INSPECTIONS NEGOTIATION (BUYER)
Home Inspection Negotiations: What Buyers Need to Know After the Inspection
Buying a home in Pennsylvania often includes a home inspection contingency. Once the inspections are completed, buyers may need to decide whether to accept the property, terminate the Agreement of Sale, or ask the seller for repairs, corrections or credits.
Castle Gate Realty helps buyers throughout Carbon County and surrounding areas understand the home inspection negotiation process, important contract deadlines and the options available under their Pennsylvania Agreement of Sale.
What happens after a home inspection in Pennsylvania?
After completing the inspections elected in the Agreement of Sale, the buyer reviews the inspection reports and decides how to proceed. Depending on the terms of the contract, the buyer may accept the property, terminate the Agreement, or submit a Written Corrective Proposal requesting corrections and/or credits from the seller.
Your individual Agreement of Sale controls your rights and deadlines, so it is important to review the contract with your real estate agent.
What is a Written Corrective Proposal?
A Written Corrective Proposal is the buyer's written request to the seller following unsatisfactory inspection results. It identifies the corrections and/or credits the buyer would like the seller to provide.
The proposal may address one significant problem or several inspection concerns. Buyers should focus on the issues that matter most to them rather than treating every item in a home inspection report as equally important.
Can a buyer ask the seller to make repairs after a home inspection?
Yes. A buyer may request corrections or repairs as part of the inspection negotiation process when permitted by the Agreement of Sale.
The seller does not necessarily have to agree to everything the buyer requests. The parties may negotiate until they reach a mutually acceptable written agreement or until the applicable contractual deadline expires.
Can a buyer ask for a credit instead of repairs?
Yes. Depending on the circumstances, a buyer may request a credit at settlement instead of asking the seller to complete a correction.
When the purchase is financed, any negotiated credit must also be acceptable to the buyer's mortgage lender.
Should buyers get estimates before negotiating inspection issues?
Estimates are not always required, but they can be helpful when a buyer is requesting compensation for a significant repair.
An estimate from an appropriate contractor or qualified professional can help both parties understand the likely scope and cost of the problem.
What should buyers prioritize after receiving a home inspection report?
We encourage buyers to identify their Top 3 inspection concerns first.
Ask yourself: Which problems matter most to me? Which repairs would I want completed? Would I prefer a credit where permitted? Do I need an estimate? Most importantly, which issues could cause me to reconsider purchasing the property if the seller will not address them?
Our Home Inspection Negotiation Worksheet was created to help Castle Gate Realty buyers organize these decisions before preparing their response.
How long do buyers and sellers have to negotiate home inspection repairs in Pennsylvania?
The deadlines are established by the individual Agreement of Sale.
Under the current Pennsylvania standard Agreement of Sale, the contract provides for an Inspection Contingency Period and, when a buyer submits a Written Corrective Proposal, a Negotiation Period. The standard form provides a 5-day Negotiation Period if a different number of days is not inserted.
If the parties do not reach an agreement, additional contractual deadlines determine when the buyer must decide whether to accept the property or terminate the Agreement.
Ongoing negotiations do not automatically extend these deadlines.
This is why buyers should stay in close communication with their real estate agent throughout the inspection process.
Does the seller receive the buyer's inspection reports?
Under the current Pennsylvania standard Agreement of Sale, when a buyer responds based upon an elected inspection by accepting the property, terminating the Agreement or submitting a Written Corrective Proposal, the applicable inspection report or reports are presented to the seller in their entirety.
Buyers should understand this requirement before deciding how to respond to their inspection results.
What if the home inspection identifies a major problem?
Some inspection findings may require additional evaluation before a buyer can make an informed decision. Examples can include structural concerns, water intrusion, mold or moisture problems, well or water-quality concerns, boundary questions, wood-destroying insect damage or septic problems.
A home inspector may recommend further evaluation by a contractor, engineer, surveyor or another qualified professional. Because inspection deadlines continue to matter, buyers should discuss the recommendation with their real estate agent promptly.
Are septic inspection negotiations different in Pennsylvania?
They can be. The Pennsylvania Agreement of Sale contains separate provisions when an inspection report reveals the need to expand or replace an existing individual on-lot sewage disposal system.
Because different procedures and deadlines may apply, buyers should review the septic provisions of their Agreement of Sale with their real estate agent rather than assuming the ordinary inspection-negotiation timeline applies.
Can a buyer terminate after a bad home inspection?
Depending on the inspection contingency contained in the Agreement of Sale and whether the buyer complies with the required deadlines and procedures, unsatisfactory inspection results may give the buyer the option to terminate the Agreement.
The exact contract matters. Buyers should not assume they can simply cancel at any time because an inspection uncovered a problem.
Who helps the buyer negotiate after the home inspection?
Your buyer's agent represents you during the inspection negotiation process.
A Castle Gate Realty agent can help you review the inspection findings, identify your priorities, understand the applicable contract deadlines, obtain additional information when appropriate, prepare the necessary real estate forms and negotiate with the seller's agent on your behalf.
Need help buying a home in Carbon County or the surrounding areas? Castle Gate Realty serves home buyers throughout Carbon, Lehigh, Northampton, Monroe and Schuylkill counties in Pennsylvania.
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