Closing on a new home can be very exciting, but sometimes you encounter inspection debacles that can break the deal. As a seller, inspection surprises can catch you off-guard, forcing you to spend thousands before you can close. As a buyer, these surprises may prevent you from signing off on the home of your dreams.
The Most Common Inspection Findings
Not all inspection findings are deal-breakers — in fact, most are not. Common minor findings include improper caulking, missing GFCI outlets in bathrooms and kitchens, aging appliances, and minor plumbing drips. More significant findings include roof condition issues, HVAC system problems, evidence of water intrusion or mold, foundation cracks, outdated electrical panels (like Federal Pacific or Zinsco), and pest damage.
Understanding “Material Defects”
Real estate law distinguishes between cosmetic issues and material defects — problems that significantly affect the value or habitability of the home. Sellers are required by law in California to disclose known material defects. However, a seller may not know about every issue, which is exactly why the buyer’s home inspection is so critical.
What Can Be Negotiated?
Almost everything. When inspection findings come in, buyers can request that sellers repair specific items, provide a credit at closing, or reduce the purchase price. Sellers can agree, refuse, or counter. The key is focusing on significant issues that affect safety or the structural integrity of the home rather than cosmetic items that are common in any used home.
When to Walk Away
If inspection findings reveal problems too extensive or expensive to resolve — or if a seller refuses to negotiate on legitimate safety issues — it may be prudent to exercise your inspection contingency and walk away. This is a difficult decision in a competitive market, but it’s far better than inheriting a money pit. Your Avonya agent will help you assess the situation with clear eyes.
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