Estimate is not an inspection...should this be disclosed?
Here’s a situation where the buyer of a Victorian home did not order inspections during his buyer investigation period. Rather, he got an estimate from a foundation contractor who merely did a “walk around” and provided in a brief email how much he would charge to replace the brick foundation.
An estimate is not an inspection
The buyer’s agent said in an informal request via email that the buyers would like a price reduction based on the contractor’s informal email estimate. The buyers are missing their inspection deadline and requested an extension
The sellers felt blind-sided because they were told the buyers were doing inspections on a certain date.
The sellers don’t want to grant an extension unless the foundation assessment is a full inspection. They will not negotiate based on a “walk around” estimate, and want another contractor to provide a detailed estimate and alternatives on how to address the issue of replacing a brick foundation.
What exactly is considered an inspection?
The new foundation contractor will offer a “free inspection and quote”. But does this qualify as a real inspection?
Searching on line, I found a comprehensive list of what to expect from a foundation inspection.
- Foundation analysis
- Interior and exterior observations
- Conclusions
- Recommendations
- Photo file
Estimate, but not an inspection -- should this be disclosed?
An inspection, once completed, becomes part of the disclosure package.
But should an estimate be disclosed to the next buyers if this transaction is cancelled? Is an estimate now considered material information?
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