A home inspection is not necessarily a repair list.

By
Real Estate Agent with Red Rock Real Estate UT DRE# 6541633-SA00

A home inspection is not necessarily a repair list. 


Homeowner accepts an offer close to $5,000 less than appraised value. Home inspection shows a few minor repairs and buyer asks that seller agree to fix all listed items.

 

Seller refuses, knowing buyer is getting $5,000 in equity based on the true value of the property. Due diligence deadline is looming and buyer agent says his client may walk now.

 

If the buyer cancels the contract, seller can accept another offer closer to the appraised value and buyer simply moves on to another property. Gone is their money for home inspection and appraisal cost.

 

Unless a defect affects the structural integrity or true functionality of the home, some sellers may not agree to repairs, especially in a brisk market, where listed homes are selling quickly at offered price or above.

 

Most likely, multiple back up offers are considered and taking a NEXT! approach is to be expected. The REPC also states that the home is accepted As Is and once paperwork is signed, the buyer also agrees.

 

However, sellers, once under contract, may wish to proceed forward. In that case, there are options regarding repairs:

  • A credit can be issued from the seller to the buyer at closing
  • The purchase price of the home is reduced to accommodate cost of repairs
  • Repair Addendum submitted for completed repairs done by seller prior to close
  • Obtaining bids by licensed professionals for work to be completed after closing and money placed in escrow account
  • Or forgoing asking for any repairs

 

This will come up once the resale home search begins for buyer clients. We can only represent to the highest if we educate them on the process and set the expectation up front, avoiding unecessary setbacks.

 

A home inspection is the way to go in all residential sales but keep in mind that resales are offered As Is for a reason. They simply cannot be compared to new home construction standards, so they are As Is - It Is. 

 

Take it or leave it or love it and buy it!

 

..................................................................

 

Buying or selling a home in southern Utah? Call me at 435.632.9374 or contact me at wanda@buynsellutah.com to help because Wanda Can! 

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Looking for an experienced real estate professional in southern Utah? Click here.

 

To discover sunny southern Utah for yourself, go to: www.buynsellutah.com

 

Wanda Kubat-Nerdin REALTOR Southern Utah www.buynsellutah.com

 

 

Member of the St. George Area Chamber of Commerce

I, Wanda Kubat-Nerdin at PK Real Estate Utah am responsible for my opinions expressed in this blog. Information herein is deemed to be reliable but not guaranteed and may change due to market conditions. Please do not take my pictures or artwork and use them as your own, they are my property,  Copyright ©

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Topic:
Home Buying
Location:
Utah Washington County St. George
Groups:
Agents who want REFERRALS!
Selling Soulfully
Diary of a Realtor
Hyper-Local
HyperLocal Neighborhood and Community Posts
Tags:
advice for home buyers
due diligence deadlines
southern utah residential sales
structural integrity and true functionality
home inspections are not necessarily a repair list
the four corners of a real estate purchase contract
as is in real estate

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Rainmaker
3,351,936
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Wanda,   YOu come up with great knowledge on this subject.  I seen some inspection objection that they wanted fix like 46  items, one was a loose screw.

 

Feb 24, 2020 09:37 AM #1
Ambassador
2,288,438
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

Getting carried away with a repair list may not net the requested results and can be disappointing to buyers if they are not educated regarding the process. Thanks for offering a comment Will Hamm, always appreciated!

Feb 24, 2020 10:32 AM #2
Rainmaker
1,430,804
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

This situation is usually the fault of the buyers agent. If they do not explain the inspections and what is reasonable, it can blow up on both the buyer and seller.

Feb 24, 2020 01:27 PM #3
Rainmaker
3,376,242
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Good morning, Wanda... one thing I discuss upfront with my buyers is that a home inspections purpose is NOT to give them a "like new" home.

Feb 25, 2020 03:42 AM #4
Rainmaker
3,555,246
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Wanda - the concept of realistic expertation is an important one in real estate.  For buyers and sellers.  

Feb 25, 2020 03:50 AM #5
Rainmaker
3,819,603
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Wanda. This is terrific, smart and thought provoking. Get "real."

Feb 25, 2020 07:00 AM #6
Rainmaker
2,826,391
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

It’s not a repair list it’s good to always know where you stand if you should need to have anything done.

Feb 25, 2020 11:44 PM #7
Ambassador
2,288,438
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

Sooner than later is the key Jeffrey DiMuria 321.223.6253 Waves Realty. Some deals have failed over $200 in requested repairs!

Feb 26, 2020 10:20 AM #8
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Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

Fantastic advice Nina Hollander! Unrealistic expectations do not bode well.

Feb 26, 2020 10:21 AM #9
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Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

Which is why we are so very important in transactions Michael Jacobs - people first!

Feb 26, 2020 10:23 AM #10
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Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

Thank you so much Sheila Anderson, yes, let's get real! Spring is just around the corner and just what is needed - growing season!

Feb 26, 2020 10:33 AM #11
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Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

Disclosure helps to move a transaction forward Laura Cerrano and hopefully sellers and buyers can work it out. If not, NEXT!

Feb 26, 2020 10:34 AM #12
Rainmaker
2,147,595
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Wanda Kubat-Nerdin - Wanda Can! - What a terrific and an eye-opening post!

I really, truly hope it gets a FEATURE on AR because it is feature worthy!!!

Feb 26, 2020 07:55 PM #13
Rainmaker
2,682,974
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

You make an excellent point about home inspections, Wanda.  Too often home buyers see them as an opportunity to turn them into a Christmas Wish List.

Feb 27, 2020 02:45 AM #14
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