Financial Answer Center
- Introduction
- Plan Your Program. Start Early
- Should You Sell?
- Steps before the Listing
- Selecting a Real Estate Agent
- Listing Contracts
- Real Estate Commissions
- For Sale by Owner
- Getting an Offer
- Negotiating Items
- Entering Into a Contract
- Hiring an Attorney
- Financing the Deal
- Seller Financing Alternatives
- Before the Closing
- Home Inspection
- Sample Closing Costs for Items Paid by Seller
- The Closing
- Bridge Loans
- Taxes
If your buyer intends to have a home inspection performed, your contract will either include "subject to" clauses, or satisfactory completion of the inspection will precede the signing of the contract. You will be contacted and an appointment will be set up for an inspector to tour your home. If their report comes back with negative comments, or items that need repair, you will need to decide with your lawyer how you'll pursue this with the buyer. Generally, the inspection helps protect the buyer against major defects in the home: Their objective is to have as much repaired by you as they can. Your objective is to sell the home on an "as is" basis. Be reasonable about what you will agree to and where you will stand firm.
SUGGESTION: The rule of thumb is that repairs required in excess of $100 be taken care of by the seller. Minor items of a lesser amount are usually let go, although health issues, such as asbestos or radon, should always be corrected regardless of the cost.
Pest Inspection
The results of a pest inspection will be more cut-and-dried. You either have infestation or you don't. If you do, the buyer's lender will not go further with financing the deal until the matter is corrected. This is a cost you must absorb. The buyer pays for the inspection except if it is a VA deal.
