Step 1: Understand Illinois Contract Timelines
Illinois real estate contracts include specific periods that affect inspection follow-up.
Attorney Review Period
Standard Illinois contracts include a 5-business-day attorney review period during which either party's attorney can modify or terminate the contract. This period provides opportunity to address inspection findings. Coordinate your inspection to occur early enough that results are available during this window.
Inspection Contingency
Separate from attorney review, contracts typically include an inspection contingency period (often 5-10 days). This specifies when inspection must be completed and when objections must be raised. Know your specific deadlines.
Coordination Strategy
Best practice: schedule inspection within days of contract acceptance, receive report promptly, and have findings available for attorney review discussions. Waiting until late in the period leaves no room for specialist evaluations or complications.
Step 2: Review the Full Report
Inspection reports for Chicago properties can run 50-70+ pages. Thorough review is essential.
Report Organization
Most reports categorize findings by severity:
- Safety concerns: Require immediate attention
- Major defects: Significant system or structural issues
- Recommended improvements: Suggested updates
- Maintenance items: Normal upkeep
- Informational notes: Things to know
Focus first on safety concerns and major defects.
Chicago Context
Evaluate findings in Chicago context:
- Basement moisture evidence: Nearly universal; evaluate management systems
- Foundation settling: Common in older buildings; distinguish stable from active
- Masonry pointing needs: Expected maintenance for brick buildings
- Aged systems: Consider building age when evaluating remaining life
Step 3: Arrange Specialist Evaluations
When the inspection recommends further evaluation, arrange these promptly.
Structural Engineer
For foundation concerns in masonry buildings, structural engineer evaluation ($400-600) provides expert assessment. This is particularly valuable for graystones and older buildings where foundation condition significantly affects value.
Sewer Line Scope
If not included in your inspection, camera inspection of the sewer line ($200-400) identifies problems in Chicago's aging infrastructure before they cause backups. Strongly recommended for older properties.
Electrician or HVAC Contractor
When systems need detailed evaluation, licensed contractors can provide condition assessments and estimates. Many provide free estimates, which helps with negotiation documentation.
Step 4: Get Cost Estimates
Documented costs support negotiation positions.
Priority Items for Estimates
Get written estimates for:
- Foundation or structural repairs if recommended
- Sewer line replacement if scope reveals problems
- Electrical panel or system updates
- HVAC replacement if aging
- Waterproofing if basement water management is inadequate
- Masonry/tuckpointing work
Chicago Repair Cost Ranges
For reference, typical Chicago repair costs:
- Sump pump replacement: $800-1,500
- Interior drain tile: $4,000-8,000
- Tuckpointing: $15-30 per square foot
- Sewer line replacement: $6,000-15,000
- Electrical panel upgrade: $2,000-4,000
- Foundation crack repair: $500-1,500 per crack
Step 5: Work with Your Attorney
Your attorney plays a key role in post-inspection negotiations.
Attorney Review Modifications
Based on inspection findings, your attorney can request modifications to the contract during attorney review. These might include price reductions, seller credits, required repairs, or extended due diligence for further investigation.
What to Prioritize
Focus attorney discussions on:
- Safety issues requiring correction
- Significant defects not disclosed by seller
- Items affecting habitability or value
- Major system concerns near end of life
Don't waste negotiating leverage on cosmetic issues or normal maintenance.
Negotiation Strategy
Your attorney can advise on negotiation approach:
- Which items warrant requests
- Whether to request repairs or credits
- How to respond to seller counter-offers
- When walking away makes sense
Step 6: Navigate Resolution
After raising concerns, negotiation proceeds toward resolution.
Possible Outcomes
Seller agrees: Contract is modified with repairs or credits, and transaction proceeds.
Seller counters: Alternative proposal is made, requiring your evaluation.
Seller refuses: You decide whether to proceed as-is, continue negotiating, or terminate.
Repairs vs. Credits
Credits give you control over contractor selection and work quality. Repairs ensure work is done before closing but with seller's contractor. For significant items in Chicago (foundation work, waterproofing, sewer replacement), credits are often preferable.
Termination Rights
During attorney review, either party can terminate for any reason. After that period, termination rights depend on specific contingencies. Know your options before negotiations conclude.
Step 7: Document Everything
Maintain records of the inspection process:
- Keep the full inspection report and photos
- Save specialist reports and contractor estimates
- Document negotiation correspondence
- Retain copies of contract modifications
This documentation supports future warranty claims, insurance needs, and eventual resale.
Chicago-Specific Post-Inspection Considerations
Several Chicago factors affect post-inspection decisions:
- Basement water: Don't panic at moisture findings—evaluate whether the management system is adequate and what improvements might cost
- Building age context: Findings typical for a 120-year-old graystone differ from what's concerning in a 20-year-old construction
- Multi-unit implications: For two-flats and three-flats, consider how findings affect both your unit and building-wide responsibilities
- Permit status: Unresolved permit issues on renovated properties can affect insurability and resale