At first, the buyer happily raises his prices and gets the house. Afterwards, the buyer must hire a professional to inspect the house, and realizes the defects the sellers left with. Are sellers responsible for the flaws of the house after the inspection?
The answer is quite simple “no”, real estate agents’ contract under category 14 B, explains the rules of house inspection. Within a certain amount of days after inspection, the buyer has the right to ask the seller to compensate for. Even so, the seller is not obligated to fulfill the wishes of the buyer. This was statement was added to the purchasing agreement contract in October of 2002 under category 7A. Why so? Because of the missing specification emphasis stating the right for sellers to disagree to repair of previous contracts, many disputes raised due to similar situations. This is why the contracts of purchasing agreements have been specified and changed since to allow buyers and sellers understand fully.
Truth is the real estate conditions are not used to protect the sellers. Contracts have always been an agreement between both parties. Only thing was that the previous contract had not been specific enough. So, before a case is closed and inspections are made, it is difficult for both the buyer and seller to predict the condition of the house; there is no way for the buyer and seller to decide who is to fix what. For example, if a house needs to undergo serious renovation, even if the seller decides to pay for the amount, the buyer may then later decide not to purchase the house.
Although the contract clearly states that the seller does NOT have to be responsible for the conditions of the house, the contract is in fact, still imperfect. An experienced buyer’s agent will assist the buyer to formulate a condition fee contract beforehand. The detailed fees and requests of this contract should include the responsibilities of repair the seller may have to include. This term may seem rather unjust to the buyer, but in reality, even if the sellers decides not to repair the conditions of the house, the buyer can decide not to purchase the home within a fixated date after inspection to end the agreement. If this is the case, the seller must return the deposit fee that the buyer had previously paid for. Afterwards, the seller may decide to go back on the sellers market, but then the seller would have lost a significant amount of time. While on the other hand, the buyer may lose a 200 dollar inspection fee and also time.
From the details described above, you will be able to understand reasons why buyers and sellers will have disputes over house conditions that may only cost up to $300, but still ending with failed transaction. This is why when I help my sellers decide upon their offering price, I try my best to give them less stress without having to worry about having to renovate or repair the house by reducing the offering price by $300-500. On the other hand, when I am helping a buyer, I will also request for the seller to first add $300-500 dollar on the offering price.
If you select any random house, it will be at least $100,000, who will notice a $300 or $500 difference? Most buyers and sellers will not notice an additional small amount of money when they are already paying hundreds of thousands. However, if there are big problems after the inspection, such as any type of leakages, I personally believe that it is the sellers’ responsibility. This is because these are imperfections that cannot be predicted from the outlooks. Inspection results of leakages usually cost a dear amount, which the buyer may not have previously estimated for. Of course, this sort of situations will be hard to agree upon. Although this is just a recommendation, every case has its own situations, depending on the buyer and seller. Perhaps the buyer obtained a good price deal, or perhaps the selling market is in competition amongst buyers. But either way, no matter what, as long as both parties can agree upon one another, it is a good thing.
Based on my experiences, a number of sellers are willing to compensate for the inspection results such as faucet leakages, switches, disposables, dishwashers, screens, and or windows, etc. Renovations they are not usually willing to pay for are old tiled floors, walls, and screen door handlers. Also, there are laws providing sellers to repair, such as fire detectors, water heaters, and heaters which cannot be agreed upon; they are by law!