A Buyer’s Right to Peace of Mind
For most of us, buying a home is probably the largest and most important purchase we’ll ever make. And unless you are an expert, it is highly unlikely that you will recognize a home’s minor problems let alone a major structural flaw during a typical house viewing. Fortunately, as in automobile purchases, Buyer’s have the right to “test drive” their prospective new home. It is our policy at Beach Realty & Construction to make sure all our Buyers have a home inspection performed during the due diligence period allowed by our Offer to Purchase and Contract.
A good home inspector will give you an unbiased assessment of the structural and mechanical well-being of the home. A home inspector will discover and identify any existing or potential problem areas and give an overview of the foundation, grading, drainage, basement, walls and floors, ceilings, doors and windows, roofs and roofing systems, plumbing and electrical and heating and cooling systems. Some home inspectors will offer suggestions and advice on how to solve the problems as well as list them in order of priority.
A home inspection usually costs upwards of $450 depending on size and is priced according to square footage of the home. This could very well be the best money you ever spend. Your “Beach” Realtor® can furnish you with a list of home inspectors in this area but you should make sure of the following:
- that they are well established and can offer references;
- that they are independent and unbiased - they have no affiliation with any real estate firms that might create a conflict of interest.
- that they will provide a thorough written report of their findings;
- that they are adequately licensed or members of ASHI (American Society of Home Inspectors) or NAHI(National Association of Home Inspectors).
Home buyers rely on the inspector to examine the home carefully. They’ve already seen the damaged drywall and the peeling paint, but when an inspection reveals an unexpected condition the buyer could be prevented from making a costly mistake.
During the due diligence period, a buyer is free to inspect and discover any and all systems within the property and in addition all zoning issues, environmental concerns and anything that may have a bearing on the buyer’s decision to purchase the property. Before the due diligence period expires, a buyer has the choice of terminating the contract for any reason or no reason at all. After the due diligence period expires, a buyer is unable to terminate the contract because of inspection issues. The buyer is essentially saying that he accepts the property and will go forward with closing when the due diligence expiration date comes and goes.
If any repairs are necessary, the buyer has the right to request that repairs be made by the seller. The seller has the choice to fix the items, or not. If he chooses not to fix and the date is before the due diligence period expires, the buyer may terminate and receive his earnest money deposit.
When the inspection is done in a timely manner, the Buyer and the Seller have the opportunity to negotiate the various items, get estimates for the cost of repairs, decide who shall complete the repairs, or even escrow the cost of the repairs at closing if they cannot be completed in time. When preparing an Offer to Purchase, your Beach professional will offer advice and guidance on allowing enough time for all inspections, repair negotiations and loan conditions to be satisfied during the due diligence period.