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Don't Blow Your Home Inspection Deadline

By
Real Estate Agent with Coldwell Banker Realty
 

One of the things that may bite you as a homebuyer is missing a deadline set in the contract, and one of the most troublesome deadlines is the inspection contingency deadline. Most buyers don’t realize the urgency of getting everything done in time to meet that deadline, and the loss of rights that results when it’s missed.

In Pennsylvania, real estate contracts stipulate a time period for the buyer to do their “due diligence” and inform the seller of any issues that need to be addressed arising from those inspections. Just about every type of inspection is provided for in this contract clause, and the default deadline is 10 days (although the buyer can change that to any time frame – typically changed to 15 or maybe 20 days). Many times the settlement period is too short to allow many more days than 10 to be inserted here. Keep in mind that the addendum may ask for a combination of:

1) Actual repairs made to the property

2) Seller credit to the buyer at settlement ($)

3) Reduction in the purchase price

If monetary concessions are asked for, then the estimates by contractors become very important as the basis for the money in question.

Now, the buyer has to get EVERYTHING done within that 10 days – choose inspectors, schedule the visits, get the write-ups, synthesize the findings into an addendum to the contract, get that addendum into the hands of the seller. Believe me, this can make for some hectic days (especially if the contingency period covers a couple of weekends, when contractors like to take off).

My advice is to know the inspectors/contractors upfront, start thinking about what things you want looked at very early on, and plan for time to meet at the house and with your buyer agent a couple of times during the first 10 days.

Now, once the buyer has marshalled their addendum they submit it to the seller, hopefully within the 10 (or 15, etc) days. According to the contract for real estate in PA, the seller has until 5 days from the end of the time period to respond.  So if for example (in a 10 day contingency) the buyer submits his estimate on day 8, the seller still has until the 15th day to respond. But, once the seller responds to the addendum the buyer has 2 DAYS only to accept or counter the terms. Basically, things wrap up real quick and the buyer needs to know what they will and won’t accept at the end of the day…

So, inspection contingency periods are very, very important and the home buyer and agent need to be on top of it as much as possible, and plan ahead. And whatever you do, don’t blow your inspection contingency period!

If you have any questions about inspections or Lancaster PA real estate I’d be happy to answer them at jeff@yourlancasterhome.com. Visit our homepage for Lancaster PA Real Estate

 (c) 2011 Jeff Geoghan

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Comments (20)

Gerry Michaels
Glasswork Media Arts - Gettysburg, PA
GettysburgGerry Social Meida
Great info Jeff, sometimes it is hard to get buyers to understand that completion dates are not suggestions...
Mar 08, 2011 07:24 AM
Karen Feltman
Cedar Rapids/Iowa City, IA KW Legacy Group - Cedar Rapids, IA
Relocation Specialist in Cedar Rapids, Iowa

It is good to explain all of this to the buyers as you are writing the contract.  I agree that this is one of the most important contingencies and buyers need to be ready to move quickly to get everything done in their timeframe. 

Mar 08, 2011 09:06 AM
Don Barrett
Integrity Real Estate Services - Idabel, OK

Judi always go over this thoroughly with her buyers so I assume that other agents do too.. 

Home inspections being such an important part of the buyers awareness of what they are buying... they need to not miss this deadline!

Mar 08, 2011 10:02 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

I LOVE THIS. 

The Home Inspection Contingency Form we use is "self executing". 

Do the inspection and deliver the Inspection Notice by the end of day for the days in the contract and, if the seller doesn't respond within the time in the contingency, "Get ready for settlement".

You don't have to do a thing.  We've had many over the years where the listing agent was negligent.  We don't alert them (don't give them another bite at the apple), just wait until a couple of days before settlement, do the walk-through and send the bill to the Title Company to deduct from the Seller's net. 

Ain't real estate great??

Mar 08, 2011 10:24 AM
Torgie Madison
Quicksilver Real Estate Solutions, LLC - Portland, OR
Websites and Contact Management

Deadlines are important! It's funny how some people see them more as "guidelines" which can be bent... or even broken!

