Inspector points out the same defects in a home shown in an offer.

When you consider all the things that could go wrong in Real Estate, this is one of them that should not occur, but it does.   Once again, it concerns inspections, but this problem begins with writing the contract. 

When we write a contract, it is advisable to list all major defects in writing.  In other words, list them on the offer to purchase if they are not listed on the Condition Report supplied by the Seller.  In this instance defects were disclosed on the Condition Report and I discussed the list price, market value, and defects with the Buyer, who decided to estimate the costs himself and deduct them from the list price.  The offer was accepted by the Seller. 

The Buyer of course had the home inspected.  The Inspector found the same obvious defects, listing them on the report which he provided for the Buyer.   The Buyer thought he was going to pull a fast one by asking the Seller to deduct the price of the defects from the contract price.  In other words, the Buyer wanted the Seller to credit the price of the defects a second time.  Of course I had to point out the fact the Buyer already used the same defects on the Condition Report to reduce the sale price and he had little chance of succeeding.  At the instruction of the Buyer we provided a list of defects on an Amendment, sending it to the Seller for their signature.  Of course the Agent for the Seller reviewed the Condition Report, compared the list of defects from the Inspection to those listed on the Amendment and original offer to find the Buyer and Seller agreed these defects existed and the Buyer was aware of them before signing the Offer to Purchase. 

The lesson here is, make sure you know the price you want to pay before signing a contract.   Know the market.  Have an idea of the cost of repairs and check with a licensed professional before making a final decision.  When a defect is listed on a Seller's Condition Report, and the Buyer is aware of the defects before the Inspection, there is little chance of using an Inspection Report to further reduce the price or void the contract.  It would all depend on how the defects were disclosed and what they actually were.  The contract warns that an Inspection must reveal defects which substantially effect the value of the property. 

In this case the Buyer was satisfied with the purchase price and was confident the defects were not a major concern based on the sale price and market value.   Everything went fine and the deal closed on time.