Selling a home isn’t an easy process in most cases. Homeowners often have to jump through hoops in order to get their home off the market, and one of these hoops will have to be getting your home inspected. If the potential buyer is using a traditional financing method, such as an FHA mortgage or a conventional loan, then the bank issuing the loan will require an inspection. Most home inspectors will find some issue to include in their inspection report. Many times, these issues are minor. However, there are often times when an inspector will find a major issue that halts the mortgage process.
What Can Cause a House to Fail Inspection?
Home inspectors will provide the potential buyer and the homeowner with a list of things they find wrong with the house. There are a few problems that could halt the process. In many cases, these issues are considered to be ones that make the house unsafe to live in. Some may not seem that bad at the moment but can cause a significant amount of damage to the home if left unfixed.
The following areas could cause a home inspection to fail:
- HVAC problems
- Lead paint in the structure
- Water Heater
What to do if Your Home Inspection Fails
If your home inspector fails your house for any problem, you can consider the following options.
Your first option is to take care of the problem on your own. This is often the simplest option when you are trying to sell your house. Some problems, such as a new water heater, are not as expensive as others to fix. Other problems, like a leaking roof, could cost you thousands to repair. If you can’t afford to repair the problem, check out the next option.
It’s already expensive enough when you need to sell your home, and you may not have the money to put into pricey repairs. If this is your situation, talk to the buyer and see if they are willing to accept a reduction in the purchase price of the house if they take it as is. The lender will have to approve of this agreement. The FHA 203K is a loan program that allows home buyers to fix problems with a home after closing. This type of solution can add a few bumps to the process, but it is also a good way to make sure your home is sold as soon as possible without dumping a bunch of cash into it.
Another option to consider when your home needs major repairs is to start looking for cash buyers. Home inspections often fail because the banks want every component of the house to be in great shape before they approve a loan. If your house isn’t in the best condition and you cannot negotiate a solution with your buyer or buyers, you may want to start looking for a buyer who can pay in cash like Andrew The Home Buyer.
While cash buyers will usually want a discount if the home has a major issue, they won’t need to deal with a bank to buy the home. Indeed, this is a great option if you can’t pay for the repairs to fix the problems that caused your inspection to fail. You will also be able to close quickly when you have a cash buyer willing to pay for your home. You’ll often end up closing much faster doing a cash sale than you would have if you had stuck with a traditional home loan.