Inspection & Negotiations: What to Expect After Your Offer is Accepted
Congratulations! Your offer has been accepted, and you’re officially under contract—cue the happy dance! But before you get too comfortable, it’s time to get to work. The next step in the process is the inspection, and with it comes an opportunity to really get to know your potential new home.
Welcome to your option period (also known as your due diligence or inspection period). This is the time you have to thoroughly check out the home, look for any red flags, and ensure you’re making an informed decision about moving forward. It’s an exciting moment, but it can also feel a bit overwhelming when you’re faced with a 15-page inspection report. Don’t worry, though—this is normal, and you’re not alone. Your realtor, lender, and inspector will be there to guide you every step of the way, helping ensure that the house you’re about to buy is a good investment.
Step 1: Get Ready for the Inspection
Once you’re under contract, there are a few things you’ll need to take care of right away:
• Submit your option fee (this secures your option period and gives you time to back out for any reason).
• Submit your earnest money deposit (usually around 1% of the sales price).
• Schedule your inspection (this is where your realtor will help by recommending trusted inspectors).
The option fee is a small amount you pay to the seller to take the home off the market during your inspection period, which typically lasts 5–10 days. This gives you the flexibility to back out of the deal if needed, but it also locks the seller into the agreement. Don’t worry—the seller cannot back out during this time as long as you abide by the contract.
Step 2: Scheduling and Attending the Inspection
While inspections aren’t mandatory, they are highly recommended. Even for a brand-new home, a professional inspection can uncover issues you might not have noticed during your initial walkthrough.
You’ll want to schedule your inspection ASAP to ensure it’s completed before your option period expires. Your realtor will likely have a list of trusted inspectors to recommend. You don’t have to be present for the entire inspection, but it’s a good idea to show up around two hours after it starts. This way, you can hear the inspector’s insights firsthand and ask any questions you may have. Your realtor will likely join you for support and guidance through the process.
Step 3: Understanding the Inspection Report
After the inspection, you’ll receive a detailed report, often with 15+ pages filled with findings. While this may feel overwhelming, remember that the inspector’s job is to point out every minor issue—small and large. Just because the report is long doesn’t mean the house is falling apart. It’s simply a list of things that need attention, some of which may be cosmetic and others that may require more immediate action.
Your goal during this phase is to focus on big-ticket items or red flags—things like foundation issues, roof damage, or electrical/plumbing problems. Small cosmetic repairs are common and not typically a deal-breaker. For example, if the inspector flags an aging roof, this doesn’t mean you shouldn’t proceed, but you should consider how much it would cost to replace it and negotiate accordingly.
Step 4: Negotiating Repairs or Credits
Once you’ve gone through the inspection report, you’ll meet with your realtor to discuss the findings and decide on next steps. In most cases, there will be some form of negotiation with the seller. You might ask the seller to:
• Make repairs before closing (e.g., fixing a leaking pipe).
• Offer a seller credit so you can address the repairs yourself after closing (e.g., funds for a new roof).
You can also ask for a combination of both—perhaps a seller credit for less urgent issues and repairs for immediate concerns. Remember, there’s no guarantee the seller will agree to any requests, but it doesn’t hurt to ask. The worst they can say is “no.”
Step 5: Finalizing the Deal
Once you’ve sent your repair or credit requests, negotiations may take a few days. The seller could agree to your requests, counteroffer, or reject them outright. If you reach an agreement, your realtor will draft an amendment to the contract, which both you and the seller will sign. At this point, you’re officially moving forward with the house!
If you and the seller can’t reach an agreement, you may choose to walk away from the deal. In this case, you’ll get your earnest money back, but the option fee is non-refundable.
Step 6: Celebrate!
Once the negotiations are complete, and you’re moving forward, it’s time to celebrate! You’ve officially navigated the challenging inspection and negotiation process, and you’re one step closer to owning your new home.
Stay tuned for the next video, where we’ll walk you through what happens after the option period ends and what you can expect as you get ready for closing!
