It's good to see your mom is preparing well for this competitive seller's market. Carolyn is right--your mom should talk with a Realtor before deciding what repairs and improvement to make using her limited funds.
I am happy to help with this important endeavor. Feel free to call or email me any time with questions or service requests. My mobile number is 757-268-5123.
All the best, Joe McAvoy
Ask the agent for what repairs are required by your regional contract, --- usually the following are to be in normal working order: heating, cooling, plumbing, electrical systems and equipment, appliances, smoke and heat detectors. The agent can also share what areas a home inspection will cover, and can recommend what cosmetic items could/should be done. Your mom may even want to hire a home inspector herself prior to listing so that she may address upfront items that might be discovered.
Based on the above information, your Mom may then prioritize and budget for the items that must be in working order, then the cosmetic items that will enhance the sale and the sales price. The agent may also discuss the price range of the home based on the condition. And your Mom can take that into account as well.
The other area to discuss with the agent is if your Mom sold the house "as-is." The agent can discuss the pro's and con's of going this route. Cost savings to the seller vs. perception of buyer ( concens when a submitting a contract, as well as potential price implications. )
Wish your Mom the best in selling her home.
you have put an offer on a home
the inspection report has found some things that needs to be fixed (this will happen on ALL HOMES. )
Ask seller to fix items on inspection report
buy home AS IS and fix yourself
Apply for a FHA 203K fix up loan
Walk Away from the offer and find another home.
Minor problems happens in ALL HOMES even brand new construction.
The terms of your agreement should clarify your options. Having a conversation with your realtor may help you see things mre clearly. What do you mean by, "does not pass inspection?"
Unless your agreement is an "AS IS" contract, you should have a repair limit that would help to cover the expenses for these repairs.
Additional information would certainly be helpful in trying to provide you with information that would be helpful.