Our current competitive market often prompts shorter timelines and aggressive contract terms. Whether you are a buyer or seller, don’t take shortcuts where inspections are concerned.
Sellers
Some are agreeable to performing inspections in advance, and others leave that to the buyer’s discretion. Yes, it’s an additional cost for the seller, and buyers may order inspections of their own just the same. However, it may stave off surprises later. Major unexpected repairs could send a buyer running, or show that the list price is not realistic. This falls into the “It is what is is” category.
Buyers
Buyers will often write an As-Is offer to compete. To be clear, in California all transactions are considered as-is, per #11 of the California Residential Purchase Agreement (RPA CA 11/14). Buyers are making an offer based on the present physical condition of the property, as they see it. Inspections are a buyer’s opportunity to check things they cannot see and determine the true cost of owning the property.
In a balanced market, it’s common to see buyers request that sellers make repairs to items found to be faulty, unsafe or not to code. It’s always the seller’s prerogative to agree or not. In order to stand out among a bevvy of other buyers, a party may strengthen their position by restating that condition i.e., “Buyers accept the property in its physical As-Is condition.”
This does not imply that buyers should forego inspections – it’s even more important when drawing that hard line. If you are not expecting the seller to make any repairs, at least understand the risks. Contracts have a contingency period for property investigation – you may shorten it to make your offer attractive but it’s not wise to forego it.
Age and condition of the home can certainly influence what inspections should be ordered, but if none have been provided by the seller in advance, I recommend at least a pest inspection, property inspection and roof inspection (pool or spa if there is one). With that information in hand, it will be apparent if others are needed.
Instead of looking at inspections an increase of costs to a buyer, or a decrease in profits to a seller, consider them a sound investment in the desired outcome of your real estate transaction. Read more about inspection types.
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