What should a Realtor do after a Negative Home Inspection?

Asked by Joshua Williamson, 92405 Sun Apr 5, 2009

My clients offered on an REO property, there are serious problems with the electrical and the AC/Furnace are in-operable. These are their major concerns after a home inspection. They informed me that they would like both fixed. What would be my next step? I am a newer Realtor and have never had a house with any MAJOR problems before.

Help the community by answering this question:

+ web reference
Web reference:


Chandra Watk…, Agent, Redlands, CA
Wed Jun 19, 2013
Having a Negative Home Inspection can be a Positive thing for a buyer. The home inspection is done to educate the buyer what they are purchasing. Whether it is good or bad the purpose is to educate your buyer. In an "as is" sale depending on what the report disclosed can sometimes be paid for by the seller (but only if the seller is willing). As a Realtor our duty is to help the buyer gather as much information as possible, but in the end it is up to the buyer if they want to proceed with the purchase. I hope that helps.
0 votes
Wallace Hags…, Agent, Valencia, CA
Mon Apr 6, 2009
Joshua the "simple answer is": make sure the buyer UNDERSTANDS that an offer on an REO is usually an "as is" transaction and the buyers should not expect any consideration for repairs from the seller, usually a bank or investment company. You can certainly ask the owner for repairs but in my experience the answer is always "NO we will make no repairs". Your next alternative may be to request a negotiated decrease in the sales price to cover the costs of the repairs. That might fly but then you still have the issue of "does the buyer have the funds to make the repairs prior to close of escrow'? Most lenders, specifically FHA loans will require that the home be in working order before close. If the buyer does not have the funds you need to back off this property and find them one that comports to their financial situation. Namely, a house that needs no repair! Good luck!
0 votes
Bill Eckler, Agent, Venice, FL
Sun Apr 5, 2009
Welcome to the world of real estate where successful agents must be able to solve all sorts of problems. Your broker should serve as an advocate for you and provide the guidance you require. All new agents should have the benefit of a support network that they can turn to in times like these.......

If this is not your case, our recommendation is to begin putting one together as soon as possible. It will make your life a whole lot easier knowing you have somewhere to turn to process things.

Good luck
0 votes
Patti Philli…, , Carlsbad, CA
Sun Apr 5, 2009
Joshua, Are you working with any sort of a mentor? They could probably help you with the details of this. Even when my buyers are buying a home that is "as is"- if there is a major problem that wasn't obvious upon walking through initially, I ask for it to be repaired or credited (when possible). In most cases, whether it has been an REO, a short sale or distressed sellers they have gone through with it. If they don't, it must be in the disclosures for the next potential buyer, and they may end up not selling it anyway.

Hope this all helps!
0 votes
Lori Jeltema, Agent, Suffolk, VA
Sun Apr 5, 2009
have your broker step in and take over if he/she needs to. You may need further inspections done by professionals licensed in that particular area. Make sure your buyer is there for each one with camera, notebook and lots of questions. Document everything and make sure your buyer has as much info as possible before proceeding.
0 votes
Jacqueline W…, Agent, Irvine, CA
Sun Apr 5, 2009
Hi Joshua....I recommend you speak with your Broker about next steps, it would be really difficult for anyone in this forum to effectively guide you without reviewing the complete details of the contract between your Buyers and the bank.
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more