Is A Request For Repairs a Counter-Offer???

Hi Lenn, we saw Pam's post and it was right on the mark!

Lenn love the spirited comments! here in California although we have "as is" in the Purchase Agreement/Escrow Instruction, the reality is it is an opportunity for both parties to revisit the True Value of the Property. Buyers make decisions  on what purchase price they are willing to buy a property based on a number of variables that are known such as : 1. comparable, 2.type of market (fast,slow, buyer's or seller's)  and 3. then what they think is a reasonable condition of the home. After the inspection "they discover" what we call "unknown or unexpected defects" at that point it becomes decision time: 1. buy as is or 2. walk away from the sale....hence savvy buyers,sellers and Realtors do not want option 2 since there might be a middle ground where everyone walks away with a "win-win" scenario. So to answer your post "per se" it is not a Counter Offer but it is sure a critical junction in the Transaction.

Based on what Alan (Cook County) and Lyn Sims (DuPage County) wrote, I just clarified with a Kane County attorney what I believe to be true. 

The first five days is called attorney review and the first 10 days are for home inspection and final contract acceptance. During attorney review either side can cancel the contract for any reason. For example, a seller could cancel the contract if the buyer asks for an extension to get the inspection(s) done. Then, if the buyer asks for "anything" during the home inspection time - a repair, an extension, a glass of water -- that wasn't in the initial contract then the seller can say no and cancel the contract. Seems like we all agree up to that point. But what's interesting is the interpretation of whether the home inspection is a renegotiation with offers and counter-offers. None of the attorneys in my area use the phrase "this is not a counter-offer" in their buyer repair-request letter.

Lyn is about 20 miles from me and Alan is about 45. So it's not even just the state law, it's local practice. 

I am not sure what Pam's post was trying to reveal except that a "re"negotiation after a home inspection can cause you to lose out....Which is true for both parties. Asking for major items to be repaired isn't necessarily a renegotiation tactic, some items may be a deal breaker for the buyer and some may be items that were unexpected when making the initial offer.  I am in MA and thought as you do, that the buyer is the one with the option to back out during the inspection period if the seller doesn't want to make any repairs, etc. We do have two contracts. The initial "contract to purchase" (many call it the offer) and then, typically after a 10 day home inspection period, the P&S is entered into in which the attorney's can review and amend.

@ Leslie (#55) yep, very regional... it's all dependent, not on the law, but on the interpretation of that law by local District Courts.  And clearly DuPage, Kane and Cook aren't in lockstep.

In California all properties are assumed to be "as-is". Of course there are requests made anyway....but it's a contingency for the buyer, not a counter offer to the seller. Sometimes things do escalate into a deal breaker, but I always find it annoying when a buyer asks for a large discount from my seller for something they could clearly see before they write the offer.....such as a cracked driveway.

I must agree that my interpretation is spot on with your Lenn.  It is important to know when you accept an offer (or have yours accepted) what the intent of the home inspection is.  I tell people it is like buying a used car, the seller priced it for the condition is in and you can't expect them to rotate the tires, change the oil, fix the rock chip in the window and replace the burned out tail light at the price they offered it at.  However, if you test drive it to the mechanic to learn it has a transmission issue or that the is more than meets the eye, maybe there is a case to renegotiate or walk away.

Well Lenn, it may not be renegotiating the offer, but if it is not then the original offer was a poor offer with a grey area (the inspectors report) that is large enough to drive a truck through.

Hi Lenn.  In California the Home Inpsection is a contingency, not a counter offer.  However at times, some agents try to renegotiated the agreed upon salesprice based on the outcome of the home inspection. It's  not right, but they try and sometimes get away with it.

It's been several years now since I let my license go, so this may have changed... In Idaho the section of the purchase and sale regarding inspection and repairs had a space to fill in the amount the seller would agree to pay for any such repairs. If the need exceeded that amount, it was back to negotiations.

If the sales agreement contains an inspection clause that provides the buyer an easy out over reported, needed repairs (as all in my state do), then the only thing that has been negotiated up front - in effect - is a contract for a contract.

Both agents should be making this reality perfectly clear to their respective clients at the time the original agreement is being negotiated.

You have a better understanding of the process.  My contracts here in FL specifically state there is a home inspection contingency.  We have an "AS-IS" contract for the situation where you can inspect all you want but it will not change the contract.

Your post was re-blogged and it's still timely as when written in July.  The Sales Agreement (contracts) used in my area outline that repairs can be negotiatied, or not.  Buyers can revoke their offer if said repair negotiations can't come to terms.  But they have a window within the inspection contingency.  I've only met one listing agent in my market that thought it was a re-negotiation of the offer. It's not, according to the language.