Step 20: J-1 Inspection Period: Credits and/or Repairs

The J-1 inspection period is the largest contingency for home buyers. This period is typically between 7-14 days (maximum of 15). This time is meant for a buyer to do their due diligence and if it is uncovered that the property condition is unacceptable then a buyer may cancel and they will get their initial earnest money deposit back.  

Asking for Credits or Repairs: After the home inspection is performed we will go over the items that the inspector pointed out and decide on if you would like to ask for credits or repairs, also referred to as “concessions”. Electrical, plumbing, and safety issues are what we typically try to address with the seller. If there are other “non-cosmetic” issues that would be fair to bring up, those may be added in as well. The current real estate market may affect what can be addressed or brought to the seller’s attention. 

No matter what the market conditions are, cosmetic issues such as paint colors, old sink faucets or door knobs are not typically addressed in concessions or repairs. We want to be fair in our request and only ask for items that are potential safety concerns or may cause the seller monetary damages in the future. Our contract price and how competitive the listing was can also play a part in what credits are asked for. If you think you are getting a great deal or if the seller has other strong offers in a backup position, we may decide not to ask for any credits or concessions or adjust our J-1 request accordingly.  

After we decide what items are important for you to ask for a credit, we will obtain quotes for the work that will need to be addressed. We may get quotes from a plumber, electrician, appliance repairman, roofer, handyman, and any other contractor deemed necessary. We will quantify the items we are asking for, write a request on your behalf, and provide the request and home inspection report to the listing agent to present to their seller. We typically ask for credit instead of repairs so that you can use your own contractors to do the work instead of the seller’s contractors. If an item needs immediate attention then we may ask for a repair to ensure the issue(s) do not cause immediate damage to the property. 

A seller may not accept your request outright and may come back with a counter. Once you and the seller agree to a credit or repair then we can move forward. If they decline then you as a buyer will need to decide if you would like to cancel or if you are willing to make the repairs at your own time and expense in the future.

Other J-1 Requests: 11-19 could uncover other issues that may need to be addressed and that could monetarily affect the value of a property in the eyes of a buyer. Permit issues, parking stall issues, and association document issues could all pose reasons to ask for credits or concessions.

If issues arise during the J-1 inspection period we can take that into consideration in conjunction with the findings from the professional home inspection. 

Previous, Step 19: Additional Research

Next, Step 21: Additional Deposit & Appraisal Order

Steps to Buying a Home

HAWAII STARTS HERE | JOE CASTANEDA (R)

Joe is a realtor with Better Homes and Gardens Real Estate Advantage Realty. He majored in finance and has experience as a former mortgage loan originator. He has helped buyers both with new project loans and going through the process of applying and obtaining units in new projects. He uses his finance, mortgage, and real estate knowledge to help home buyers find the right properties to fit their needs. Contact Joe by phone or email at (808) 351-8394 or JoeC@BetterHawaii.com.