DIY Home Buyers & Sellers
The vast majority of Minnesota home Buyers and Sellers elect to settle any post-closing disputes thru arbitration rather than litigation.
The explanation?
It’s considered faster and cheaper.
The occasional exception: Buyers who are lawyers, are related to lawyers, or otherwise think they can procure the required legal services at a discount.
Resolving Inspection Issues: Two Options
Now consider what happens when the Buyer’s home inspection turns up material issues.
The usual resolution — assuming the Buyer still wants the house — is to negotiate an appropriate discount from the sales price.
That lets the Buyer pick their own contractor; direct the work (and quality of fix); and benefit from any warranty.
That’s instead of overseeing the Seller’s choice of contractor; inspecting the final result; verifying that the Seller has paid the contractor(s) and obtained any necessary lien waivers, etc.
Of course, shifting the work to the Buyer, post-closing, also has the virtue of relieving harried Sellers of one (or five) more pre-closing tasks.
“I’ll Do It!” “No, I’ll Do It”
So, when do Sellers prefer to tackle any inspection issues themselves?
Surprise, surprise, when they know a contractor (Sibling? In-law’s? Buddy?) who can do the work at a discount.
Personally, I’d rather be related to the contractor . . . 🙂
P.S.: if any of the inspection issues are hazardous — e.g., a defective electric service panel — the Buyer’s lender may force the parties’ hand, and require that the repair be done prior to closing.
See also, “The Difference Between a Home Inspection Addendum and a Repair List“; “Handling Issues That Come Up on Inspection: Two Options“; and “Home Buyer’s Inspection: When to Bring In Reinforcements.”
