Just a couple of thoughts when buying…
Most real estate negotiations begin with an offer from a buyer who has limited knowledge of the condition of the home they’re intending to purchase. Think of the last time you bought a home… Did you really understand what kind of shape the roof was in? The plumbing/electrical/HVAC/foundation? Maybe your a contractor by trade, but even then you can’t be an expert at everything right? Yes, you will have an inspection done. But it usually takes place after you’ve agreed to price & terms with the owner.
This is a problem!
2 reasons:
1) The offer you made (or are going to make) will usually be based on the assumption that because the roof/plumbing/electrical/HVAC/etc. appear to work that they actually do work.
Assumptions can be dangerous
2) Since both seller and buyer were assuming that everything was fine – when an inspection report reveals otherwise it can create issues chaos! Unmet expectations are at the root of many frustrations in life.
So, how can you combat this?
Granted, in many cases there is an allotment given by the seller to the buyer for repair issues. Most of the time this works out fine.
But…
In a perfect world the inspection would be done before price and terms were agreed to. But you ask, “who’s going to pay for this pre-offer inspection?” That’s the issue that prevents this from happening more often. If the buyer pays for an inspection only to find out that the seller isn’t willing to accommodate their price/terms, then the buyer has wasted a few hundred dollars. And if the seller were to get the inspection done, the buyer will question the accuracy of the report since the seller chose the inspector.
I think it would be best for both parties if the buyer chose the inspector and the seller paid for the inspection. Then if they come together on price/terms, the buyer can reimburse the seller. If they don’t, then the seller now knows what (if anything) needs to be done to the house and can use this in a future negotiation (although the future buyer may, again, question the credibility of the report).Just my thoughts… And of course they are based on the customs of Jacksonville, FL. There may be a city/state that already does inspections this way.
As always, if you came to the site to check out Jacksonville Homes For Sale then you’re in the right place! Feel free to call/text me @ (904) 434-5154 if you have any questions about buying/selling. Or, fill out the contact form on the right.
Cheers!
You are so right in your idea to inspect a home prior to negotiations! This really puts the home buyer in control. But, since starting HomePro Inpections in 1994, and inspection over 30,000 Jacksonville homes, I’ve never seen a single seller fund the inspection for a pre-contract buyer!
What we do see, mostly with sophisticated buyers, is the buyer funding their own inspection prior to contract. That option gets little resistance from sellers.
Keep the great posts coming. They are a great value to the community.
Best to you, Wally
PS For addition inspection ideas and answers feel free to use any and all information at http://www.GoHomePro.com
Hey Wally!
Thanks for stopping by… And I agree, not likely to happen. In a perfect world I suppose!
Would love to have you write a guest post some time.
Jeff
(904) 434-5154