Once the inspection is complete, you will discuss with your agent which items, if any, you would like corrected before agreeing to move forward with purchasing the home. If you are purchasing a short sale or foreclosure, or if you have purchased the home at a price below market value, it will be more difficult to have the seller agree to perform repairs. If you do request repairs from the seller, we will request that the seller use a licensed professional when appropriate. You may also choose to request the seller to pay for a home warranty to cover items that are working now, but may be toward the end of their lifespan, such as the furnace and water heater.
Some agents may suggest that you ask for a price reduction based on the inspection results. Be careful about how you handle this. If you will not have the funds to correct these items yourself, or if the lender / appraiser may call out those items before agreeing to the loan, it will be better to have them corrected prior to closing rather than reducing the sales price. Whichever path you choose, your agent will draft an amendment to the purchase agreement for you and the seller to sign.
If you cannot come to terms with the seller on how to handle the items of concern, you will sign a cancellation and move on. You will be out the inspection fee, but your earnest money will be returned. If you and the seller agree to terms, you can move forward with the purchase and the lender will order the appraisal. Luckily, this is most often the case.
Your agent will be with you to guide you through this process.