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 firstname.lastname@example.org to help because Wanda Can!