Home Inspection is Done, Now What? Your Next Steps Explained

You’ve just wrapped up your home inspection, and now you’re probably wondering, “What’s next?” Whether you’re a first-time homebuyer or you’ve been through the process before, knowing what to do after the inspection can feel a bit overwhelming. After all, a home inspection is a critical step in the home-buying process that can influence your final decision to move forward with the purchase—or renegotiate the deal. So, the home inspection is done—now what? Let’s walk through the next steps together to ensure you’re making informed decisions about your future home.

1. Review the Home Inspection Report Thoroughly

The first thing you’ll receive after the inspection is the inspection report. This document is a detailed account of the inspector’s findings, including photos, descriptions, and recommendations for any issues discovered. Here’s what you should do:

Take Your Time: Don’t rush through the report. Take your time to read it carefully. Pay attention to the summary of major issues, but also review the details, as even small problems can escalate if not addressed.

Understand the Terminology: Inspection reports can be filled with technical terms and jargon. Don’t hesitate to ask your real estate agent or the inspector to clarify anything you don’t understand. It’s essential that you fully grasp what each finding means for your potential new home.

Prioritize the Issues: Not all findings will require immediate attention. For instance, cosmetic issues like chipped paint or minor wear and tear are common and may not be a dealbreaker. However, significant issues like a damaged roof, faulty electrical wiring, or structural problems need to be prioritized. Make a list of items that concern you the most and might impact your decision to proceed with the purchase.

2. Consult with Your Real Estate Agent

Your real estate agent plays a crucial role in helping you navigate the post-inspection process. After you’ve reviewed the inspection report, it’s time to have a detailed discussion with your agent. Here’s how they can assist:

Understanding the Impact: Your agent can help you assess which issues are serious enough to warrant renegotiation or whether they’re manageable within the scope of the sale. They’ll also advise you on typical expectations for repairs or concessions in your local market.

Creating a Plan of Action: Based on the inspection report, your agent will help you develop a strategy for moving forward. This could include requesting repairs, asking for a price reduction, or, in some cases, deciding to walk away from the deal if the issues are too extensive.

Negotiating with the Seller: If repairs or concessions are needed, your real estate agent will take the lead in negotiating with the seller’s agent. They’ll use the inspection report as leverage to request either specific repairs, a reduction in the sale price, or a credit towards closing costs to cover the repairs after the sale.

3. Decide on Your Next Steps

After discussing the inspection report with your agent, you’ll need to make some decisions. Here are the most common paths forward:

Request Repairs: If the inspection uncovers significant issues, the most straightforward option is to ask the seller to make the necessary repairs before closing. This is typically done through a repair request, which your agent will draft and send to the seller’s agent.

Negotiate a Price Reduction or Credit: Sometimes, rather than asking the seller to make repairs, you might prefer to negotiate a price reduction or request a credit at closing. This gives you the flexibility to handle the repairs yourself, potentially allowing you to oversee the quality of the work or choose your own contractors.

Proceed As-Is: If the issues found during the inspection are minor or you’re buying the home “as-is,” you might decide to move forward without requesting any repairs or concessions. This is often the case in competitive markets where sellers have multiple offers and are less likely to negotiate.

Walk Away: In some cases, the inspection may reveal problems that are dealbreakers, such as significant structural issues, major water damage, or outdated systems that are too costly to replace. If the cost of repairs is too high or the risk is too great, it might be in your best interest to walk away from the deal.

4. Schedule Follow-Up Inspections if Necessary

In certain situations, the home inspection may uncover issues that require further evaluation by a specialist. Here are a few examples:

Structural Engineer: If the inspector finds signs of foundation issues, cracks in walls, or other structural concerns, they may recommend a follow-up inspection by a structural engineer. This expert can provide a more detailed assessment and estimate the cost of repairs.

Pest Inspection: If there’s evidence of termite damage, wood rot, or other pest-related issues, a pest inspection is necessary to determine the extent of the problem and what treatment is required.

HVAC, Plumbing, or Electrical Specialists: For problems related to the home’s systems—like the heating and cooling, plumbing, or electrical—a specialist may need to conduct a more thorough inspection to identify the exact nature of the issue and the necessary repairs.

5. Make a Final Decision

Once you’ve reviewed the inspection report, consulted with your agent, and potentially conducted follow-up inspections, it’s time to make your final decision. Here’s what to consider:

Cost of Repairs: Weigh the cost of repairs against the asking price of the home. If the cost is manageable and you still love the property, proceeding might make sense. However, if the repairs are too expensive or extensive, it could be wise to reconsider.

Investment Potential: Consider the long-term value of the property. If the home needs significant work but is in a desirable location and has strong potential for appreciation, investing in repairs might still be a good decision.

Personal Tolerance for Risk: Finally, think about your own comfort level with risk and uncertainty. Buying a home with known issues can be stressful, and you need to be honest with yourself about whether you’re willing to take on that challenge.

6. Finalize Your Negotiations

If you’ve decided to move forward with the purchase, it’s time to finalize any negotiations based on the inspection results. Here’s how to proceed:

Repair Agreement: If the seller agrees to make repairs, ensure that there’s a clear agreement in place, outlining what will be repaired, by whom, and when. Your agent will help ensure this agreement is added to the contract.

Price Reduction or Credit: If you’ve negotiated a price reduction or a credit for repairs, this needs to be formally documented in the purchase agreement. Make sure the terms are clear and agreed upon by both parties.

Get Everything in Writing: Whether it’s repairs, credits, or any other agreement, make sure it’s all in writing. Verbal agreements can lead to misunderstandings or disputes, so it’s crucial that all negotiations are documented.

7. Schedule a Final Walkthrough

Before closing on the home, you’ll have the opportunity to do a final walkthrough. This step is your last chance to ensure the property is in the condition you expect and that any agreed-upon repairs have been completed. During the final walkthrough:

Check for Repairs: Verify that any repairs the seller agreed to have been completed to your satisfaction. Bring your inspection report and repair agreement to ensure all items have been addressed.

Look for New Issues: Even if the inspection went well, the walkthrough is your chance to check that no new problems have arisen since the inspection. Look for any signs of damage, like water leaks or missing fixtures, that weren’t present during the initial inspection.

Confirm the Condition: Make sure the home is in the same or better condition than when you last saw it. All agreed-upon appliances, fixtures, and other items should still be in place.

8. Proceed to Closing

Once the inspection, negotiations, and final walkthrough are complete, it’s time to move forward to closing. Here’s what to expect:

Review the Closing Documents: Before signing anything, review all closing documents carefully. This includes the final purchase agreement, loan documents, and any other paperwork related to the transaction. Your agent and closing attorney will guide you through this process.

Sign the Papers: Once you’re satisfied with the documents, you’ll sign the necessary papers to complete the purchase. This is often done at a closing meeting, where you’ll also pay your closing costs and receive the keys to your new home.

Celebrate: Congratulations! You’re now the proud owner of your new home. Take a moment to celebrate this milestone—buying a home is a significant achievement.

The Home Inspection is Done—What’s Next?

After the home inspection, there’s still work to be done before you can finalize your purchase. By carefully reviewing the inspection report, consulting with your agent, negotiating repairs or concessions, and conducting a final walkthrough, you can ensure that you’re making a sound investment. Whether you decide to move forward with the purchase, renegotiate the deal, or walk away, taking these steps will help you make the best decision for your future.