What Happens After A Home Inspection Finds Major Problems?

By Author: Jason Carter
Total Articles: 9
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A home inspection can uncover conditions that deserve further evaluation, repair, or negotiation before a purchase moves forward. If a report identifies major problems, the next step is usually to understand the findings, determine what action is needed, and review your options under the purchase contract. In Colorado, inspection-related decisions are tied to specific contract deadlines, so buyers should review those terms promptly.

1. Review the Inspection Findings Carefully

Start by going through the inspection report with your real estate professional. Separate routine maintenance items from conditions that could require significant repair or further investigation.

Major findings can involve areas such as:

• Structural components

• Roofing

• Electrical systems

• Plumbing

• Heating and cooling systems

• Moisture or other property conditions

A report identifies observed conditions, but some problems may require evaluation by an appropriate specialist before you know the full scope or cost of the work.

2. Get Additional Evaluation When ...
... Needed

A home inspector may identify an issue without providing a specialized diagnosis or repair estimate. For example, a concerning structural observation may warrant evaluation by a qualified structural professional.

Getting additional information can help you understand:

• What caused the problem

• Whether immediate repair is necessary

• What type of professional should address it

• What the potential repair scope may involve

This step can be particularly useful when a major finding could affect your decision to purchase the property.

3. Review Your Inspection Deadlines

If you are purchasing a property in Colorado, check your contract's inspection deadlines immediately. The Colorado Real Estate Commission's residential contract provides an inspection termination, an objection deadline, and resolution deadline.

A buyer may submit a written inspection objection describing an unsatisfactory condition that the buyer wants the seller to correct. If the parties do not reach a written resolution by the applicable deadline, the contract provisions can result in termination.

4. Discuss Possible Resolutions

Colorado's Division of Real Estate identifies several ways inspection issues may be addressed in a transaction. Depending on the circumstances and contract terms, these can include:

• Seller completing repairs before closing

• Seller providing a concession or contribution

• Negotiating a change in purchase price

• Escrowing funds or arranging payment to a contractor when permitted

• Buyer accepting responsibility for repairs after closing

The parties need to document any agreed resolution appropriately.

5. Consider Your Financing

Some inspection resolutions can affect mortgage financing. The Colorado Real Estate Commission advises buyers to consult their lender because negotiated repairs, concessions, or other resolutions may affect loan processing, funding, or the need for additional inspections.

6. Make an Informed Decision

If a Home Inspection Fort Collins, CO report identifies major problems, take time to understand the findings before making a decision. The same applies when arranging a Home Inspection Loveland, CO service for a property you are considering.

A major inspection finding does not automatically determine what you should do. Your next steps depend on the nature of the problem, professional evaluations, your contract deadlines, financing requirements, and the resolution reached between the buyer and seller.