Home Inspection and Repairs

Home Inspection Checklist

Most buyers overlook the fact that negotiations do not end when the agreement on the price reached and the purchase contract signed by all parties. There are a variety of contingencies and procedures that occur after purchase contract ad before closing.  There are many factors that often lead to falling apart of many signed and executed contracts.  Among these factors, the most notables are appraisal and home inspection issues.  We will discuss the process of appraisal in another section but for now, the following are the main aspects of any home inspection:

• Structural Inspection
• Roof Inspection
• Mechanical Equipment Inspection
• Plumbing Inspection
• Electrical Inspection
• Termite Inspection
• Mold & Other Environmental Threats

And for properties that are located in the urban area:

• Wells & Drinking Water Quality Inspection
• Septic Systems Inspection

Although your inspection might not call for all of them, and a few could be mixed or performed by different home inspectors, but generally the first 6 reports are common in any home inspection in Florida.  It is noteworthy to irritate the point that most inspection report will contain many small details that it should not affect the buyers’ decision but for larger issues enter another round of negotiation.  It is our duty to obtain the appropriate inspections, schedule them, and make certain that they will be carried out by the due date.  Failing to finish inspections, or relay the buyers’ objection to their outcomes, by contract dates can lead to the termination of the contract by the sellers or inability to seek for remedies to the problems that have surfaced after the inspection. I make certain that this neither scenario would materialize.

Upon completion of an inspection, there might be some issues discovered that you simply were not planning on and don’t wish to deal with.  This can become the second negotiation within the contract process. I go over inspection outcomes with my buyers and put together paperwork that are necessary to request seller’s actions and modifications. Sellers most often have the tendency to feel obligated for taking any remedial measures.  At this stage the offer and contract process turn into a crucial negotiation tactic all over again, particularly if the issues are substantial.

We are present in any given moment of any negotiation and ready to assist the buyers in necessary talks that might hinder the success of the purchase.  When it comes for the reasons that makes a contract fall apart, the selling price, appraisal and the inspection are classified as the main factors.  Occasionally creative negotiation has to be employed to maintain the purchase process on track especially after the seller is not cooperating with the request for repair or any other remedial demands. As skilled negotiators we tackle and resolve many similar issues this every single day and sometimes we can resolve the issues by simply getting a quote for the repairs from one of contractors with great track record.  This usually allow for seller to realize the amount of money required for fixing the problem is very little compare to the value of the whole deal and they have a change of heart.

The main element to maintaining an offer proceeding with inspection issues is that we stay engaged at all time and all the way.  We will make certain that every single resource is utilized to maintain your property purchase on course and obtain every single feasible concession from the sellers.

Home Inspection and Repair Negotiation

Most home sellers and buyers assume that price negotiation is finalized upon signing of the contract by all parties until the inspection report unearths some hidden problems.  The inspection reports are actually software programs, which the inspection companies purchase a subscription for the software.  The reports are fairly standard and although the forms may look different from one company to another, but the content covers the same items including roof, electrical, plumbing, and termite.  Depending on the inspector some reports are very detailed while others concentrate on major issues.  The problem with the detailed information is the possible negative effects of them on inexperienced home buyers who may become overwhelmed with a laundry list of repairs, which in reality majority are minor issues.

Regardless of the report type, some repairs are costly enough to either break the deal or trigger another round of negotiation.  The following are the actions necessary by both the seller and buyer in order to remedy the issues raised in the inspection report:

• Cancellation of the Contract – Buyers is completely turned off or have a change of heart and will simply opt for the termination of the contract.  This is absolutely within the contracts’ guidelines as long as the inspection period has not expired.  The default inspection period is 15 days in Florida Sales and Purchase Contracts, but could be any number of days as long as both parties have agreed to the terms.
• Seller Concession – Seller will pay buyer a predetermined amount at closing for repairs of the items listed in the inspection report.
• Lowering the Price – Seller will agree to a lower sale price to compensate for the necessary repairs.
• No Concession – The best outcome for the sellers is for buyers to continue with the purchasing process by accepting the property “AS IS” without asking for any concession from the seller.  This normally happens in a strong seller’s market when prices are on a continuous rise and buyers feel the market adjustment will easily justify the costs to remedy the inspection issues.

It is important to note that not all inspection issues are repairs related, an example is the requirement for tenting the property in case of the severe termite presence.  Also, the inspection is not the only event to trigger a price renegotiation, as appraisal reports could also force the sellers to lower the contract price to match the appraised amount.