What Happens When a Home Fails Inspection?

 
Before closing, you have the right to have a professional inspector take a detailed look at the property. What happens if the home fails its inspection?

There Is No Such Thing as a Failed Inspection

Technically, there is no such thing as a failed home inspection. What you are doing is examining the property to look for and document any issues before committing to purchase the property. What you may consider a failed inspection the seller may consider to be no big deal.



When examining the property, it is important to keep in mind the age of the homes and the age of any of the home's components. For instance, asphalt shingles installed 30-years ago may be at risk for blow-off or be susceptible to leaking, but that is normal for shingles that old.

If you have any concerns, you should ask if there are any warranties or other guarantees on parts or labor done to the home. Some contractors offer transferable warranties and lifetime guarantees on materials such as metal or copper.

What Does Your Purchase Offer Say?

If your purchase offer says that closing is contingent on the home passing inspection, you should be able to back out of the deal. If you offered to buy the home as-is, you might have to proceed with the transaction. However, a reasonable seller will attempt to work with you to fix any serious issues regardless of what your purchase contract says.

Will Your Lender Still Do the Deal?

The reason you are required to get homeowners insurance before getting a mortgage is to protect the lender in the event of damage to the home. Therefore, you should check with your lender to determine if they would require a leaking roof or a termite infestation to be taken care of before the home is sold.

If you get an FHA loan, they will want to do their inspection and have serious issues remedied before such a loan is approved. In some cases, you may need to pay some of the cost to make these improvements if you want the house.

When an inspection doesn't go as well as you would like it to, it doesn't mean that the deal is dead. Assuming the seller is willing to be reasonable, you can negotiate a plan to resolve any serious concerns that you have. If not, you can decide to walk away and continue your search for a new home.

Author:  April Lavine is the current Managing Broker of Irvine Residential Living and she has the complete knowledge of homes for sale in Irvine.