Buying A Home – Removing Your Inspection Contingency

When you purchase a home, your contract should contain an inspection contingency. Once the property has been inspected, you’ll receive an inspection report detailing all the hidden flaws or problems.

Once you completely dissect the report, you’ll need to make a decision if the defects can be fixed and if the property is habitable; which party is going to take care of the repairs; and what alternatives there are when both parties are unable to negotiate a successful agreement on who foots the bill for the repairs. Let’s review these concerns one by one:

1) Can The Flaws Be Eliminated? – Contact an experienced home inspector or contractor and determine if the problems can be fixed and what the cost will be. A concrete foundation that’s slowly sinking over time can’t be corrected easily, but an incorrectly plumbed bathroom can be easily corrected.

Once you determine the problem is too difficult to renovate, you need to reconsider if you’re still interested in purchasing the property. Completing a large repair job will easily take several weeks and may force you to check out other properties. Reviews of some state regulations permit a seller the opportunity to remedy the problems before you’re allowed to terminate the deal. If the defect ends up being virtually irreparable, you have a good chance of canceling the deal.

2) Who Covers The Repairs? – You might think the seller should be responsible for all repairs, but if you bombard a seller with too many requests, the seller may refuse to sell the property to you. But if you know the seller is in a bind and wants to sell quickly, you can push for more concessions to have the seller cover more repairs. But if you are facing competition from other homebuyers, you may want to keep your request to a minimum.

3) How To Manage The Renovations – After you come to a decision who will cover the renovations, you can manage the repairs using the following methods:

a) Have The Seller Transfer Funds At The Time Of Closing – You can request the seller transfer money into an account specifically designated for repairs you both consented to. Once you’re ready to hire a contractor, you can withdraw funds from the account to pay for the work.

b) Reduce The Purchase Price By The Cost Of The Renovation – If you can accomplish this with the seller, you’ll benefit with reduced property taxes (if applicable) due to a lower sales price.

c) Make The Seller Responsible For Completing The Renovations – This should be your last choice. A seller has little incentive to invest their profits into fixing a home they won’t enjoy. It’s not surprising most sellers will hire an inexpensive repairman, or even worse, attempt to complete the repair on their own.

d)Request The Seller Cover The Bill For Your Contractor – At first glance, this option may seem appealing, but if you run into unforeseen problems, the renovations could take longer than expected and delay your closing date.

If you’re applying with a regular bank, they may require you to finish the repairs before the deal’s funded. If you have no other choice but to use your own funds to cover the renovations, you may want to inquire if your lender would be willing to include the repair expenses into your home loan.

Are you searching for Anaheim Hills homes for sale, then check out these local Anaheim Hills Realtors to locate the best one.