In Santa Clara County (Silicon Valley), California, experienced Listing Agents strongly encourage the Seller pay for a full battery of "pre-sale" inspections (termite, general property, roof, chimney and swimming pool/spa, if applicable) and provide copies of those inspections in the house and online so Selling Agents and prospective Buyers can read them before an offer is tendered. That way, the Buyer knows the condition before the offer is written and there usually are no surprises that cause the "AS IS" transaction to fall apart. The full battery of inspections may cost the seller $700-$800, so the Listing Agent must explain and justify the importance of pre-sale inspections to the Seller. (I should mention that our median Single Family Residence price is ~$825,000.) Here's how I explain the importance: First, there may be conditions the Seller is not aware of, that they want to fix independent of selling the house. (Remember, a ounce of prevention is worth a pound of cure.) Second, by having the pre-inspections completed and available to interested buyers, there should be no surprises that would cause the Buyer to withdraw or “back out” of the "AS IS" transaction during their contingency period. Third, the prospective purchaser can accept the property in “AS IS” condition because s/he knows what “AS IS” means—the condition of the home is known. Fourth, we’re less likely to have to negotiate repairs after the seller has accepted an offer when the negotiating leverage can shift to, and favor, the Buyer. Remember, even though it's an "AS IS" sale and the Seller is not obligated to make any repairs, the Buyer may request repairs if needed repairs are discovered. And fifth, it allows us to negotiate the price, with the knowledge of the needed repairs. The final agreement reflects needed repairs, if any, in the final Sales Price.
The "standard" California Association of Realtors purchase contract grants the Buyer the right, within an agreed number of days, to pay for and obtain any and all inspections the buyer chooses and to withdraw their offer with no forfeiture of their earnest money deposit if they don't like the results of the inspections. However, usually the buyer does not withdraw his/her offer when they have already received and read copies of thorough pre-sale inspections.
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