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My House Cannot Pass Inspection. Can I Still Sell It?

My House Cannot Pass Inspection. Can I Still Sell It?

No house is perfect.

There will be items that come up on an inspection report when you’re selling your home that will make you scratch your head. 

Yet, major issues will prevent your home from passing the test. It’s these kinds of repairs and how you decide to handle them that can make or break your contract.

So what do you do if the inspection report is holding up the sale of your home? 

You go to Google and type, “what to do if I failed inspection,” which takes you to this blog. Here are your options when your home does not pass inspection and why a cash buyer is a good solution to this problem.

What Are My Options if My House Failed Inspection?

If major issues are found on your inspection report, action will have to be taken before the buyer who’s under contract will purchase the home. You can negotiate a new price, take care of the repairs, or call the whole thing off and start over.

Make a Deal or Call it Off

If your house fails inspection, you can negotiate with the buyer on the contract or decide to part ways.

The easiest thing to do would be to adjust the selling price. You could give the buyer a repair credit that covers the cost of correcting what’s wrong with the home. To come up with a fair amount, you should get a few estimates on the work that needs to be done.

You could also negotiate items that you were going to take with you, but could leave behind to make up for the cost of repairs. Maybe the buyer likes your furniture. Perhaps you don’t need to take the washer and dryer after all. Whatever the case, it’s worth looking into some sort of trade if you don’t want to pay for repairs.

If the buyer added a home inspection report contingency, they can back out of the deal if they’re unsatisfied and get their earnest money returned. If this happens, you will be required to disclose the details of the inspection with future potential buyers in most cases.

Fix Health & Safety Issues

Your next option is to make the requested repairs. 

Here are some common health and safety issues that cause homes to fail inspection reports:

  • Roofing issues
  • Plumbing issues
  • Foundation problems
  • Electrical problems
  • Window & door issues
  • Chimney damage
  • Termites & pests
  • Asbestos or lead paint
  • Elevated radon levels
  • Mold problems
  • HVAC issues

If you decide you’re willing to fix issues in the inspection report that are preventing the sale of the house, you’ll need to get a few things straight with the buyer. Find out if it’s acceptable to do the repairs yourself or if you must pay a professional. Also, decide if you’re addressing all of the issues or just mandatory ones. 

How Can I Pass Inspection After Failure?

If you pay for repairs to be done, it’s advisable to get at least three quotes from trustworthy contractors. You will also have to agree on a deadline with your buyer that gives enough leeway for a re-inspection before closing. Assuming all goes well, your house will likely pass inspection the second time, and then you can proceed with the sale.

Put Your Home Back on the Market

If you don’t want to offer a credit for repairs, pay to have the work done, or fix the issues yourself, the contract will likely become null and void. 

This means you can put your home back on the market, but you should know the fact that it was once under contract will be a red flag to potential buyers. As mentioned above, you will have to disclose the inspection report and possibly explain why you didn’t go through with repairs the first time.

Most buyers do not want to take on major repairs when buying a home. So if you change your mind and fix the issues after the first deal falls through, you should note that in the listing. This will show the next potential buyer you’re serious about making a new deal.

It takes time, money, and effort to fix major issues with a home. However, after failing a home inspection, your house is likely to sell faster after making repairs than it would as-is—plus you could probably raise your asking price.

Sell Your Home to a Cash Buyer

Just thinking about all of the work you’d have to do after failing a house inspection is exhausting. Luckily, there’s a quick and easy way to offload your house without lifting a finger.

Sell your home to a cash buyer.

You won’t have to barter your belongings just to get out of paying for repairs. You don’t need to fix any major issues with a house that is soon going to become someone else’s property. You won’t be relisting the home and going through the inspection process all over again.  

A cash buyer will not only purchase your home as-is, but there won’t be any more waiting, negotiating, or contemplating. After you accept the cash buyer’s offer, the sale can be done in as little as seven days. 

I Don’t Know How to Pass Inspection. What Now?

Now you know what to do when your home doesn’t pass inspection and why selling your house to a cash buyer is a great alternative to dealing with the fallout.

You can go back and forth on negotiations with the buyer until you reach an agreement on a lower price or completion of repairs. Or you can break the deal altogether, put your home back on the market, and go back to square one.

Or you don’t do a thing and talk to a cash buyer who will purchase your home as-is and can close in just days! Contact New Again Houses to set up an evaluation and get a fast and fair offer on your home.

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