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Can I get out of my contract because of the home inspection results?

cancel-contractIn my last blog post I explored the question Do I need a home inspection? Now that we know a home inspection is a must, what do we do with that information?

The Arizona real estate purchase contract gives the buyer ten days after contract acceptance to to have an inspection performed on the property. After the inspection i completed the buyer needs to notify the seller through a Buyer Inspection Notice and Seller’s Response (BINSR) either they accept the property as is, want to ask for certain repairs to be made or are backing out of the deal all together. After the BINSR is delivered to the seller, the seller has five days to respond in writing if they will make the requested repairs or not. A failure to respond is deemed as a refusal to make the repairs.

If you are going to ask for repairs, make sure you ask for everything you want repaired at this time. You cannot decide you want the garbage disposal fixed now, then come back in another week and say you changed your mind and want the garage door repaired too. If you may want the repairs made, ask for it all at once.

The ten day inspection period gives you other opportunities to cancel the deal. Even if the home inspection came back perfect, that does not mean you do not have option. Maybe you did a little research on the Internet and found out there was a sex-offender a couple houses down and that was a concern to you. Maybe you found out from the neighbors there was a barking dog right next to you and he barks from 7am-5pm every day. You even could decided after looking into the school district a little more that was not where you wanted to send your kids.

The inspection period protects the buyer by providing them a chance to do their due diligence on everything that could concern them. It is there for you, so use it.

Do I need a home inspection?

leaky-plumbing-problemYes. Thanks, come again for our next topic.

That is for the people like me who like to get right to the point. For those who like a little more meet to your subject I will go on. I just came back from showing a foreclosure home to a couple who is looking for a second home in Gilbert. For those of you who enjoyed our 87degree day in February, you understand why they would want to move here. When they asked about the process of buying a foreclosed property I was explaining to them the first thing you do after you get an accepted offer is to get a home inspection. They said “we don’t need that.” This is where buyers actually having a licensed real estate agent working on their behalf pays off.

I explained to them how spending $300-$350 bucks for a home inspection could save them thousands or even tens-of-thousands in the long run. While the home was very clean and looked like it was maintained well, you never know what is behind the walls or in the plumbing or wiring. A home inspection should not even be an option, even on a new build. More on that in a minute.

Worst case scenario, you pay around $300 to find out the home you are buying is in perfect shape. But, that $300 should be considered a great investment to give you peace of mind. Most of the time that will not happen. There will usually be something wrong with the property and it may be as simple as the air conditioning unit needs to be serviced or a countertop is loose. A good quality home inspection will point out all the flaws, small and large.

What if your home has termites, or a couple of trusses are cracked in the attic. These are things you would like to have known before you made that large investment. You do need a home inspection because there will almost always be something wrong. Knowing before hand gives you the opportunity to fix them when you move in, ask for them to be fixed before the deal moves forward or it gives you the opportunity to get out of the deal all together.

Then the not so obvious question, do I need a home inspection on a new build home? Yes I would even get one there too. You think a builder has never cut a corner or an employee has never made a mistake and tried to cover it up? I am not saying it always happens, but it happens. Two weeks ago I was at a home inspection for a buyer who was purchasing an eight year old home. The inspector had just come from doing an inspection on a new build. On the eight year old home he found about 7-8 minor things wrong with the home, nothing big enough to stand in way of the deal getting done. On the new build he reported 28 problems with the home. Three times as many issues on the new build as a house that was almost a decade old.

I don’t think there is an agent out there who is really looking out for their clients that would not recommend a buyer gets a home inspection a house they were buying.