Compare the Repairs
By : Liz Burrow , Realtor ® ( Photo by HouseLens )
The first step to getting a home under contract is negotiating the purchase price and the terms . That , however , is not where the negotiations stop . One of the most contentious parts of any real estate deal often turns out to be the discussions over the inspection repairs and how both parties believe they should be handled .
Before writing any offer , buyers should be presented with a document " For your protection get a home inspection ", as a reminder that having the home inspected prior to purchasing is always a good practice . There are two ways that inspections are usually handled .
AS IS :
With the current real estate market leaning so strongly in favor of the seller , it is not unusual for buyers to waive inspections that allow them to ask for repairs and to do the inspection for information purposes only . This is called an “ As Is ” inspection and is usually accompanied by a right to cancel . This means the buyer plans to accept the home in an " As Is " condition and not ask for smaller repairs to be taken care of by the seller . The " right to cancel " protects the buyer should they find something so significant during the inspection that they really can ' t afford to take care of it or something that is too concerning for them to move forward with the purchase . Should this occur , there is always the option for further negotiation if the seller is willing to either repair the fault or reduce the price . An " As Is " inspection is designed to give the seller assurance that the buyers will not nickel and dime them on the smaller items .
24 LakeTalk December 2020
CONVENTIONAL INSPECTIONS :
These inspections allow the buyer to ask for items that are not functioning or in disrepair to be remediated and designed to address safety concerns , malfunctioning appliances , electrics , or plumbing . These should not be confused with aesthetic items . Many agents do not explain this correctly to their buyers or set realistic expectations , resulting in unpleasant and unnecessary conflict over what is reasonable to request and what is not .
Once the items have been negotiated , it is the seller ' s obligation to take care of them , as written in the inspection addendum . As with any contract , read this carefully to ensure that all parties understand who will be carrying out these repairs . Many a misunderstanding has ensued over this . Electrical repairs should be handled by a licensed electrician and plumbing items by a plumber . For the remainder , if the owner is handy and wants to take care of them personally , ensure that this is agreed to prior to signing the addendum ; otherwise will likely state " by a licensed contractor ," and the buyer has the right to expect that to occur .
All invoices and / or pictures showing the repairs should be supplied to the buyer in good time . Do not leave this to the last minute in case there are issues . The buyers will do their walkthru and a final inspection before settlement , and if all is in good order , it should be smooth sailing for there .