Table of Content
- Colorado’s Top Rated Inspection Company:
- What is a home inspection contingency clause?
- How to Handle an Inspection Objection
- Questions sellers should ask themselves (and their agent) after the home inspection
- Pest Inspection
- Scary Issues in Escrow
- Top Tips for Avoiding Real Estate Wire Fraud Scams at Closing
- What to do if the buyer backs out
In some cases, it may make sense to consult with your agent and weigh the pros and cons of the costs of repairs versus letting the buyer walk and re-listing your home as-is. If you’re selling your house on your own, then it makes sense for you to attend the home inspection. If you’re working with an agent, it’s best to have them attend on your behalf. Buyers must take care to complete inspections within deadlines outlined in the contract or risk forfeiting their earnest money.
The inspector will look for signs of decay, including missing or broken parts. In addition to noting any problems, home inspectors also point out the positives! They will inform buyers of things that won’t likely need to be replaced anytime soon. They will point out the “good things”, that in turn make buyers feel comfortable and reassured about the house they want to buy. Make sure you bring up items that are only deal breakers for you to purchase the home.
Colorado’s Top Rated Inspection Company:
I tend to drive too fast and scream at the University of Texas and Denver Broncos football teams. My two kids are smarter than most adults I know and my wife is simply amazing. The 2019 Contract form contains a new deadline related to inspection, the “Inspection Termination Deadline.” There’s lots of confusion about how to use this deadline. This is where having expert knowledge and being privy to insider tips — especially in a competitive market — can be an invaluable tool. A top agent can lend you the upper hand you need to be competitive to land the home of your dreams.
It’s the little things, though, that bog down transactions, sometimes bringing them to a halt. If a buyer really wants the home, they should ignore the small stuff and fight for what actually matters. Lenders also frequently require to have the water quality tested. Contaminants obviously pose a risk and you won’t necessarily see, taste or smell their presence. The U.S. Environmental Protection Agency suggests the water be tested for nitrates/nitrites, coliform bacteria, lead and pH. The inspector will also make note of potential problems – those that may occur in the near future.
What is a home inspection contingency clause?
The result is a home inspection report, which details the current condition of the home and alerts buyers to any major issues. Most buyers request a home inspection when buying a home so they can avoid spending thousands in unexpected repairs after closing, and to protect themselves from overpaying for the property. Foreclosures, short sales, and estates are typically sold “as is”. Homeowners who know they will not make any repairs will also their their homes “as is”.
Most of the time, the pest inspection is paid for at settlement instead of being paid in advance. Home buyers pay for this inspection, and as a result, receive a copy of the inspection report after the inspection is completed. Carried out by a professional, all of the home’s systems will be checked, from the HVAC to plumbing and electrical.
How to Handle an Inspection Objection
Melissa Spittel is a local real estate expert who serves Carroll County and the surrounding areas in Maryland. Her knowledge, skills and experience are invaluable when it comes to buying or selling a house. Her experience working with out-of-state buyers and sellers makes her a great relocation REALTOR®, and she is part of Coldwell Banker’s Relocation Team. Melissa can easily connect you with a REALTOR® from her wide network of real estate pros.
A home inspection contingency clause is a stipulation in the purchase agreement that says the buyer can inspect the home, top to bottom, and then decide whether to move forward with the purchase. If your contract contains an inspection contingency and the applicable deadline hasn't passed, the seller should return your earnest money deposit. Whether your inspection contingency period is the typical 10 days or you’ve agreed upon a different time period in your contract, have patience. Buyers have until the end of the contingency period to back out of the sale or risk losing their earnest money.
Houses that have been well-maintained may fall into this category. In this instance, buyers may be very pleased with the inspections reports and be ready to move forward with the purchase of their new home in Maryland. If the roof is leaking, causing mold and water damage, or is sagging in areas, it should be an area of concern for you as a home buyer. Beyond the potentially thousands of dollars in damage it can do to the property, it's a large expense to repair right after buying a home.
To make an offer more competitive on a house, a buyer can choose to waive a home inspection contingency clause. To protect yourself and your money, there are a few things as a buyer you’ll want to include in your home inspection contingency clause. If the inspection revealed issues and you’d like to back out of the contract, as long as you completed the inspection within the deadline, you’ll get your earnest money back.
Bids from contractors to determine the cost of fixing or replacing whatever is at issue may be necessary, but adjusting the purchase price remains an option. There are some repairs, such as electrical, roof, the HVAC system and plumbing, that Maryland home buyers can reasonably expect the seller to make. Certain areas in Maryland are known for having elevated levels of radon in homes. Testing involves the placement of either 2 charcoal canisters or a digital device that are placed in the basement. The seller doesn't usually fix asbestos because the house itself is safe as long as it stays undisturbed.
In real estate, an inspection period is the timeframe during which buyers have the opportunity to perform their due-diligence on the piece of property they intend to buy. It gives buyers an opportunity to inspect the property, and if it doesn’t meet their standards, they can either cancel the contract, or renegotiate the terms. If the contract is canceled, the buyer doesn’t lose money in the process. During the contingency period, a buyer can submit a repair addendum requesting repairs, which you, the seller, can decide to accept, negotiate or deny. Buyers often fear they won’t be able to afford to replace an aging item after it breaks. A home warranty might ease their anxiety and save a seller money in the process.
This part of the contract is either included or excluded when buyers make their initial offer to buy a property. If you still want to go forward with the purchase of the home but want the buyer to make some repairs, you can have your real estate agent prepare a Buyer’s Inspection Notice. The notice should include all of the repairs that you would like the seller to make. The repair request must be made within the 10-day inspection period, and you can only submit a Buyer’s Inspection Notice once.
Both buyer and seller should take careful note of all deadlines and expiration dates to ensure the contract is followed and the deal is satisfactory and successful. This might not be the case with all purchase contracts, so read yours carefully. But if you are using a state-approved form for the purchase, you will in all likelihood be able to back out of the contract before the inspection deadline for a wide range of reasons. After all, before putting in an offer, most buyers only see the house once or twice.
This means buyers know up-front that no repairs whatsoever will be made by the seller. In this instance, buyers have the option of buying “As-is without inspections” or “As-is with inspections and right to terminate”. When there are any issues of concern, the buyers and their agent will make a list on a form known as the “Property Inspections Notice”. This form, along with the relevant inspection report, are then forwarded to the seller’s listing agent.
For example, if the home's water pressure is low, the home inspector will note the low pressure on the home inspection report and suggest that the buyer hire a licensed plumber to take a look. The cause could be tree roots growing into the plumbing system, or the pipes could be corroded, but a home inspector can't tell any of that from a visual inspection. Under last year’s contract, many brokers in competitive purchase situations would delete the inspection resolution deadline. This essentially created a contract whereby the buyer could terminate upon inspection, but the buyer could not object and then seek a resolution.
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