What Buyers and Sellers Should Expect During Escrow

I missed last week’s blog because I became a grandma! 💕 Needless to say, real estate had to share the spotlight for a few days while our family celebrated this very special new addition.

But I’m back this week, and I wanted to talk about something that comes up in almost every real estate transaction: the home inspection.

Whether you are buying or selling a home in Santa Clarita, the inspection period can sometimes feel a little overwhelming. Buyers may suddenly be looking at a long report filled with things they never noticed before, while sellers may feel like every little item in their home is suddenly under a microscope.

The important thing to remember is this:

A home inspection is not a pass or fail test.

It is designed to help the buyer better understand the condition of the property and make informed decisions during escrow.

What Happens on the Buyer Side?

Once escrow opens, buyers typically schedule a general home inspection during their investigation period.

The inspector will look at many of the home’s visible and accessible components, including things such as:

• Roof
• Plumbing
• Electrical
• Heating and air conditioning
• Water heater
• Appliances
• Windows and doors
• Attic and crawl spaces when accessible
• Exterior conditions
• Safety-related items

Depending on the home and what the general inspection uncovers, a buyer may also choose to have additional inspections performed.

These could include a roof inspection, sewer inspection, pool inspection, chimney inspection, HVAC inspection, mold inspection, foundation evaluation or another specialist.

And yes, the inspection report can look scary.

Even a well-maintained home can produce a very long report because inspectors document everything they observe, including smaller maintenance items.

This is where perspective becomes important.

What Can a Buyer Do After the Inspection?

Depending on the terms of the purchase agreement and the buyer’s contingencies, the buyer may decide to:

• Accept the property in its current condition
• Request certain repairs
• Request a seller credit
• Request additional inspections
• Continue investigating a specific issue
• Negotiate certain items with the seller

Every transaction is different.

The goal should not necessarily be to hand the seller a list of every minor item in the report.

Instead, I encourage buyers to focus on the things that truly matter.

Major systems, safety concerns, water intrusion, structural issues, electrical problems, roof concerns and anything that could potentially affect financing or insurance generally deserve more attention than normal cosmetic wear.

Remember, you are usually buying a home that someone has lived in, not a brand-new house straight out of a showroom.

What Happens on the Seller Side?

For sellers, getting a repair request after an inspection can sometimes feel personal.

Try not to take it that way.

The buyer is learning about the property, often in much greater detail than they were able to during their original showing.

A repair request also does not automatically mean the seller has to agree to everything being requested.

The buyer and seller can negotiate based on the purchase contract, the condition of the property and the specific circumstances of the transaction.

When I represent a seller, I like to look at the inspection request carefully.

Which items are legitimate concerns?

Are there safety issues?

Could something affect the buyer’s financing or insurance?

Is there something that truly needs to be repaired?

And which items are simply normal wear and tear or cosmetic?

Sometimes it makes more sense to complete a repair.

Other times a credit may make more sense.

And sometimes the best response may be to leave an item as-is.

What Sellers Can Do Before the Inspection

There are a few simple things sellers can do to make inspection day go more smoothly.

Make sure the inspector can easily access the electrical panel, water heater, HVAC equipment, attic access and other important areas.

Replace burned-out light bulbs.

Clear items away from sinks and plumbing areas.

Make sure utilities are turned on.

If there are small maintenance items you already know about and can easily correct, taking care of them beforehand can help.

A little preparation can prevent unnecessary questions later.

What I Tell Buyers Before Their Inspection

If possible, I encourage buyers to attend at least part of the inspection.

Ask questions.

Let the inspector explain what they are seeing.

And most importantly, do not panic when you receive the report.

A home inspection report can easily be dozens of pages long.

That does not necessarily mean the home is in bad condition.

The purpose is to educate you about the property so you can make good decisions moving forward.

The Inspection Is Often Where Good Representation Really Matters

The inspection period is one of the points during escrow where emotions can quickly take over.

Buyers want to make sure they are protected.

Sellers do not want to feel like they are being asked to rebuild their entire house.

This is where experienced representation can make a huge difference.

My goal is always to help my buyers understand what they are purchasing, help my sellers evaluate requests fairly and keep everyone focused on finding reasonable solutions.

Because ultimately, a successful escrow is not about one side “winning.”

It is about getting the buyer, seller and property successfully to closing.

If you are thinking about buying or selling a home in Santa Clarita and have questions about inspections, contingencies or what actually happens once escrow opens, I’m always happy to help.

Wendy Gundry
RE/MAX of Santa Clarita
Local Since 1981
Helping Families Buy & Sell Since 1996
Serving your real estate needs at a higher level
DRE #01250162