Fixing the Water Heater Is Only One of the Mandatory Repairs Sellers Are Responsible for After a Home Inspection 

If you're selling your home, you might be concerned about common repairs needed after a home inspection. After all, despite it still being largely a seller's market, most buyers won't commit to purchasing a place until there's been a thorough inspection by a home inspector.

So, if your home inspection turns up flaws that your homebuyer wants fixed, what then? To be sure, repair requests after an inspection are a hassle—and liable to cut into your profits, if you're on the hook to pay for them yourself.

To know what you, as the seller, are responsible for, the first step is to read your inspection contract carefully.

"As a seller, you should never sign an inspection contract until you fully understand its obligations, particularly where it concerns your responsibility for fixing things," says Michele Lerner, author of "Homebuying: Tough Times, First Time, Any Time: Smart Ways to Make a Sound Investment."

With inspection contracts, there are some standards that are usually agreed upon, especially when it comes to a seller's responsibility.

What fixes are mandatory after a home inspection?

To begin, understand that a home inspection report is not a to-do list; there's no need for you to fix everything a home inspector thinks could stand for improvement.

Inspection repairs fall into three categories: fixes that are pretty much required, according to the inspector; fixes that typically aren't required; and fixes that are up for debate.

Structural damage

Certain repairs that will be required by lenders before they will release funds to finance a buyer's home purchase address costly structural defects, building code violations, or safety issues.

This includes issues in the attic, crawl spaces, and basement, as well as the chimney and, of course, the foundation.

Heating and cooling elements

An inspector will also check whether your septic system, furnace, and heater are in good condition and verify if there's a possible radon leak or the presence of termites (homeowners tend to have many questions on these topics). Other conditions of the home that an inspector may report on include those related to the roof, electrical systems, plumbing lines, and the condition of your HVAC system.

If a home inspection reveals such problems, odds are you're responsible for fixing them. Start by getting some bids from contractors to see how much the work will cost. From there, you can fix these problems or—the more expedient route—offer the buyers a credit so they can pay for the fixes themselves. This might be preferable, as you won’t have to oversee the process; you can move out and move on with your life.

Home inspection repairs that aren't required

Cosmetic issues or issues of normal wear and tear that are found by the inspector usually do not have to be fixed by the seller.

"Some inspection contracts will expressly state that the buyers cannot request any cosmetic fixes to be made and can only ask that structural defects, building code violations, or safety issues be addressed," says Lerner. Furthermore, "state laws may also impact your liability as a seller for any issues uncovered during an inspection."

Be sure to check your local ordinances to know which issues that are found during an inspection legally fall within the seller's realm of responsibility.

Home inspection repairs that are negotiable

Between fixes that are typically required and those that aren't is a gray area that's up for negotiation. How you handle them depends in part on the market you're in. If you're in a hot seller's market, you have more power to call the shots.

"While buyers are always advised to have a home inspection so they know what they are buying, when there are a limited number of homes for sale and buyers need to compete for homes, they might actually waive their inspection right to ask a seller to make repairs," says Lerner.

In fact, "the best contract for a seller would be for the buyer to agree to purchase your home as is or to request an 'information only' home inspection, thus absolving you of any need to pay for any fixes found by the inspector," she adds.

However, in a normal market, you won't be able to draw such a hard and fast line related to an inspection.

Work with your real estate agent to understand what items you should inspect for yourself and agree to tackle—and where you might want to push back. Don't have an agent yet? Here's how to find a real estate agent in your area.

Just remember: You’ll want to be reasonable when it comes to repairs because you may have already put a lot of time into the selling process, and it’s likely in your best interest to accommodate some fixes rather than allowing the buyer to walk away. Also, depending on the magnitude of the requested fix, it’s not likely to go away. Now that it’s been uncovered by the home inspector, you’ll need to disclose the issue to the next buyer.

How to negotiate home fixes

Here are two little-known but effective ways to sweeten up your buyer when a gray-area issue is uncovered during the inspection:

• Offer a home warranty. “I sometimes keep a $500 one-year home warranty in my back pocket as a token to ease concerns found during a home inspection,” says Kyle Springer, a real estate agent with Coldwell Banker in Bowling Green, KY. That can come in handy if there is an element that doesn’t truly need fixing but is still worrying the buyers, such as an aging HVAC unit.
• Barter for something of value to the buyer. Often sellers will suggest that their real estate agent ask the buyer’s agent if the buyers want appliances or furniture if they have no plans to move them. Springer advises sellers to wait to make that offer until after they get the list from the inspector, because they may be able to beg off certain fixes in exchange for items such as the washer and dryer.