INDUSTRY INSIGHT
T
HOME INSPECTIONS
SPONSORED CONTENT
Navigating the Home Inspection
he home inspection
contingency is a very important
part of getting to the real estate
transaction closing table. Most
sales agreements are contingent on
a satisfactory inspection outcome, as
determined by the prospective buyer.
While some sales contracts limit the
buyer’s capacity to cancel a sales contract
based on the inspection outcome, most
contracts give the buyer considerable
flexibility to unilaterally determine
whether a home inspection contingency
has been satisfied. I always tell my clients
that you have to sell a home twice:
first to get it under agreement, and
second to navigate the home inspection
contingency. The home inspection
contingency is the main reason sales
agreements are terminated.
Negotiating through the findings of a
home inspection is a delicate task. Sellers
who have mentally already banked their
sale proceeds don’t want to provide what
essentially amounts to an additional
price concession, while buyers don’t
want to buy a home that has significant
near-term repair costs. These opposing
perspectives often create tensions that
an experienced real estate agent can help
bridge.
Some sellers prepare for this
eventuality by having an inspection done
prior to listing so that they can address
any identified issues. Every seller should
consider having their furnace and air
conditioning systems serviced prior to
listing. This demonstrates that the major
mechanical components of the home
are in good working order. Sellers also
need to be aware that they are legally
required to disclose all known issues
with their home. If they go the pre-listing
inspection route, all identified issues
must be listed on the seller disclosure
form if they have not been addressed.
Most home inspections consist of
the general home inspection, radon
inspection and the pest inspection. If you
have a well or septic tank, those elements
will also likely be inspected. One
c omponent of the inspection process
that is becoming more common is the
sewer line inspection. Older homes with
terracotta lines can have major issues
that can be very costly to repair.
Sales financed through the FHA and VA
have additional inspection requirements.
Issues that routinely come up in these
inspections include chipping paint,
sidewalk cracks and missing handrails.
Once the inspection report is
completed, the buyer presents the
seller with a list of items that need to
be repaired/replaced. ALL homes have
issues…no matter how new or old.
The seller can choose to address all the
items, some items or nothing at all. The
buyer then decides whether to accept
the seller’s concessions, negotiate an
alternate resolution or terminate the
contract. Negotiations can go back
and forth up to the inspection
contingency deadline.
I am a strong advocate of
the win-win scenario. To
keep the deal together
and moving forward,
both parties need to
be heard and have
their positions
addressed. Sellers
have to address
issues, either with
the current buyer
or the next buyer.
Usually it makes
sense to work with
the current buyer rather than terminating
the contract and relisting the property.
Often, your first offer is your best offer.
Please contact the Bierker Group for
additional information regarding the
home sale process at 412.657.1136 (call
or text) or at bierkergroup.com.
ROSS TOWNSHIP
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FALL 2018
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