Many Buyers forget that the price is not the only or the last negotiation point in a real estate purchase. There are a number of contingencies and processes that happen before closing, and one that frequently causes deals to evaporate is the inspection and repair negotiation process.
Buyer Sales Contracts can be:
· AS/IS Sales Contracts with the Right to Inspect
· Regular Sales Contracts with Repair Limits built into the contract.
So please understand how your sales contract is being written up.
Inspections in a real estate deal encompass many property aspects.
All items must be inspected by a State Licensed Inspector in any of the below items:
Roof
Mechanical equipment
HVAC / Heating / Air Conditioning
Plumbing / Water Heater
Electrical
All Appliances
WDO (Wood Destroying Organisms)
Pest / Insects / Rodent Infestations
Wells & water quality
Septic systems
Mold & other Environmental Hazards
Any other licensed inspections desired
After we are under contract, I will provide a list of our licensed home inspectors that you may utilize. Otherwise, you can choose someone else who licensed in the state as a Home Inspector.
While your house purchase may not require all these inspections listed above, most can be provided by a single inspector. You will want to check with a homeowners insurance company ASAP to see if they need 4-point or wind mitigation inspection report. It is cheaper to get it done at the same time as the other inspections.
It is extremely important to pay attention to the dates listed on the sales contract to complete all inspections. If you do not complete all repairs before the deadline, your right to more inspections is gone.
We maintain an extensive vendor list to yield just the right contractor for the repairs if the Seller needs vendors to get the repairs done.
As the Buyer you have opportunity do reinspect to follow-up on any repair items that were listed on the summary report. You can schedule this several days in advance of the closing date. Please let us know if you want to do reinspection.
Also, before closing, we will do a walk-through of the home. You can do the walk through, or you can provide a representative to do it for you. The Agent cannot do the walk through for you. We normally schedule the walk through immediately before the closing or the day before the closing.
AS/IS Sales Contracts
The Buyer can do any type of inspections desired during the Inspection Period.
Before the Inspection Period Deadline, Buyer must state in writing that they want to proceed or no they do not want to proceed. Not responding on time means you will proceed ahead with the deal. We will with your permission present in writing to the Seller’s Agent on or before the deadline to continue with the deal or not.
No repairs should be a part of this Yes Continue or No Do Not Continue discussion. It is the Buyer’s responsibilities to make sure this deadline is met.
Regular Sales Contracts
The repair amount that the Sellers will be required to PAY UP TO will be negotiated within the sales contract. Sellers only have to repair any items that are on the Inspection Summary report that are items that are not functioning correctly. Cosmetic items are not part of the repairs. Any cosmetic repair items must be stated in the Sales Contract when doing the negotiations.
If the Sales Contract is a Regular Contract (Not AS/IS), the Buyer is responsible for identification of the items you want repaired. Once an inspection is completed, there can be issues uncovered that you were not expecting. The Inspector will provide a list of all issues that were identified. As a Buyer you have the option to request all summary inspection report items be addressed by the Seller. Or, you can request only certain ones on the summary inspection report be addressed by the Seller. The repairs request list must be given to the Seller’s Agent by the contract inspection deadline. It is the Buyer’s responsibility to make sure this deadline is met.
