- Buyer, Buyer’s Agent, and inspector find a mutually agreeable time.
- Buyer’s Agent calls Seller’s Agent to make sure the time is agreeable with the Seller. Since the Seller and any pets should be gone for the inspection, it can get complicated to schedule a time that works for everyone.
- Buyer, Buyer’s Agent, and inspector are present for the inspection, which usually takes 2 to 2 ½ hours or more, depending on the size of the property and whether it’s a condo, townhouse, or single-family home. It can take a lot longer if it’s a farm or other property with multiple buildings.
- After the inspection, the inspector gives the Buyer (and usually the Buyer’s Agent) a copy of the report.
- Buyer and Buyer’s Agent discuss the report and decide what issues, if any, the Buyer wants to ask the Seller to correct.
- Buyer’s Agent prepares an Inspection Objection form and sends it to Seller’s Agent after the Buyer signs it. This must get to the Seller on or before the Inspection Objection Deadline (Section 3, Item 25 in the Colorado purchase contract).
This Inspection Objection generally includes only major problems that are either safety issues or would cost a lot of money to fix. Sometimes, though, the Buyer asks for a “laundry list” of repairs: everything the inspector identifies, regardless of how trivial it may seem.
- Seller’s Agent reviews the Inspection Objection form with the Seller and they prepare an Inspection Resolution form together. The Seller has three options:
- Agree to correct every issue on the Inspection Objection, or
- Agree to fix some but, not all, of the issues, or
- Decline to fix any of the issues.
- Since all that is needed is an agreement between Buyer and Seller that there is a resolution of the objection issues, “a.” above will provide that resolution, while “b.” or “c.” above will require a choice by the Buyer to get to a resolution.
Seller now has until closing, or whatever time specified in the Inspection Resolution, to complete the repairs they agreed to do.
Typically, the Buyer’s lender waits until there is an inspection resolution before ordering the appraisal, so the Buyer is not stuck with paying for an appraisal ($500 or more) for a house they don’t want to buy.