Solutions for Addressing Significant Inspection Items!

In today’s real estate market, it’s more important than ever for both buyers and sellers to understand how to handle significant inspection items discovered during the transaction process. Issues like unsafe/defective electrical systems/panel, sewer line failures and/or improperly vented gas appliances, etc. can derail a transaction if not handled thoughtfully, but with the right approach, these challenges can be resolved efficiently and safely.

Understanding the Scope of Inspection Issues

Some of the most common significant findings include:

·       Knob and tube wiring in older homes, which may trigger lender safety concerns and require a professional electrical inspection and/or modification.

·       1970s-era aluminum wiring that hasn’t been updated, often requiring repair and/or modification by a licensed electrician.

·       Older sewer line deterioration, leaks or offsets, typically revealed during a sewer scope inspection, that need repair, liner or replacement.

·       Improperly vented gas water heaters or furnaces, such as units vented into an attic rather than through the roof.

Each of these items poses potential safety or functionality issues that can impact financing, insurability and/or habitability.

Next Steps: Additional Inspections and Bids

When significant issues are discovered, the Form 35R (Inspection Response Form) allows buyers to request Additional Inspections. This provides extra time to bring in specialized licensed and bonded contractors to evaluate the problem/s and produce a scope of work with accurate bids for repairs.

This step is critical, it allows all parties to make informed decisions based on real costs, not assumptions. Once bids are obtained, the buyer/buyer broker  can submit a Form 35C (Inspection Report/Bid Seller Consent Form) to the seller/listing broker for intials on what exactly they are allowing the buyer to send over for their review. Many times the seller will only want to see contractor proposals outlining the specific issues, scope of work and associated costs. Once consent is received, the appropriate information can be provided to the listing broker/seller.

Negotiating Repairs or Credits

The sellers now have an opportunity to review the bids, etc. and determine how to proceed. In many cases, it’s in the seller’s best interest to address the health & safety issues and significant sewer or structural issues prior to closing. Not only does this satisfy the current buyer, but it also ensures that future buyers won’t be deterred by the same issues if the transaction were to fall through.

As an experienced Realtor, I generally help sellers connect with licensed, bonded contractors willing to complete work with payment to be paid out of seller proceeds at closing. This can significantly reduce the upfront financial burden on sellers, especially helpful in estate sales where heirs may be handling deferred maintenance from years of ownership.

Funding Solutions Prior to Listing: The Windermere Ready Program

One of the most effective tools available to sellers is the Windermere Ready Program, which provides quick access to up to $100,000 in equity funds to prepare a property for market. With minimal paperwork and funds available in as little as ten days, it’s an excellent solution for sellers who want to invest in repairs, staging, landscaping or other improvements that will help the home sell faster and for more money.

These funds are repaid at closing directly from seller proceeds, making it a smart and accessible way to handle needed updates without upfront out-of-pocket expense. Sellers who leverage this program often see a significant return on investment, even from relatively simple improvements such as fresh paint, flooring and/or cleaning and yard work.

The Takeaway

Significant inspection items don’t have to derail a transaction, in fact, when handled correctly, they can strengthen trust between parties and lead to a smoother closing. With professional guidance, transparent communication and creative solutions like contractor payments paid out of closing or the Windermere Ready program, both buyers and sellers can navigate these challenges confidently and successfully.

The key is proactive collaboration. For buyer and listing brokers, helping clients understand their options early can make all the difference. For sellers, addressing known issues before listing can dramatically increase buyer confidence and market value.

In Western Washington’s evolving market, preparation and expertise remain the cornerstones of a successful sale.

King County Market Update | November 2, 2025

By Kat Howard | Real Estate Insights

The King County housing market is showing renewed energy this October, helped along by a welcome dip in mortgage rates. Over the past several weeks, the number of homes going under contract has consistently outpaced new listings and demand continues at a fairly steady pace. Inventory levels have finally begun to decrease over the past month, which is consistent with normal real estate trends.

Inventory & Market Activity

Last week, 143 new listings came on the market, while an impressive 280 homes went pending, nearly double the pace of new supply. With just 1.9 months of inventory, the market still favors sellers, though buyers are finding more breathing room than during the intense winter/ early spring cycle.

Market supply (MSI) has increased 36% year over year, and the number of resale homes available is up 32%. Meanwhile, the total number of closings fell 14% from last October.

When it comes to showings, homes that went pending required an average of 16 showings, with a median of 12. But overall, the average listing in King County was shown just 6.6 times this month, proof that being fully prepared and competitively priced when you hit the market is absolutely essential.

How Fast Are Homes Selling?

Momentum has picked up compared to summer. Properly priced, well-presented homes are moving a little better:

·       34% of homes listed between Oct 19–25 went under contract within 7 days.

·       37% of homes listed between Oct 5–18 sold within 14 days.

While the median days on market sits at 15, the average has stretched to 36, reflecting slower movement for overpriced or underprepared properties.

Contract Trends

The fall market has brought somewhat more balanced negotiations. Of the contracts accepted between Oct 26–Nov 1:

·       27% received multiple offers

·       50% included an inspection contingency

·       71% carried a financing contingency

This points to heading towards a more traditional, healthy market, one where buyers and sellers are both active participants, not just spectators in a bidding war.

Sales Outcomes

Only 25% of homes sold above list price over the past 30 days. Here’s how that breaks down:

·       11% sold for 3%+ over list price

·       8% exceeded list by 5%+

·       4% hit 10%+ over list price

Still, 53% of homes sold below asking, a strong reminder that pricing and presentation remain the two most powerful levers in today’s market. Twelve percent (of the total homes sold) sold for 5% or more below list, and 3% went for 10% or more below.

Buyers are savvy, well-informed, and unwilling to chase overpriced listings.

The Bottom Line

Interest rates have dropped nearly three-quarters of a percent since late August, sparking fresh buyer interest. The Fed’s signals of additional rate cuts have kept some buyer optimism alive, though the recent government shutdown has added some more recent uncertainty.

Since late September, the number of pending homes has far outpaced new listings, a promising (and seasonal) sign of renewed fall activity. But with inventory up 32% year over year and sales down 14%, we may not see the typical “winter/early spring surge” this February through April.

Expect continued multiple offers on the best-prepared, best-priced listings, and a pool of leftover summer/fall inventory still ripe for negotiation come January.

The Takeaway

Sellers: Homes that are priced right and presented beautifully still capture strong early offers.

Buyers: Opportunity abounds, with less competition and room for meaningful negotiation.

The King County market has shifted from summer slowdown to autumn opportunity, and those who read the market, not just the headlines, are the ones winning this season.

— Kat Howard

As always, thank you for taking the time to read this version of Stats by Kat. Please feel free to reach out. I value your questions and comments! And don’t forget to follow me on Social Media (links are below), as the most up to date information on our real estate market will also be covered in my most recent videos. And check out a variety of playlists on my YouTube Channel.

Tips for Sellers & Buyers

Since I’ve started creating content in 2023, I’ve put together several hundred videos to help Buyers and Sellers navigate our local real estate market. Here are a couple of the more popular Playlists:

Real Estate Tips for Sellers

Real Estate Tips for Buyers

Katherine Howard | Broker
Windermere Real Estate/HLC
13901 NE 175th Street | Suite 100
Woodinville, WA 98072

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