I often get asked this question, particularly from first time home buyers. Understanding the process is something buyers need to know in advance, and I always take the time to ensure they fully understand the meaning of all the clauses contained in the Offer.
Educating Buyers about the home inspection is fundamental, to make them aware of the primary reason to conduct a home inspection, which is, to look for major structural defaults, i.e. cracks in the foundation, whether the shingles are in dire need or replacing, whether the furnace is on it last leg, etc. Small items like a leaky faucet or an outlet that doesn’t work are not reasons to back out of a real estate transaction.
It is very important you have your home inspected by a certified/registered home inspector, not your “uncle Charlie” who knows a lot about houses, or a contractor friend.
No house is perfect, not even new builds, and there will always be little things that the inspector will point out..but small, insignificant issues are not reasons to negate a real estate transaction, “don’t sweat the small stuff.”
After the Offer is accepted, and the home inspection has been completed, then what?
Buyers have 4 options after the inspection has been completed.
1. If the Buyers feel there are too many items identified that need repairing and it would be too costly for them to address these issues, then they walk away, as it is their right to do so. Both parties sign a Mutual Release and the Buyers get their deposit money back, in full.
2. If the remedies are again, too costly for the Buyers, and are unexpected, they can then submit an Amendment asking the Sellers for a price reduction to compensate them for a reasonable amount based on the deficiencies the house inspector identified.
3. Their third option, and one which I don’t normally recommend, is for the Seller to remedy the deficiencies found. This can lead to difficulties, as the Seller’s definition of “workmanlike manner” does not necessarily have the same meaning or expection of the Buyer. The work could be hastily done, and done incorrectly, causing the Buyer problems down the road.
4. And the fourth option, is to be happy with the report and firm up the deal!!
I live and work in STEETSVILLE. Are you considering buying or selling, or know anyone who is? Please give me a call. I love referrals! (416) 717-6331.
Your STREETSVILLE Real Estate Agent
Dedicated to providing outstanding service to each and every one of my clients!