Inspections. Do they make it too easy for buyers to walk?

The positive momentum was going great for on of my recent sales. Listed and pending in 10 days, plus the cash buyer wanted to close in 10 days. I jokingly dubbed it the perfect "10," a well priced property, a motivated seller, and a motivated buyer.

The buyer didn't want to move twice, and since she'd sold her house, she needed to move quickly. My seller, a former HOA director, rushed the resale certificate and canceled her Thanksgiving travel plans to expedite the transaction.

The contract stated the interior was sold "as is." The 1978 condo is in good condition, but it's dated. Since it's a condo development, the HOA pays for all exterior repairs and maintenance. That's why I wasn't worried about the inspection.

It turns out, I should have been. The buyer's agent called me after the inspection, "nothing major, just a lot of little things." It was the day before Thanksgiving, and she mentioned that she would send paperwork on Friday morning, because of the holiday.

Inspections can make it easy for a buyer to walk - if they abuse the intention.

True to her word, she called on Friday morning. After some obligatory niceties about Thanksgiving, she dropped the bombshell. "My buyer feels there are too many big issues and she has changed her mind." I pressed for more details. A skylight is leaking and there's dry rot on the deck - all the posts will need to be replaced.

Naturally, I explained that any exterior issues would have to be repaired by the HOA. I encouraged her to send me the items of concern to submit to my seller (and the HOA). She said she'd discuss it with her buyer.

Later that day, I got the inspection notice and a form withdrawing the offer. They buyer didn't give the seller a chance to address any of the repairs. Further, she did not submit any of the items of concern.

Buyers who use inspections as a reason to walk.

My seller, concerned about the repairs the buyer's agent shared with us, notified her HOA of the so-called leak in the skylight and rotting deck posts. Their maintenance supervisor, and an outside contractor, both inspected the skylights, and the deck posts - they didn't find a problem.

It's my opinion, the subjective nature of inspections leave the door open for buyers to walk away from a contract - and get their earnest money returned. In this case, the inspection process was abused. The buyer simply changed her mind and will not be penalized.

When a buyer chooses to bail on a contract due to an inspection, the seller should (at the very least) get a copy of the report. Further, perhaps it's time to tighten up the language in the response document. When buyers simply change their mind, the penalty should be the loss of earnest money. 

 

 

 

 

 I hope you like what you've read. If so, please hit the subscribe button.

Debb Janes EcoBroker&Realtor®~Sells with Soul

The Carl Group, Serving Clark County, WA
Specializing in Vancouver - Camas - Washougal - Fisher's Landing    

you can always find me at ExploringClarkCounty.com

As an EcoBroker, I combine my love of nature, people and the planet with my job as a Realtor®, that way, I can help you live in a more beautiful, comfortable and healthier environment, and save you money. Let me be your guide.

In addition, my passion for the Northwest lifestyle and our area's many neighborhoods ensure you a great selling or buying experience.

 

 Let's also connect here...