Step 1: Review the Full Report
Inspection reports can run 30-50+ pages with photos and descriptions of every finding. It's tempting to skim, but a thorough review is essential.
Reading the Report Effectively
Most inspection reports categorize findings by severity. Common categories include:
- Safety hazards: Items requiring immediate attention (electrical hazards, gas leaks, structural dangers)
- Major defects: Significant system or structural issues affecting function or value
- Improvement items: Recommended updates but not urgent concerns
- Maintenance items: Normal upkeep needs
- Informational: Things you should know but aren't defects
Focus first on safety hazards and major defects. These categories typically drive negotiation discussions.
Understanding the Photos
Photos in inspection reports document specific conditions. Review them alongside the written descriptions to understand exactly what the inspector observed. If a photo isn't clear or you can't identify what's being shown, call your inspector for clarification.
Step 2: Categorize Your Concerns
Create your own list of findings that concern you, organized by priority.
High Priority Issues
These warrant negotiation or further evaluation:
- Foundation problems showing active movement
- Electrical panels with known safety issues (Federal Pacific, Zinsco)
- Active water intrusion or significant moisture damage
- HVAC systems near end of life
- Roof damage requiring near-term replacement
- Plumbing issues like polybutylene piping
Medium Priority Items
Consider these in negotiation but they may not be deal-breakers:
- Aging but functional systems
- Deferred maintenance that's accumulated
- Code issues that were acceptable when built but don't meet current standards
Lower Priority Findings
These typically don't warrant negotiation:
- Cosmetic issues
- Normal wear for the home's age
- Minor maintenance items
- Personal preferences (paint colors, fixture styles)
Step 3: Schedule Additional Evaluations
When the inspection report recommends specialist evaluation, arrange these promptly. Your due diligence period is limited.
Common Specialist Inspections
Structural engineer: For foundation concerns, significant settling, or major structural questions. Costs $300-600 in Atlanta.
Licensed electrician: For outdated electrical panels, aluminum wiring, or significant electrical concerns. Often provide free estimates.
HVAC contractor: For detailed evaluation of heating and cooling systems, including remaining lifespan estimates. Free estimates are common.
Roofing contractor: For roof damage or condition assessment. Free estimates typical, though some charge for detailed reports.
Plumber: For sewer line scope (if not included in inspection) or detailed plumbing evaluation. Sewer scope costs $200-400.
Getting Contractor Estimates
For negotiation purposes, get written estimates for significant repairs. Aim for at least two estimates on major items. Be clear that you're a prospective buyer seeking estimates for negotiation—contractors understand this process.
Step 4: Prepare Your Repair Request
Work with your real estate agent to develop an appropriate repair or credit request.
What to Request
Focus requests on:
- Safety issues that must be addressed
- Significant defects that weren't disclosed or expected
- Items that affect lending (peeling paint on pre-1978 homes, safety hazards)
Avoid requesting:
- Cosmetic items or personal preferences
- Issues obvious before inspection (you knew the carpet was worn)
- Minor maintenance typical for the home's age
Repairs vs. Credits
You can request seller repairs or a credit at closing. Each has advantages:
Credits give you control over the work, let you choose contractors, and ensure repairs meet your standards. However, you need to have funds to pay for work initially (credit comes at closing).
Seller repairs are completed before closing, but you have less control over quality and may not know who did the work or whether it was done properly.
In Atlanta's market, credits are often preferred, particularly for items requiring skilled work.
Reasonable Expectations
The market affects negotiating power. In competitive Atlanta markets, buyers have less leverage. Consider:
- What would a reasonable seller agree to?
- Would another buyer accept these conditions?
- Are your requests proportional to the issue severity?
Step 5: Negotiate and Decide
Your agent presents your request, the seller responds, and negotiation proceeds from there.
Possible Outcomes
Seller agrees: Repair agreement or credit is added to the contract, and you proceed to closing.
Seller counters: They agree to some items, reject others, or offer different amounts. You evaluate and respond.
Seller refuses: You decide whether to proceed anyway, continue negotiating, or exercise your due diligence termination right.
When to Walk Away
Consider terminating if:
- Major issues exist that the seller won't address and you can't afford to fix
- Problems are more extensive than the property value can absorb
- You've lost confidence in the property
- Specialist evaluations reveal deal-breaking problems
Walking away isn't failure—it's the inspection contingency working as intended.
Step 6: Document Everything
Keep organized records of the inspection process:
- Save the full inspection report and all photos
- Keep copies of specialist reports and estimates
- Document all negotiation correspondence
- Retain receipts for any inspections you paid for
This documentation is valuable for future reference, insurance claims, and potential future sale of the property.
Georgia-Specific Considerations
Georgia real estate contracts have specific timelines that affect your post-inspection process:
- Due diligence period: Standard Georgia contracts include a negotiated due diligence period (typically 7-14 days) during which buyers can investigate the property and terminate for any reason
- Earnest money: If you terminate during due diligence, you typically receive your earnest money back
- Binding agreement date: Know this date and work backward to ensure you complete inspections and negotiations in time
Communicate clearly with your agent about deadlines. In Atlanta's fast-moving market, missing a deadline can affect your rights under the contract.