The Inspection Report Is In: How Mid-Michigan Sellers Can Handle Repair Requests

You've accepted an offer, the champagne is chilling, and then the buyer's inspection report lands in your inbox. It might be 40 pages long. Take a breath. A long report doesn't mean your sale is in trouble.

The inspection is the stage where a lot of deals in Genesee County and the surrounding areas either settle in or start to wobble. Whether your home is in Fenton, Grand Blanc, Flint, Davison, Flushing, Linden, Holly, or Swartz Creek, here's how I help sellers read the report, sort what matters, and respond in a way that keeps the deal moving.

What the Inspector Is Looking At

The National Association of REALTORS® describes a home inspection as an assessment of the home's structure, exterior, roof, plumbing, electrical, heating and air conditioning, interiors, ventilation and insulation, and fireplaces. It may also include tests for things like mold, radon, lead paint, and asbestos (NAR: Home Inspections).

Inspections aren't required, but most buyers make their offer contingent on one. Buyers typically pay for it, and the inspection itself usually takes at least two to three hours (NAR: Home Inspections).

One Michigan-specific note: the state doesn't license or regulate home inspectors, so there's no state-required training or exam (ASHI: Michigan Requirements). Reports can vary a lot in quality. If something in the buyer's report looks off, it's fair to get a second opinion from a licensed contractor before you agree to anything.

Sort the Report Into Three Piles

NAR notes that inspection reports cover current conditions plus maintenance tips and ideas for future updates (NAR: Home Inspections). That's why reports run long. When I go through one with a seller, I sort every item into one of three piles:

• Safety and major systems. Structural or foundation concerns, drainage problems, faulty wiring, furnace or AC trouble, and missing smoke or carbon monoxide alarms. NAR lists these among the common issues inspectors look for, and points out that faulty wiring can even affect whether a home can be insured (NAR: Home Inspections). Expect buyers to ask about these.
• Things to keep an eye on. An older water heater that still works, a roof with some life left, a slow drain. These are worth knowing about, but they usually aren't defects.
• Cosmetic and maintenance items. Caulking, a loose cabinet door, worn paint. Most buyers understand these come with any home that's been lived in.

Sorting this way keeps everyone focused on what really matters, and it makes your response easier to explain.

Your Four Basic Options

When a buyer sends a repair request, a seller can usually respond in one of these ways:

• Make the repair before closing. You stay in control of who does the work. Use licensed, qualified contractors, keep the receipts, and give copies to the buyer.
• Offer a credit or a price reduction. The buyer handles the repair after closing, which many buyers prefer because they get to choose the contractor. Any closing-cost credit has to fit the buyer's loan rules, so I always confirm with the buyer's agent and lender before we put a number in writing.
• Meet in the middle. Fix the safety items yourself and offer a credit for the rest, or split the cost of a bigger item.
• Decline. You're not required to agree to every request. Just understand that if the buyer's inspection contingency is still open, they may be able to walk away under the terms of the purchase agreement.

If you listed your home "as is," NAR explains that it means you aren't making guarantees about the condition and have decided not to make repairs, even if the buyer gets an inspection (NAR: Home Inspections). Buyers can still inspect and decide whether to move forward.

Radon Comes Up a Lot in Michigan

According to Michigan's Department of Environment, Great Lakes, and Energy (EGLE), about one in four Michigan homes has radon above the EPA's action level of 4.0 picocuries per liter, and in some counties it can be as many as half (EGLE: Radon in Real Estate Transactions). So don't be surprised if a buyer's radon test comes back high.

The good news is that EGLE says radon levels can almost always be reduced and calls it "not a good reason to walk away from the deal." The buyer might ask you to fix it, take the home as is, share the cost, or have money held in escrow for a retest (EGLE: Radon FAQ). Michigan doesn't license radon testers or mitigators either, so EGLE encourages hiring someone certified by the National Radon Proficiency Program or the National Radon Safety Board (EGLE: Radon Contractors).

When the Buyer's Loan Has Its Own Rules

If your buyer is using an FHA loan, the appraisal does more than set a value. HUD says it also determines whether the property qualifies based on its condition (HUD: FHA Property Appraisal and Valuation). That means some repairs may be required by the lender, not just requested by the buyer. I'll let you know early if a buyer's loan type could bring that into play.

Don't Forget Your Disclosure

Michigan's Seller Disclosure Act requires disclosures to be made in good faith, which the law defines as "honesty in fact" (MCL 565.960). A seller can amend a disclosure in writing (MCL 565.962). If an amendment is delivered after a binding purchase agreement, the buyer can generally terminate within 72 hours of in-person delivery, or 120 hours if delivered by registered mail (MCL 565.954).

If the inspection turns up something you truly didn't know about, talk with me and, if needed, a Michigan real estate attorney about whether and how to update your disclosure, especially if the current sale doesn't close and you go back on the market.

Want Fewer Surprises? Consider a Pre-Listing Inspection

NAR notes that some sellers choose to have their home inspected before listing. It gives them information up front, more control over repairs, and a head start on conversations with buyers (NAR: Home Inspections). It isn't right for every home, but for an older house or one with a well and septic system, it can take a lot of stress out of the process.

Thinking About Selling?

Whether your home is in Fenton, Linden, Holly, Grand Blanc, Flint, Davison, Flushing, Swartz Creek, or nearby in Lapeer, Livingston, or Oakland County, I'll help you get ready before the inspection and walk through every repair request with you so you can respond with confidence. Give me a call at (810) 962-4908.

This post is general information, not legal, tax, or financial advice. Every contract and situation is different. Talk with your agent and, when needed, a Michigan real estate attorney before responding to a repair request or amending a disclosure.