What Happens If an Inspection Reveals Undisclosed Issues?

San Francisco Real Estate Podcast with Durwin Cheung

Home inspections are an important and common part of the home buying process. However, if you get the inspection report back and find issues that weren't disclosed by the seller, things can get complicated.

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An inspection is an important part of the home buying process. So, what do you do when you get the inspection report back with an issue that wasn't disclosed by the seller? It could be an issue with a leaky roof or termites, for example.

Your first step is to talk to your Realtor to find a professional who specializes in a given area who can give you a proper bid on the cost of repair for the damages.
So say you get a bid to repair a roof for $3,000. At that point, your agent would ask the seller's agent for either a $3,000 credit or a price reduction. Typically, I don't want to ask the seller to repair the issue because they usually won't want to do that. Usually, they just want to sell the property and move on. Even if they agree to take on the repair, they probably won't find the best person for the job like I can.

Sellers usually just want to sell the property and move on, not make a bunch of repairs.

If the seller says no to your credit request, you can start negotiating. For one, you could say you won't buy the house if they don't provide the credit. Many times, it won't go that bad; the buyer and seller will often meet somewhere in the middle to find a credit amount that's agreeable to both parties.
Ideally, you'll have a strong Realtor on your side who can negotiate as much as possible for you to get the most money back.
If you have any questions about this topic or you're thinking of buying or selling a home here in San Francisco, give me a call or send me an email. I'd be glad to help.