Home inspections are an important component of the purchasing process. The purpose of the home inspection is to provide the buyers with a clear and current professional opinion about the homes condition.The home inspector’s job is to identify anything/everything that is or could be an issue. This, however, doesn’t give the buyers the right to ask for everything on the list to be repaired.
The Offer-to-Purchase and Contract has a section that covers the Home Inspection Contingency in great detail. This section identifies those items a buyer can ask to be repaired. All of the major components of the house are covered i.e. plumbing, electrical, roof, foundation, structure, appliances, etc.
It is important to realize that when the seller signs the “Offer”, the sellers(s) have already agreed that all covered items “shall be performing the function for which intended and shall not be in need of immediate repair”.
The above is an important point. The “Repair Request” notifies the seller which of the covered components need attention. All too often we Realtors approach this as a negotiation. It is not! That’s why the buyer can walk from the contract without penalty if the seller DOES NOT agree to fulfill his/her obligation under the terms of the contract.
A word of caution to home sellers. If there is a problem that is identified in the home inspection and you refuse to repair or replace the covered item it becomes a “material fact”. Your Listing Agent is “REQUIRED” to disclose (inform) the issue to all potential buyers.
For buyers. You must limit your “Repair Request” to items covered by the Home Inspection section of the contract. Items NOT covered are paint, carpets, outdated fixtures, appliances just because they are old or worn.
Remember that a 20 year old heat & air system that is working properly IS “Performing the function for which intended”.
If you have any “Inspection” questions or stories feel free to comment. I will answer your questions.
David C Recker, Associate Broker, Realtor ® licensed in North Carolina. Reach David at: 252-442-2687
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Copyright © 2009 By David C Recker, M3 Real Estate Guy. All Rights Reserved. *When Home Inspections Find Problems*
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2 comments:
David,
Often the issue becomes one of, not so much functioning as intended, but remaining life. While I personally never mention remaining life (as I don't own a crystal ball) the reality of a manufacturer's servicable life often rears its ugly head. If a heating system is 50 years old, and is in marginal or poor condition, but is functioning, it may still be considered a material defect.
And, in this Buyer's market, the inspection report is often used as a negotiating tool. Face it, if there are 30 defects (even minor ones) the Buyer is going to wonder if they should pass on this house and go to the next. Often, Buyers ask for LOTS of things to be repaired, whether material or minor in nature.
Joe - I agree that often it becomes a second negotiation. However, using your example, if the 50 year old heater is working and heating properly than why should the seller buy a new one?
The buyer can always use the inspection report to walk away if items are found. But, this doesn’t always mean the seller needs to repair items that aren’t in need of repair.
I look at it this way. If the seller really wants to sell, and the buyer really wants to buy…then we will find an agreement. But if the buyer wants a 50 year old house to be like a new home…well, they should probably should look at new homes.
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