During most real estate transactions the home inspection is typically the most worrisome part of the transaction. Buyers want a home free of flaws and sellers believe the home is in good condition. For the realtor(s) involved the home inspection is "make it or break it" time. Cancellation - The inspection report could point out a major problem in the home that the buyer isn't comfortable with. The buyer can completely cancel the purchase contract and receive his/her earnest money back.
At the appropriate point in the contract I explain the 3 options the buyer and seller have after the inspection is completed. Most inspections will find several items that could be corrected. The inspection report will usually list them as minor or major. Items could be as simple as a leaky fossett to major such as a leaky roof.
The typical cost for a home inspection ranges from $250 - $400. Many of the home inspectors will also perform a termite inspection will. The results of the termite inspection may be on a seperate document.
Anyway, the point of this blog entry is the three options so here they are...
Re-negotiate - The inspection report will likely list several items on the report. The buyer can request the seller repair all or a portion of the items on the inspection report or even change the amount of the initial offer price. However, the seller is under no obligation to make any repairs or accept a lower amount.
Accept - The buyer can accept the inspection report and continue with the purchase. This may happen if the buyer believes he/she can fix the items themselves or isn't concerned about the issue.
The Realtor(s) is very important during this phase of the purchase. The Realtor(s) provide a different perspective and give guidance to the buyer and seller. Emotions can get high during this phase so allow your Realtor to help you through this phase.