Dear Mr. or Ms Owen,
Have your lender clarify what you mean by "inspection". Probably it was the appraisal of the home, which with an FHA loan is more than just an assessment of value, but also an assessment of safety. Even homes that just in need "a little love" will often have repairs mandated by the FHA appraiser.
You must understand a few things:
a. This is a loan requirment. the appraiser has a list of conditions to "check on" and few exceed that list, but
most will identify and require repair of any repairs needed from that list. most common is peeling paint.
b. Repairs must be done BEFORE SETTLEMENT and verified by the same appraiser, or the loan won't fund.
. Your willingness to accept the condition(s) does not matter. BEFORE settlement or no loan.
c. Most experienced appraisers working the large parts of are area filled with 60-100 year old homes excersize
a level of common sense or else large parts of the area would have trouble selling, Most of our
grandparents can't lean out a 3rd story window to paint window sashes anymore, for instance.
the good news....this is the sellers repair problem, though it may be a "time problem" for you if the agents, seller and you do not manage it carefully.
first thing you do....get the appraisal report or a verbal of any repairs. there may be NO repairs needed.
if there are, your agent should speak to the other agent and lay this out. Frankly the agents, unless they both got licensed last month, and this is the first transaction for each of them, BOTH should be well aware of everything written here....should follow this plan.
1. seller fix the stuff (if any) that is identified. we cannot close until you do and until the appraiser reinspects
YOU THE BUYER should not spend one cent or five minutes repairing somebody else's home before you own the home. if the agreement falls apart, you won't get the time or money back.
2. if the seller is unable or unwilling.... and you feel you are getting only an average deal at best, the agreement should terminate based on the mortgage contingency, witth you getting back your deposit monies
seller cannot "just sell to someone else" - at least no other fha buyer, becaseu once an FHA appraisal is done on a property, it stands for 6 months. so if your home is in a price range or area where more than half the buyers are FHA buyers, then.... effectively the seller has to face the music and do these repairs - or sell for 60-70% of fair market value to a cash investor. which is probably worse than painting for you.
if the house is vacant. if you feel you are getting a great deal. MAYBE you do the work. but that is not advised and financially risky to you, because if you don't settle, you are out that money and effort.
sorry to ramble. your agent should have explained all of this, and maybe they did, and you didn't really hear or understand. this is NORMAL for FHA loans. it may push back your settlement date.
Long & Foster Real Estate