Lorraine Ryall
Once the offer has been accepted and any counters are fully executed by all parties associated with the buying and selling of a home, you are in the inspection period.
Unless stated otherwise, it is a 10-day inspection period, and the days start from the date the contract or the last counter was accepted.
The inspection period is for the buyers, at their expense, to conduct any desired physical, environmental and other types of inspections or investigations to determine the value and condition of the property. The buyers usually will have a home inspection and a termite inspection done, and also should take this time period to look into any other material facts deemed important, such as close by airports, crime rate, etc.
At the time the offer is written, the buyers also will receive the Buyer Advisory. The advisory is designed to make the home buying process as smooth as possible. Some of the more common issues the buyers may decide to investigate or verify are summarized in this valuable resource. It’s a great source of information and lists useful websites and tips.
Inspection
The home inspection and termite inspection usually are done at the same time. The inspection takes several hours, and the buyers will meet the inspector and their Realtor at the property for the last 30 minutes. This gives the inspector the opportunity to go over his findings and anything he feels needs to be pointed out to the buyers.
The inspection report can be very detailed and overwhelming. So, having the opportunity to go over it with the inspector at the time of inspection and have him point out any areas of concern is a great benefit. If I have out-of-town buyers who cannot be present for the inspection, I will arrange for us to Face Time or Skype, so they still have the opportunity to go through the house and ask the inspector any questions.
Once the buyers receive the inspection report, usually within 24 hours, they will go through it and decide which items to ask the seller to repair. The inspection is not for the buyers to nitpick every little item, but to ask the seller to fix those items of personal concern or of importance.
Seller’s Property Disclosure Statement (SPDS)
This is a form the sellers complete whereby they disclose any material facts about the property known to them, such as if there have been any water leaks, the names of the utility companies, if they are aware of any noise issues, etc. It must be delivered to the buyer within the first five days after contract acceptance. As a seller, it is very important to answer all questions as truthfully and as thoroughly as possible.
Insurance History
The sellers will provide the buyer a five-year insurance claims history within five days after contract acceptance. The sellers can call their insurance company, and it is usually emailed within 24 hours.
Buyer’s Inspection Period and Seller’s Response (BINSR)
The buyer will fill out the Buyer’s Inspection Notice and Seller’s Response (BINSR), and request any items to be repaired by the seller. The BINSR has to be delivered to the seller prior to the expiration of the inspection period, and as soon as it is delivered, the inspection period ends. If it is not submitted within the specific timeframe, the buyer is agreeing to move forward without any repairs being done.
Warranted items—Per the terms of the contract, the seller is obligated to have all warranted items in working condition. Warranted items include heating, cooling, mechanical, plumbing, electrical, free-standing range/oven and built-in appliances.
Once the BINSR has been submitted to the seller, the seller has five days to respond. Warranted items are nonnegotiable. However, all other items are negotiable, and a lot will depend on the purchase price and how many repairs are being requested.
If the buyer is paying full price and only asking for major items to be repaired, the seller is more inclined to agree to it. If the purchase price was lower than expected, or there are a lot of disapproved items, the seller may choose to only fix a few of them. This is where some contracts fall apart. So, it’s very important to have a Realtor with strong negotiation skills represent you. Oftentimes, it’s not black and white and requires some creative negotiating.
If you would like to start working with a local Realtor, or for more information on buying or selling a home, please contact me, or visit my website.
Lorraine Ryall has been a Multi-Million Dollar producer for the past seven years. You can reach Lorraine at (602) 571-6799. You also can send her an email at Lorraine@Homes2SellAZ.com, or visit her website at www.Homes2SellAZ.com.
