The Home Inspection: What Are you Really Getting?
When you buy a home (whether new or existing), it is always recommended to perform "buyers' due diligence" by commissioning all the necessary inspections (including home, termite, moisture, mold, structural, etc.).
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Always choose licensed, insured and experienced professionals to perform these duties (after all, if you ask your buddy Joe - who has a contractor's license - to do your home inspection and he misses an important issue - it can cost your friendship, and it may also cost you a lot of money in the future!).
After financing, inspections and repair negotiations are some of the most common causes for contracts to fall through! Once you get all their inspections done (within the time limitations stipulated in the contract), you should sit down with your REALTOR and analyze:
- What are the main concerns/issues?
- Are these issues serious enough to cancel the agreement? or
- Can they be fixed? And how much will it cost to fix them?
- Would you prefer the seller to fix these issues? Or would you rather have the seller give you an extra concession and you do the repairs?
If you decide to proceed, your REALTOR will help you write a "Repair Addendum" to ask the Sellers to fix these issues. Many Buyers believe that Sellers have to fix everything. This is not the case, generally Sellers only have to fix leaks in the roof, structural or safety issues (i.e. electrical). Everything else is a "wish list" and subject to negotiation.
If the parties don't come to an agreement on the repairs to be performed by the Sellers prior to closing (or adequate compensation to the Buyers instead of doing these repairs), in most cases the contract will get released and the Buyers will get their Earnest Money back. This can be a frustrating experience for all parties, especially for Sellers who have had their home on the market for a while and were finally thrilled to be able to move on with their lives. The Buyers will also lose the fees they paid for the inspections, and experience the frustration of going back to square one.
If the Sellers cannot or do not want to fix any issues and you still want to buy the home, make sure that your offer includes the home to be sold in "as-is" condition and that the offer price reflects this.
Experience counts! Call us today on (843) 900-0155 to help you with your next real estate purchase!
Please contact us if you have any questions or comments.