After a home has an accepted offer, there are two main contingencies that have to be worked through before the transaction firms up. Unless it’s a cash transaction, the Buyer needs a commitment from the loan underwriter approving their loan. And almost always, home inspections need to be completed with the condition of the home at time of closing to be agreed upon between both Buyer and Seller. The main reason inspections are done is for disclosure, so the Buyer understands the condition of the home before final closing occurs, not afterwards when it’s too late, which makes for problems and hard feelings. So I’m glad this step is in there for both the Buyer and Seller. No surprises and everyone should be happy.
The Purchase Agreement typically calls for a week or two after being accepted for the Buyer to complete inspections of the condition of the home and respond back to the Seller. The Buyer hires a knowledgeable, experienced Home Inspector to look it over. The inspection notes all the things that are in good conditon and reveals any items that might need some repairs. The Buyer has the option of asking the Seller to repair or address these items prior to final closing. Sometimes there is a HUGE list of things. If the inspection report reveals some MAJOR defects and the Seller is unwilling to repair these, the Buyer can ask to be let out of the contract.You never know for sure though what’s going to happen until you step through it. One Buyer might react differently than another would to the same report from the Inspector. And each Seller responds differently than another might when asked to address the same list of things. It’s always interesting to see what will happen.
Because it’s unpredictable and a potential problem, I used to worry about inspections when I first started in the business. Now, I realize it’s an important part of the transaction so there is no trouble for either the Buyer or Seller…or for me too. I just present the facts and try to explain to my client, either the Buyer or the Seller, what their options might be. If a Buyer really wants the home and the Seller really wants to sell, they usually find common ground and an agreement is reached. I’m happy if they are.
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