Austin Texas ~ What happens after buyer completes the home inspection?

By
Real Estate Agent with Coldwell Banker United Realtors® ~ 512.750.6899
https://activerain.com/droplet/4x

InspectorLast night I got an email from my seller asking "What happens after the the buyer completes the home inspection?"

When I notified them the inspection was scheduled I explained the buyer and agent would review the inspection report and address any requested repairs on an Amendment and get it to me to present to them for review.  It dawned on my seller something was going to happen now that inspections are in process today and just wanted further clarification.  This is a very natural question to ask to further understand the process.

My reply to their question was: Remember we are in the option period and during that time the buyer needs to complete all inspections on the property. Once they have reviewed their inspection report they will discuss with their agent what repair concerns they have and request any repairs through an Amendment to the contract.  Then the buyer's agent will get the Amendment to me so I may present to  my sellers and we can review the requests.  It's what I call "negotiationinspector time."  The seller can agree to the repairs if they appear reasonable, or can agree to make some of the repairs or respectfully decline to do any repairs.

The one fact that the seller must keep in mind is the buyer has the right to terminate for any reason during the agreed upon option period per the contract.  All parties must agree to the repairs requested in writing on the Amendment.  A seller may offer a certain dollar amount to be used for closing costs for the buyer in lieu of repairs. Some buyers may elect to take this option.

There are many buyers (especially if relocating) that don't want to find vendors later and want the repairs completed.  We keep a good list of qualified vendors for a seller to use to complete repairs if they don't have their own.  The buyers may choose to re-inspect or accept the work done with paid receipts from vendors.

inspectorRepairs are negotiable.  In order for the negotiated repairs to be effective, the Amendment must be signed by all parties by midnight of the last day of the option period.  If a buyer terminates the contract it must be done on the last day of the option period by midnight or per time stated in the contract.

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Rainer
111,120
Pam Sitterly
RE/MAX VINTAGE - Magnolia, TX
CRS Magnolia-Tomball Texas

Well stated. Thanks for sharing. This is an area that can be very sensitive for sellers.

Dec 22, 2010 11:39 PM #1
Rainmaker
3,837,485
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Pam,

Yes it can be a sensitive area for sellers but the check list is long and our inspections are completed by state inspectors. There is always going to be something!!

Dec 22, 2010 11:51 PM #2
Rainer
192,298
Judith Abbott
Coldwell Banker Residential - Dallas, TX

What I try to do in a transaction is manage expectations.  I work on making sure that my buyer clients understand that the purpose of the home inspection is to tell them what they are buying.  I am not qualified to give them an opinion as to the condition of the home they are buying.  The home inspector is.  Once the buyers have that report, they can then make a decision as to whether or not they want to go forward with the purchase of the home.  I make sure they understand that the Seller is under no obligation to do any repairs, that homes in Texas are more or less being sold as-is (kindda sortta).  Then we talk about the process of negotiating repairs during the Option Period.

Where I have negotiated repairs, I have learned to have the home inspector come back out prior to closing to do a reinspection.  Just as I am not qualified to tell a buyer client about the condition of the property, I am also not qualified to tell them if a rotted sill plate has been property replaced or if the P-trap under the shower is still leaking.

Dec 23, 2010 12:27 AM #3
Rainmaker
841,108
Joshua Zargari
MJ Decorators Workshop LI staging and home decorating - Lynbrook, NY
MJ Decorators Workshop

Good morning Dorie!

Thank you for sharing this great post with us.

Dec 23, 2010 12:27 AM #4
Ambassador
2,758,551
TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

 

Good morning Dorie. Yes, this can be a time of apprehension for many. I tell folks talk to your agent. They will guide you through the process... 

 

Dec 23, 2010 02:43 AM #5
Rainer
237,354
Judy Klem
Transition Stage LLC - Shelton, CT
Home Staging, Senior Move Management, Fairfield/New Haven counties

Hi Dorie - Really good explanation of how this process works. Thanks for posting it.

Dec 23, 2010 02:54 AM #6
Ambassador
524,384
Cindy Marchant
Keller Williams Indy NE 317-290-7775 www.marchantteam.com - Carmel, IN
"Cindy in Indy" , Realtor, Fishers Real Estate

This will be a fun challenge...it was good to read about your inspection process...since I just went through one of those myself that ended in a mutual release!  This will be a great challenge for all of us...excited to post one next week while I am away (it's in my DRAFT file right now!)  lol

Merry Christmas Dorie!

Dec 23, 2010 05:15 AM #7
Rainmaker
2,315,604
Anita Clark
ColdwellBanker SSK Realtors ~ 478.960.8055 - Warner Robins, GA
Realtor - Homes for Sale in Warner Robins GA

Very good informational post Dorie...you are well on your way to completing the challenge early (wasn't this #3 so far?)

Dec 23, 2010 07:49 AM #8
Rainmaker
3,837,485
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good afternoon Judith,

That is a great term..manage expectations!!

Dec 23, 2010 10:25 AM #10
Rainmaker
3,837,485
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Goosd afternoon Joshua,

Thanks for stopping by and checking my post out!

Dec 23, 2010 10:26 AM #11
Rainmaker
3,837,485
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good afternoon Michael,

Yes that is a perfect way to put it talk to your agent! Hope your 8,000 SF inspection went well today!

Dec 23, 2010 10:27 AM #12
Rainmaker
3,837,485
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good evening Judy,

Thank you..many are just not sure how the process works.

Dec 23, 2010 10:29 AM #13
Rainmaker
3,837,485
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good evening Anita,

No it is #2. I had these questions pop up and I thought about Bob Stewarts advice and thought..that makes sense! Why not answer the question to more than one person who might have the same question!

Dec 23, 2010 10:31 AM #14
Rainmaker
3,837,485
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good afternoon Valeria,

We have not heard from the agent about the inspection and might not until Monday or Tuesday. Their option period is up late next week. With the holidays it is hard to reach everyone.

Dec 23, 2010 10:34 AM #15
Rainmaker
3,837,485
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good evening Cindy,

Thank you and I look forward to reading about yours! We just came to terms on another property inspection report. The buyer was reasonable and the seller accepted the repair requests!

Dec 23, 2010 10:37 AM #16
Ambassador
1,155,468
Craig Rutman
Helping people in transition - Cary, NC
Raleigh, Cary, Apex area Realtor

Congratulations on getting that listing Dorie. Here's wishing you and Gene a Very Merry Christmas!

Dec 24, 2010 09:19 AM #17
Rainer
4,826
David Swartz
Advantage Inspection Service - Phoenix, AZ

As Pam said, this is a sensitive area, for buyers too!

http://homeinspectorsaz.com/

Dec 24, 2010 09:52 AM #18
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Rainmaker
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Dorie Dillard CRS GRI ABR

Serving Buyers & Sellers in NW Austin Real Estate
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