to accept the request in full, negotiate which items they will remedy or refuse to undertake the repairs.
Because the home inspection takes place during the Due Diligence period, the contract may be cancelled if buyer discovers concerns that are notremedied to their liking.
WHAT YOU SHOULD KNOW:
Home inspection and repair addendums are not an opportunity for the seller to return the home to like-new condition. This is an opportunity for buyer to be aware of any major issues and concerns going into the final stages of the contract before the settlement, and to allow the seller to have a chance to remedy, should the agreement be reached.
Cosmetic items are typically not included in the repair addendum as those were visible during the initial viewing of the home, and prior to the offer to purchase being made. Things like carpet stains, markings on the wall, loose or ill-fitting fixtures or wall plates would likely not be included in a repair addendum.
Structural or environmental issues are morelikely to be addressed in the repair addendum and should be dealt with by hiring licensed professionals for any repairs.
Once any requested repairs have been agreed to, the contingency for said repairs is removed and the contract moves out of the Due Diligence phase. Receipts will be requested prior to settlement and a preliminary walk through will be held a couple of days before settlement is planned for buyer and/or the buyer's agent to review all repairs.