Can A Home Seller Refuse to Make Repairs?
The current housing market benefits sellers. With low housing inventory and increased buyer demand, prices are soaring. Homes throughout the country are selling quickly with multiple offers. Yet, homebuyers still need to schedule a home inspection before they buy. Otherwise, you put yourself at financial risk.
The seller can refuse to make repairs. They are not obligated to repair the issues defined in the inspection report.
What is a Buyer’s Home Inspection?
A full home inspection is an evaluation of the current condition of a residential property. The home inspector evaluates and tests the visible components and systems in the home. Then, the inspector prepares a written report detailing the findings of the inspection.
When purchasing a home, the buyer has a contractual right to schedule a home inspection. Then, the homebuyer may ask the seller to make repairs for some or all the issues found during the home inspection. If the seller refuses to make repairs, the buyer has the option and legal right to walk away from the deal.
Should the Buyer Walk Away if the Seller Refuses Repairs?
The buyer must weigh the risks associated with the repairs. Also, the buyer must consider their budget and financial situation.
For some repairs, like roof damage, the buyer’s homeowner’s insurance may not offer coverage until the issues are resolved. Then, the buyer’s lender won’t approve a mortgage without homeowner’s insurance. To purchase the home, the buyer would need to repair the roof. This is only one example of how unresolved repairs lead to a spiraling effect for the buyer.
Major Repair Issues
For major issues, like the roof, foundation, plumbing and electrical system, repairs are more important. These areas of the home cost more to fix. Also, the home may not be safe to live in. If the seller refuses to make repairs, it might be smart for the buyer to walk away. The exception is for fixer-uppers where the buyer expects and has budgeted for major renovations.
Minor Repair Issues
Almost every home has minor maintenance or repair issues. Issues like leaky faucets, broken light fixtures or damaged locks shouldn’t become a deal-breaker. Most minor repairs are easy to fix with little cost. Also, the buyer can safely live in the home before making repairs. You don’t take on much risk to move forward with the home purchase if the seller refuses to make minor repairs.
Impact to the Seller for Refusing Repairs
Not making repairs saves the seller money and effort. Yet, if the buyer walks away, it can cause problems for the seller. The seller must then find a different buyer for the home and go through the contract process again.
Also, the buyer must disclose any known defects. Any issues found in the first buyer’s home inspection report that the seller became aware of must now be disclosed to new buyers.
It’s best for sellers to prepare the home before it goes on the market. Sellers should take care of maintenance issues ahead of time. Also, clean the home and make it look its best. Finally, be honest about known issues and price the home accordingly.
Make Smart Homebuying Decisions
Buying a home is a big investment. Don’t let the excitement of the moment get in the way of good decision-making. Weigh the pros and cons of moving forward if the seller refuses repairs. Always schedule a home inspection as part of the buying process.
Kenco Home Inspections offers full home inspections to clients in Southeast Florida. Get the information you need to make an informed decision. Contact us today to schedule an inspection.