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.”

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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