Short answer
Yes. A failed inspection does not stop a sale. The buyer may ask for repairs, a credit or a lower price, or cancel if the contract allows. Once an inspection reveals a problem, you know about it, so disclose it to later buyers. Your options include fixing it, renegotiating, relisting as-is or selling as-is for cash.
What the inspection does
Pennsylvania's Home Inspection Law covers the inspection provision in agreements of transfer. It generally calls for the inspection to be done by a full member in good standing of a national home inspection association, or by a licensed engineer or architect. The report lists problems. Your contract decides what the buyer can do with it: ask for repairs, ask for a credit, renegotiate or cancel within the allowed period.
Read your contract's inspection clause before you answer the buyer.
Your options
You can agree to repair, with receipts. You can offer a credit or a price reduction. You can refuse and let the buyer decide. You can ask for a second opinion on a big item, such as a structural or roof concern. Or you can end the deal if the contract allows and relist.
Compare each against the next offer you realistically expect. A buyer who found real problems is a buyer whose view is likely shared by the next one.
Ask for the repair request in writing, with the inspector's report attached. Vague requests are hard to answer and easy to dispute.
Disclosure to the next buyer
Once you have the report, you know what is in it. Pennsylvania's Seller Disclosure Law requires disclosure of known material defects, and says a seller can amend a disclosure in writing before the agreement is signed. It also says that if information already disclosed later becomes inaccurate before settlement, the seller must tell the buyer.
Plan to share the report or the issues it raised with later buyers. Hiding a known problem after a failed inspection is the sort of fact pattern that leads to damage claims. A claim must be brought within two years after final settlement.
When to consider a different buyer
If the repair list is long or a lender will not finance the house, a buyer with cash and a tolerance for repairs may be a better fit. They will price in the work. A relisting after a failed inspection can also carry days-on-market costs while you carry the house.
Pick a path based on net proceeds and your timeline. A listing at an adjusted price with a repair credit may net more than a cash offer, or less. Compare.
A relisting also resets how buyers see the house. If the earlier deal fell through, agents may ask why, so be ready with an honest, short answer.
Where Kaizen fits
Kaizen Home Buyers buys as-is, with no repairs from you, and makes a cash offer within 24 hours. There is no agent commission. We typically close in 14 to 30 days or on your date. Call 267-329-0084 and tell us what the inspection found.