Five things to remember about inspection notices

Writing a good inspection notice is somewhat of an art. Use this list to make sure you don’t forget something that could hurt your buyer in the long run. Taking the time to do things correctly up front will save you major headaches before and after closing.

If you'd like to download this list as a printable PDF, scroll to the bottom of the page.

1. Be specific

The more clearly you can describe the problem, the less likely the seller is to misunderstand and freak out. Refer to the inspection report, and remember that providing pictures is always helpful.

2. Request a licensed and insured contractor

This is not always necessary for all repairs, but the last thing you need is the homeowner doing electrical work or attempting similarly risky repairs.

3. Get documentation

Request receipts or invoices for all of the work done, and on big items—such as roofing or carpet—request a transferable warranty.

4. Re-Inspection

Be sure to stipulate a re-inspection opportunity for the buyer or inspector to check out the repairs.

5. Credit for repairs

If you are requesting a credit for repairs, be sure to verify with the lender that this will go through underwriting. Once the buyer and seller sign off on a credit, if the lender says “no go,” you'll be in a real mess.

Comments (1)

some clarifications

According to the attorneys for AAR, we cannot request a credit for repairs (it's not in the contract), we also cannot ask to renegotiate price and we cannot require a licensed and insured contractor. Pat Noble

Posted by Pat Noble on November 21, 2012 | 3:52 PM

Thank you Pat

Thank you Pat for the clarification. We work hard to deliver pertinent content and tips for agents in all states. This particular post was originally written for agents in Colorado where it is legal and current practice. We will do our best to post a clarification for Arizona agents and as always we appreciate your feedback.

Posted by Breakthrough Broker on November 23, 2012 | 2:52 PM

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