Home Buying in 84105>Question Details

David, Home Buyer in Salt Lake City, UT

Inspection process

Asked by David, Salt Lake City, UT Mon Jul 7, 2008

We made an successful offer on a sweet 1950's house but the inspection cites serious problems with some of the mechanical items, e.g. the roof probably leaks and the electrical is haphazardly done. What should we do? Ask to have all of it fixed or offer to split some of the cost? Try to get out of the contract and get our earnest money back? I think that's a lot of problems to pay for the priviledge of fixing them? It 's is a buyer's market, correct?.

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First, you should know that buyer's market doesn't mean the buyer gets everything he asks for. It all depends on price, location, current market environment. Some areas aren't experiencing a downturn.

Strategize with your realtor about the repairs you want, keeping in mind how much you're paying for the house --- is it at, less, or more than comps in the area? If the inspections indicate serious repairs that will minimize any gains you may have in the price you are paying, then you should have room to negotiate.

The question you should ask yourself is, how much to do you really want the house? If in your mind, the repairs are more than you are willing to tackle, then you may be better served to move on and find another property that may be less stressful for you to take over.

Never fall in love with a house so much that you let your heart rule your head.

Wishing you the best of luck
1 vote Thank Flag Link Mon Jul 7, 2008
David

This is exactly what the home inspection is supposed to do (uncover potential or existing problems). I take it you don't have an agent helping you or the question would have been directed to them versus this forum. You now need to send the Seller a list of objections stating these the defects and issues that were found (you can give them a copy of the inspection). They have the option of addressing the issues (fixing them or giving you some credit or lowering the price, or doing nothing at all. You can then figure out if this sweet home is really worth what you are paying. If it isn't, you can cancel the contract (as long as you are within the Evaluations & Inspection period.
0 votes Thank Flag Link Tue Jul 8, 2008
Hello David,
I always recommend to my clients both buyers and sellers to have the home inspected by an NACHI member. By having an inspector complete a non-invasive visual examination of a residential dwelling, which is designed to identify observed material defects within specific components of the subject will give you a better understanding of the home you are about to purchase. Components inspected may include any combination of mechanical, structural, electrical, plumbing, or other essential systems or portions of the home.

Whether requested by a buyer or seller the initial report will always be the same. I always preface the recommendation with the warning that the inspector’s service & report will identify many items in the subject property as defective, requires attention, out of code, or beyond its functional lifespan, ect, ect. The point of conducting the inspection is to identify specific health, safety, and structural issues. Once the initial report is completed we then review the high priority items. If these issues need further inspection by a licensed technicians or special inspections, they are completed as required.

No house is perfect, new or old, a major consideration for you and your agent as you analyze the numbers will be "Do the comparables in your CMA's reflect the same property conditions, or do those homes reflect repaired or updated conditions?"

If the average home is updated and in good condition and the seller is unwilling to remedy the issues or items a price adjustment is required. Still no go? If the items are more than you can handle or live with then it is time to move on. Your lender and or appraiser may also have problems with these items which can result in more difficulty approving and closing the loan. The deal is not dead until it’s really dead, so ask for what you want & need, you are in control of what is an acceptable resolution to you!

Make sure that you have ample time in your contract deadlines, to protect your earnest money, if special inspections or quotes from licensed techs are requested make sure they deliver before the expiration of your "Inspection Deadline" to ensure your ability to request seller repairs, price reduction, or cash in lieu of repairs (if allowed by the lender, loan program).

Thank you for visiting Trulia.com, I hope my response is helpful. Good Luck! -Kris

Kristopher Furrow – Realtor® RealEstate.com Realtors® 801.916.0815
Realtor - RealEstate.com Realtors®, Utah license # 5489913-SA00
Loan Officer - Envision Lending Group, Utah license # 5489913-MLAF
Web Reference: http://www.krisfurrow.com
0 votes Thank Flag Link Tue Jul 8, 2008
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