Understand What Failed Means

No home passes or fails an inspection officially. Inspectors report conditions, they do not grade them. A failed inspection typically means the inspector found issues that are expensive to repair, safety hazards, or structural concerns that change the value proposition of the home.

Your Options During Due Diligence

Request repairs from the seller, request a price reduction to account for repair costs, request closing cost credits, accept the property as-is if the issues are manageable, or terminate the contract and lose only the due diligence fee. All options are on the table during due diligence.

How To Negotiate Repairs

Your agent prepares a repair request or amendment listing specific items. Focus on safety issues, structural concerns, and expensive system failures rather than cosmetic items. Sellers respond better to reasonable, prioritized requests than to long lists of minor complaints.

When To Walk Away

Structural foundation issues with unclear repair costs, active water intrusion with mold, failing septic systems, knob-and-tube or aluminum wiring requiring full replacement, and environmental contamination are all situations where walking away may be the right call.

Getting Specialist Inspections

If the general inspection reveals potential issues, bring in specialists. A structural engineer for foundation concerns, a licensed roofer for roof issues, a licensed plumber for sewer scope, and a licensed electrician for wiring concerns. These specialist reports give you accurate repair costs for negotiation.

Timeline Pressure

Everything must happen before your due diligence deadline. Schedule your initial inspection within the first 5-7 days so you have time for specialist follow-ups and negotiations. Oasis Realty Group coordinate the entire inspection timeline to protect your deadline.

Common Questions