You are now UNDER CONTRACT!!
The search is over and you have found, “THE ONE.” Now we are moving on to our next step in your Home Buying Process, which is, INSPECTIONS. Forms of Inspections you are entitled to are: Home Inspection, Termite Inspection, Well & Septic Inspection, Soil and any other type of inspection your heart desires.
We have 10 days from the time that you officially go UNDER CONTRACT to ask for any Latent Material Defects found from the inspections to be repaired. We will formally ask for these repairs in an Addendum that we call, The Repair Addendum. So what is a “Latent Material Defect” you ask? A Latent Material Defect are defects that a normal person couldn’t see by walking through the home. Examples are: plumbing leak in the crawl space, roof damage and termites.
Once we have submitted our Repair Addendum we ask for your patience. The Seller has up to 10 days to respond back to our request. It usually takes 5-7 days to hear back because the Seller is getting bids from companies which can take a few days to schedule. The Seller has 4 options. 1) Fix everything that asked for in the Repair Addendum. 2) Fix some of the items. 3) Give the Buyer a Financial Amount towards the items to be repaired. 4) Deny all items. To be honest, we don’t get a full out denial very often. So, I usually don’t worry about that. If the Seller refuses to make repairs to large ticket items, the Buyer has the choice of asking to be let out of the contract. Example: The inspector recommends that a professional roofer inspect the roof for damage and the inspection comes back stating that the entire roof needs to be replaced due to damage or wear. The Seller then refuses to make the repairs. That’s a large enough that the buyer can asked to be let out of the contract. We always try to negotiate through the Repair Addendum. The LAST thing anyone wants is the contract to fall apart over inspections but once in a while, it happens.
Another item we always prepare our clients for is the Inspection Report itself. Don’t be surprised if your report comes back 40 pages long. It’s normal. Keep in mind that you are hiring an inspector to point out every little flaw this home has and every home has flaws. In my experience, 6/10 Inspection Reports come back with some kind of mildew or mold, 8/10 homes have termites. If you are on a well, 7/10 water samples come back dirty with some type of bacteria. Don’t let this scare you. It can all be fixed. Living in the Ozarks we are blessed with humid weather that is perfect for mold and hungry termites that love our wood. We go through your Inspection Report with you. If we tell you, “That’s a pretty clean house!” we mean it. However, if we tell you, “We need to RUN!” we mean that also.
Until Next Time…