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The Best Home Repairs For Sellers to Make in 2021

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Some say that there are two types of home repairs in the home selling process: negotiable and non-negotiable. The reality is, you don’t have to fix anything in your home prior to selling it. You can sell it “as is”. However, you must abide by the Florida laws concerning disclosure. This means you have to inform buyers of all defects and dangers that may be present on and within your property.

However, if you decide against doing the repairs, you might have to wait longer for a buyer or accept selling it for a lower price. If your price is too high and the building has too many problems, it could stay on the market indefinitely. By knowing the most common repairs sellers make to close the deal, you can pinpoint your best investment options.

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Within the first few weeks of the contract, your house will probably undergo at least one inspection by a private inspection service like Divinity Home Inspection Services. If the buyer was approved for a VA or FHA mortgage loan, you will also receive an appraisal by a VA or FHA certified appraiser. 

Appraisals and Home Repair

Federally funded lenders will refuse to give a loan to buyers if certain problems in the home have not been rectified before the sale, and VA and FHA mortgage loans make up about 20% of the market. (JCHS of Harvard University, 2020) 

If you receive a VA or FHA appraisal and the repairs aren’t too costly, you should definitely consider fixing them. Even if the buyer walks away, once completed, you can market your home by promoting that your property meets the VA or FHA property standards.

But there are some conditions that may disqualify you right away for the strict FHA requirements like living near an airport or near heavy traffic. So don’t fret until you receive that list of appraisal conditions and find out if the qualifications are within your control.

These conditions highlight areas that affect:

  • Safety
  • Security
  • Soundness

According to the U.S. Department of Housing and Urban Development, FHA renovations requirements include but are not limited to:

  • Repairs
  • Roof moisture
  • Plumbing
  • Frayed or exposed wires
  • Cracked or broken glass
  • Termite damage
  • Rotting structural material
  • Damaged walls or ceilings
  • Poor craftsmanship
  • Replacements
  • Roof
  • Water heater
  • Installation
  • Carbon monoxide detectors
  • Smoke detectors
  • Handrails
  • Countertop

 

Potential Repair Requests by Buyers

After a home inspection, the prospective buyer might ask for repairs to be made before the deal is closed. In fact, you might even receive a scroll’s length of renovation requests.

Let’s take a look at the most common repairs that might be requested from a seller before they sell:

  • Electrical issues
  • Plumbing (especially leaks)
  • HVAC system issues
  • Foundation problems
  • Roof damage
  • Pest infestations
  • Moisture and mold

Repairs are not required if the home purchase involves a conventional loan.  However, they might be worth the trouble if it means a difference between selling your home now or later.

Cosmetic upgrades may be requested too. It’s polite to make these fixes if they are minor and do not cost much to complete. However, it’s always within your rights to say no. These repairs may include:

  • Peeling or chipped paint
  • Holes in the wall
  • Leaky faucet
  • Damaged floors

Negotiation Tactics

If you don’t have the money to cover major repairs and it impacts your home’s perceived value, be prepared to compromise. 

There are two tried and true ways to do this: 

  1. Credit the buyer the amount for the repair, reducing the cost of your home. 
  2. Lock in the sale, including the added cost of the home upgrade. This reimburses you and allows the buyer to pay the repair cost over time along with their mortgage.

By offering credit early in the game, you don’t lose money for repair costs in case the buyer walks away. At the same time, you don’t lose the buyer by giving them an outright “no” regarding the repair issue. If the buyer is insistent on a renovation that isn’t necessary, an agreement to include the renovation costs in a binding contract ensures your investment. 

Overall, a buyer’s home inspection is not an open invitation to force you to fix your home, though it is used in that way frequently. Before you decide on potentially requested home repairs, consult your real estate agent and make decisions wisely.

 

 

Sources and further reading:

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Required Repairs After A Home Inspection

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Any home inspection can result in finding various issues, both minor and major. However, some of these issues may fall under the requirement to be repaired by the seller. And others will not. You may find it important to become familiar with both. Here’s what you need to know!

Required repairs after a home inspection

There are two very specific issues that will be required by the homeowner to repair, regardless of the purchase deal or contract. The first is any water penetration issues such as mold or water in the walls. The second is local code safety violations. This includes any home issues that break any required codes, such as using specific materials for your roof, insulation, an unstable deck, etc.

If any of these two repairs are uncovered during the home inspection, the seller will be required to make the repairs before closing the sale of the home. You can depend on your agent to see this through. You should also expect to make sure you see the repair has been done yourself.

Repairs not required but you can negotiate them

Apart from the two repairs listed above, nothing else is required by the homeowner. However, if a major issues is discovered by an inspection, you can petition the homeowner to pay for the repair. This is part of a negotiation. You and your agent can negotiate with the seller to address any major repairs as part of the home sale.

Allow your agent to guide you

You should know that you won’t always get what you request. Your agent should guide you to to handle your expectations in what the seller will agree to and what they won’t. You won’t know exactly what you will get, but it never hurts to ask. You may also benefit to back up your requests with research. This is why a home inspection is so important. It helps when the sellers hear it from an expert.

As your home inspector, we’re on your side. We want to make sure you are as educated about your home as much as possible. And we also recommend you attend your inspection so you can ask as many questions as you like. Make sure you include us in your home inspection by scheduling right here online!

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All the Reasons Why You Need a Home Inspector

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Why Should You Have A Pre Listing Home Inspection?

Recently we were hired to inspect a home that was under contract for purchase. The buyers were first time home owners and came to use through a referral. After discussing what they needed and setting a day and time, we met at the home for their inspection. When I arrived I realized the home had a sea wall because it sat on a canal. While the new buyers told us the home was on a canal, they did not mention they had a sea wall. How could they? They didn’t even know! I explained to them the importance of having the sea wall inspected, even though there was a small additional cost. They agreed and the inspection ensued.

Upon inspection of this sea wall we found some major foundation cracks. These are the kind of issues you don’t want to find out about after you’ve purchased a home. This kind of repair has a heft price tag associated with it. We walked the new buyers through the inspection, explained everything as we always do, and gave them the details on everything about the home.

Since the home owner chose not to have a pre-listing home inspection done, they also did not know there were existing issues with the sea wall. The new buyers now had to re-negotiate the sale of the house based on this finding.

I know what you’re thinking. “This is why I don’t want a home inspection. A home inspector could kill the dream of buying our dream home! It could kill the dream of selling my house!”. If that is what you are thinking, you couldn’t be more wrong. Our goal is most certainly not to “kill” any home purchasing deal. However, if we hadn’t found the issues then the new home owners could have very quickly found themselves is a financially difficult situation. And while having to re-negotiate the sale of the home, it certainly doesn’t mean the deal is dead. On that same note, had the owner done a pre-listing inspection on the home they would have known about the issue and could have accounted for it before putting their home on the market for sale.

This story is only one of many that we experience every week. New home owners move into a home without having it inspected only to find they’ve walked into expensive necessary repairs. We have no authority to enforce standards but rather to merely point out conditions as they exist and make recommendations.

We would recommend repair to minor grouting in the shower stall just as we would for a leaking roof. Our goal is to help our clients distinguish between the significant needs of the home and those that are more commonplace. Click here to schedule your home inspection today!