After the buyer's home inspection, most sellers receive a list of requested repairs or credits. How you respond affects both your net proceeds and whether the deal holds together.
How the process works
Under the Multi-Board Residential Real Estate Contract used for most Chicago-area home sales, the buyer has a short period after acceptance to inspect and to serve a written notice of defects. The parties then have a limited time to reach agreement. If they can't agree, either party may be able to terminate. Deadlines and the kinds of items that may be requested are set by the contract, so read the inspection paragraph closely.
Your options
- Make the repair. Often the right choice for safety issues or items a lender or insurer will require. Use licensed contractors and keep receipts.
- Offer a credit at closing. Often the simplest option. Lenders may limit how much credit a buyer can receive, so confirm with the buyer's side.
- Adjust the price. Useful when an issue is significant or hard to repair before closing.
- Decline some items. Cosmetic items or minor wear typically aren't grounds for renegotiation.
Practical tips
- Respond through your attorney, in writing, and within the deadline.
- Ask for the inspection report pages that support each request.
- Get quotes for major items so you're negotiating over real numbers.
- Remember that if the deal ends, the next buyer's inspector will likely find the same issues, and you may need to update your disclosures.
- Put any agreed repairs, credits and completion dates into a written amendment.
Final thoughts
A clear, timely response keeps the sale moving and protects your bottom line. See seller representation or schedule a consultation.
By Attorney Shara Kamal. General information for Illinois readers; not legal advice for a specific situation.