Things to know when buying a property
In most areas of the country, unless other arrangements are made, the buyer pays for his own appraisal and home inspection. And, as a result, the buyer owns the inspection report. Some states require the buyer to supply a copy of the inspection report to the seller and the seller’s agent when asking for repairs. This requirement may be outlined in the purchase agreement.
A lot has to happen during the inspection contingency period—and it has to happen pretty fast. It’s your responsibility to stay on top of the deadlines and help your clients meet their contractual obligations. Per the purchase agreement, buyers have a specific number of days for the inspection period unless the parties negotiate an extension. Because of this tight window, it’s helpful for buyer clients to have an inspector ready to perform the inspection as soon as the ink is dry on the contract. This way, buyers can immediately schedule an inspection appointment and then notify you of the appointment date and time. You can then inform the seller’s broker, who informs the seller of the appointment.
The cost of a home inspection can vary, depending on the size of the property, exact location, and other issues. HomeAdvisor found that the average cost of a home inspection nationally ranged from $200 on the low end to $495 on the high end. Larger and more complex properties would be higher still.
Debbie and Dan Long are interested in making an offer on Carl’s house. They understand the purpose of an inspection contingency and have decided to include it in their offer. However, it’s a hot market, and Carl already has more than one offer on the home. Which of these are options would protect Debbie and Dan and make this contingency more acceptable to Carl?
Agree to limit seller repair costs to $500.
Agree not to ask for repairs unless they exceed $500.
Request a preliminary home inspection prior to making an offer.