It's crucial to have a comprehensive home inspection before purchasing a house, condo, townhouse, or cabin. Of course, it would be a miracle if the inspector wasn't able to identify any issues, since even new homes are known to have defects, however minor they may be.

But who's responsible for fixing the problems found on a home inspection, and which of the repairs are mandatory? Here's what you should know as you navigate the home inspection process, with a little help from

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Repairs aren’t mandatory after a home inspection

Almost three in five home purchases are contingent upon a home inspection being completed, but that doesn’t mean that any problems found are going to be repaired. An inspection itself isn’t binding on the seller to correct any of the issues. In fact, the seller isn’t obligated to perform any of the repairs if they choose not to.

Once the inspector has

released the findings

, it’s up to the buyer how they wish to proceed. There are four possible outcomes:

The buyer continues with the purchase and declares the condition of a home inspection satisfied.

The buyer places a counteroffer based on negative results found during the inspection which the seller can choose to take or not.

The buyer can request that the seller complete certain repairs based on items found on the inspection. Again, the seller can determine whether the request is acceptable or not.

The buyer can walk away from the deal altogether, dissatisfied with the results found.

That’s not the end of it, though. In certain states, the law requires sellers to disclose any major issues that they are aware of. Otherwise, they can be held financially responsible for the repair. It’s the case with things like obvious mold, severe water damage, and apparent foundation damage. These types of concerns are usually dealt with when an inspection is performed.

MORE: How to negotiate price after a home inspection

Determining who will pay for repairs from a home inspection

Whether you’re talking about key structural issues or minor plumbing and electrical deficiencies, hiring a contractor to repair the problems can be costly. If you’re the buyer, it could be more than you’re willing to take on unless the seller is picking up all or part of the repair tab.

If you’ve made your deal contingent on a home inspection, you’re in a position where you can request that the seller pays for the repairs. If they accept, it takes any of the guesswork about costs out of the equation and you can continue on with your purchase. Alternatively, you can ask the seller for a discount on the purchase price, essentially renegotiating the terms of the sale to account for the expected repair expense.

But if the seller decides they aren’t willing to complete the repairs or lower the selling price, it’s up to the buyer to decide what they’re going to do. That’s when the four options above come into play.

If you’ve agreed to buy the house "as-is" and you choose not to go through with the sale, that’s a different situation altogether. There’s likely up to 10% of the purchase price in escrow as a deposit for the purchase, and if you decide not to go through with the sale you could forfeit part or all of the funds in escrow.

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Should you buy a home warranty?

Another option to consider is a home warranty. The buyer can request that the seller includes a home warranty that covers major components and appliances in the home for repair or replacement for a set period of time.

For around $600 per year or so, a

home warranty

plan can be a cost-effective option that satisfies both the buyer and seller, rather than touchy negotiations after a home inspection.

And for even more coverage, make sure you have the right home insurance package. You can get a good deal by bundling home and

car insurance

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https://getjerry.com/signup

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A licensed broker, Jerry does all the hard work of finding cheap quotes from the top name-brand insurance companies and buying new car insurance. Jerry will even help you cancel your old policy.

To ensure you always have the lowest rate, Jerry will send you new quotes every time your policy comes up for renewal, so you’re always getting the coverage you want at the best price.

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