Home Inspection and Your Purchase Contract

When buying a home, buyers should always have a home inspection. In Indiana the Purchase agreement states that if a buyer reasonably believes that the Inspection Report reveals a defect with in the property (under Indiana law, "Defect" means a condition that would have a significant adverse effect on the value of the property, the would significantly impair the health of safety of future occupants, or that if not repaired, removed, or replaced would significantly shorten or adversely affect the expected normal life of the premises), and after having given the seller the opportunity to remedy the defect Seller is unable or unwilling to remedy the defect to buyers reasonable satisfaction before closing (or at a time otherwise agreed to by the parties), then buyer may terminate this agreement or waive such defect and the transaction shall proceed to ward closing. BUYER AGREES THAT ANY PROPERTY DEFECT PREVIOUSLY DISCLOSED BY SELLER, OR ROUTINE MAINTENANCE AND MINOR REPAIR ITEMS MENTIONED IN ANY REPORT, SHALL NOT BE A BASIS FOR TERMINATION OF THIS AGREEMENT.

Keep in mind that many times there are things that come up on an inspection response that the seller had no idea was there. Most homeowners don't routinely go into their crawl space or attic, and that is where most of the "surprises" come from. Don't automatically assume the seller knew something and didn't disclose. When you start off inspection negotiations, being accusatory, insinuating the seller knew or the seller won't have the job done correctly, you are setting yourself up for the seller to move on to another buyer that is willing to be reasonable.

So, what does this mean to you as a buyer? If an inspector recommends items to be done to a home, they aren't necessarily items to ask the seller to do. Most inspectors use this as a time to educate a buyer on routine home maintenance. Broken window, absolutely ask for it to be repaired/replaced, small tear in the screen- probably not. Nail pop in the drywall, not really, hole in the drywall yes.

In our current market, the number of homes to choose from is dwindling. If a buyer uses the inspection response to try and have the seller make the house "brand new" there is a chance that the seller, will say no, and ask for a mutual release. Especially if it's an area that is hot and there are multiple offers on a single property.

Also, if as a buyer you reasonably feel there are issues that the seller should address, ask. If the buyer sends a mutual release from the purchase contract as opposed to an inspection response, there is a chance the buyer will lose their earnest money. If asking a seller to make repairs, it should be the sellers decision which contractor they pay their money too. Insisting a seller use a contractor of the buyers choosing, will put doubt into a sellers mind as to the amount the seller is being charged, and if that amount is reasonable. None of us wants anyone else spending our money for us, or telling us how to do so.

Work together so that the transaction happens and you get the keys to your new home!!