Thursday, July 25, 2019 / by Barry Owen
Immediately upon receiving a Binding agreement, one of the first things we recommended the Buyers to do is to order the inspection(s).
We have found that the optimal amount of time for this "Inspection Period" is 10 days.
Sometimes, Home inspectors are booked for some days and cannot schedule quickly.
Additionally, we want to build in enough days for any "expert Reports" to arrive and for us to study these reports to feel confident in the condition of the house.
We (Paretozoans) can recommend reputable and thorough Home Inspectors.
Most Home Inspectors have on-line scheduling and payment in advance available.
They will have you sign a "Home Inspection Agreement" which details the scope of the inspection.
A home inspection typically takes 2-5 hours to complete (Depending on the size of the house and issues found).
Your REALTOR will coordinate access with the Listing agent.
Some agents choose to be present for the whole inspection while others don't.
We always minimize our interaction with the inspectors during the inspection, so they can focus on their inspecting duties.
Most inspectors request the Buyers come @ 1/2 hour before completion, so the Inspector can summarize the findings and answer questions.
They usually email the full report to the Buyer within 24 hours.
Upon receipt, the Buyer typically forwards it to the REALTOR, and together we study the findings.
Bear in mind that there is NO perfect house. Even brand, spanking new house can have multiple, small issues.
Our primary focus is on addressing the most important issues . . . Things that not operating as they should - Plumbing, Electrical, Roof, Crawl Space, Water Intrusion, Fungus/Mold, Radon.
There may be issues that merit evaluation by an "expert" to determine possible solutions. e.g. Radon gas, HVAC system under-performance, Crawl space moisture, Roof leaks, etc.
The contract specifically notes that there is not a requirement to bring any components up to current code standards as long as they met the standard when they were installed. (Codes Change over time).
Additionally, aesthetic objections are not functional.
The Buyer has 3 options:
1. Accept the property as-is and therefore not requiring the Seller to make any repairs using the RF 656 "Notification" form
2. Draft an RF 654 Repair/Replacement Proposal
3. Terminate the contract based on Property Condition using the RF 656 "Notification" form (Earnest money returned to Buyer)
If #2, The ensuing process is that Buyer with REALTOR determine the issues of most concern to the Buyer. These issues are then listed on RF 654 Repair/Replacement Proposal, and we submit this proposal along with pertinent comments/photos from the report to the Seller (Listing Agent).
The Buyer MUST provide this proposal within the prescribed "Inspection Period" . . . If not, then the buyer forfeits the rights provided and accepts the condition as it is with no requirement for repairs.This Repair/Replace Proposal is NOT a binding agreement. It is only a proposal and is only signed by the party making the proposal.
Upon Seller receipt of the Repair/Replace Proposal, the "Resolution Period" commences - See Step 12