Fixing the Water Heater Is Only One of the Mandatory Repairs Sellers Are Responsible for After a Home Inspection 

Most buyers opt for a home inspection as it can help them uncover hidden problems and avoid costly surprises down the road.

As a seller, you should know that an inspection itself doesn’t legally require you to make repairs. However, some circumstances may require you to address certain issues before closing.

For example, a mortgage lender may require repairs, like fixing a broken water heater, before approving a loan. Other fixes may be necessary to comply with building codes or safety regulations. Unresolved issues could also cause a buyer to walk away.

Before you list your home, familiarize yourself with common repairs that may arise during an inspection so you know what to expect and how to prepare. 

Mandatory repairs that pop up before closing 

Not every issue requires a fix, but these problems can lead to repair requests or complicate the closing process.

Water heater concerns

The age of a water heater isn’t a defect on its own.

“A 14-year-old functioning unit usually gets noted as “budget for future replacement,” as its typical lifespan is around 10 to 15 years,” says Joe Barodin, owner and licensed home inspector at Modern Insight Home Inspections in Hicksville, NY.

What often needs correcting, however, is an active leak, a missing or improperly configured temperature and pressure relief (TPR) valve discharge pipe, or venting problems that can send carbon monoxide back into the house. 

“Those are safety issues, and fortunately, they’re usually inexpensive to fix,” adds Barodin.

Older and leaky roofs

Active leaks and older roofs typically need a repair. That’s because they can lead to structural damage and mold. They may also complicate home insurance coverage. 

“Some carriers won’t write a policy on a roof they consider too old or damaged. Nobody wants to find out after closing that no insurer will cover the house until the roof is replaced for $30,000,” Barodin explains.

Electrical defects

Exposed wiring, missing GFCI protection near water, and overloaded or improperly wired panels are all serious issues that usually need to be addressed. 

“Certain older panel brands, such as Federal Pacific and Zinsco, have a poor safety track record, and some insurers won’t cover a house that has one,” adds Barodin.

Heating concerns

Any heating system that doesn’t run, or one with carbon monoxide or venting problems, requires some serious attention.

“An old boiler or furnace that’s operating safely is a very different conversation,” Barodin explains.

Wood-destroying insects

Active termite or carpenter ant activity, especially with damage to structural framing must be resolved.

“Some lenders require a wood-destroying insect or WDI inspection, and active infestation or damage may need to be rectified before closing,” says Barodin.

Water intrusion and structural movement

Ongoing basement water, significant foundation cracks or movement, or rotted framing are all serious issues. 

“These usually call for a structural engineer’s evaluation before anyone can price the fix,” Barodin explains.

What to prioritize 

Before you sell your home, it’s important to recognize the difference between cosmetic issues and safety hazards that warrant repairs. 

When contemplating a repair, Barodin suggests you ask yourself this question: 

Does the condition affect safety, let water in, threaten the structure, or leave an essential system not working? 

“If so, it’s likely a priority, and a resolution may be required by a lender, insurer, or municipality. If not, it’s usually negotiable,” says Barodin.

Things like worn paint, cracked tiles, sticking doors, dated fixtures, and a 20-year-old furnace that runs fine also fall on the negotiable side. 

“Buyers of a 70-year-old house shouldn’t expect a new-construction punch list,” adds Barodin.

How to address repairs 

For small safety fixes revealed by the inspection, like a TPR discharge pipe, GFCI protection, or missing smoke and CO detectors, you’re usually better off doing the work before closing and keeping the receipts as proof.

However, for larger items like a leaky roof or faulty electrical panel, a credit may make more sense, since the buyer can then choose the contractor and control the quality of the work.

If you do go the credit route, don’t just write it into the contract and call it a day. 

“The better approach is to get everyone on board with the structure of the credit as early as possible. That way an inspection issue is less likely to become a closing issue,” says Dell Jeanty, real estate agent at Dell Residential in Arlington, VA.

A pre-listing inspection could also make sense, especially if you have an older home. That way, you can deal with significant issues on your own timeline. 

“Line up licensed contractors and permits early, get estimates in writing, and keep documentation of completed work,” says Barodin.

“If you take care of repairs before listing, the report will come back with fewer problems, giving the buyer more confidence to move forward and close without renegotiations,” says Charles Furlough, president and CEO of Pillar To Post® Home Inspectors in Tampa, FL.