Mar 08, 2011 10:25 AM
Torgie Madison
Quicksilver Real Estate Solutions, LLC - Portland, OR
Websites and Contact Management

Deadlines are important! It's funny how some people see them more as "guidelines" which can be bent... or even broken!

Mar 08, 2011 10:25 AM
Maya Swamy
Funds Available - Long Beach, CA
Ph.D. Long Beach, CA - fundsavailable.com

Important reminder to agents and clients alike.

Mar 08, 2011 10:29 AM
Cory Barbee
San Diego, CA
Broker (760) 563-4022

Especially important not to blow the deadline on REO's !!

Mar 08, 2011 11:38 AM
Patricia Kennedy
RLAH@Properties - Washington, DC
Home in the Capital

Jeff, this is a contingency where we need to be as compulsive as the house nerd who did the inspection!  Great reminder.

Mar 08, 2011 12:46 PM
Howard and Susan Meyers
The Hudson Company Winnetka and North Shore - Winnetka, IL

In Illinois, buyers and sellers use attorneys in most residential real estate transactions.  Generally the attorney will keep their eye on the ball in regard to contract deadlines...however, we agents are always double checking, just in case.

Mar 08, 2011 02:30 PM
Chris Olsen
Olsen Ziegler Realty - Cleveland, OH
Broker Owner Cleveland Ohio Real Estate

Hi Jeff -- Very true, deadlines are deadlines, and it's imperative for both parties to exercise due diligence in all things contractual, as it helps to keep good faith going, which is important.

Mar 08, 2011 02:53 PM
Lizette Fitzpatrick
Lizette Realty - Richmond KY - Lexington, KY
Lizette Realty, Lexington KY MLS - Kentucky Homes

Time IS money! I'm always mindful of the time even if the listing agent is not. It may be that one mistake that can be used to get out of a contract.

Mar 08, 2011 03:59 PM
Evelyn Kennedy
Alain Pinel Realtors - Alameda, CA
Alameda, Real Estate, Alameda, CA

Jeff:

As soon as the escrow is opened, I provide my buyers with a list of inspectors I recommend.  The challenge is to get an appointment for inspection as soon as possible.  When escrow is opened I also provide my clients with a time-line of contingencies and other matters called for in the contract.  That way everybody know when we have to act to meet deadlines in the contract.

Mar 08, 2011 05:04 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Good post and good advice for buyers. The agent should make sure the buyer understands the contingency.

Mar 08, 2011 10:23 PM
Petra Norris
Lakeland Real Estate Group, Inc. - Lakeland, FL
Realtor, Lakeland FL Homes for Sale

Jeff - it is certainly the buyer's agent to advice the buyers of timelines in all aspect of the real estate contract.

Time is of the essence!

Great post and video :)

Mar 09, 2011 12:14 AM
Marcus Valdez
Berkshire Hathaway Rocky Mountain Realtors - Fort Collins, CO

Your youtube videos are really great.  Thanks for the work you do. I think is most markets we all have to be careful about getting the inspection done quickly.  In Colorado we get to pick when the inspection deadline is but it is very time sensitive.  

Mar 09, 2011 03:03 AM
Mike Mayer
Mike Mayer, Broker/Owner - i List For Less Realty, LLC - Lafayette, LA

The purchase contract is filled with dates that require the focus and attention by all parties. Well-done and informative post topic and video, Jeff!

Mar 09, 2011 03:57 AM
Jeff R. Geoghan
Coldwell Banker Realty - Lancaster, PA
REALTOR, Marketing Manager

Thanks for the great comments everybody!  

Mar 09, 2011 04:43 AM
Jan Stevens
Coldwell Banker Pittsburgh - Cranberry Township, PA

Good advice from a fellow Pennsylvanian. Had this happen once and it was very painful.

Mar 09, 2011 05:19 AM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Jeff - This is a great reminder of how important it is to keep to the inspection deadline.  Getting those done timely just makes sense.

Mar 09, 2011 03:06 PM