Lehigh Valley Homes & Real Estate – The Home Inspection 4 Things Buyers and Sellers should know – When selling a home in Allentown, Bethlehem, Easton or the surrounding area..you should be prepared when it comes to the home inspection.
Tips for Lehigh Valley Buyers and Sellers about the Home Inspection.
This information will apply to you ONLY If you plan on working with a Real Estate Agent to buy and or sell a home in the Lehigh Valley PA area. If you plan on selling your home as a For Sale By Owner..this may not apply to you. This ONLY applied to those who will be using the PA State regulated Residential Standard Agreement of sale for the Sale of Real Estate.
These Tips will help Buyer’s Make stronger offers that will stand up against other competing offers and give Seller’s ideas of key areas that they should consider with negotiating the offer they get on their home. In my opinion these Tips are beneficial for the buyer and the seller.
1) Buyers & Sellers – You have two options when negotiating the Home Inspection condition of the agreement of sale.
OPTION 1: Says “Mr. Seller I am a smart buyer and I am going to get a home inspection and no matter what the home inspection report says, I have the right to walk away and get my deposit money back”
OPTION 2: Says “Mr. Seller I am a smart buyer and I am going to get a home inspection and no matter what the home inspection report says, I will be forced to negotiate with you first BEFORE I walk away and get my deposit money back”
MY Opinion: Option 2 keeps everyone communicating and while the intentions of both sides is for the buyer to buy and the seller to sell…this is just a much better way to sign an agreement of sale with a home inspection condition in my eye’s.
2) Buyer’s & Seller’s – When the offer is being negotiated be familar with the Home Inspection Exclusion Clause area of the Agreement of Sale…you should be keeping in mind if the home is being listed and sold with the roof needing to be replaced as an example or the buyer knows that the Furnance is at it’s end of life and they plan on replacing it and this is the reason for their offer at lower than current market value…items that are not being considered to be conditioned on the home inspection should be written as an exclusion in the home inspection condition section. This is really important when negotiating…because if a seller is going to give a buyer a large discount due to replacing the roof or doing any major mechanical items…then the buyer comes back and says..after the home inspection..well, the inspector says the roof needs to be replace…anything that is NOT in writing is NOT in writing. Keeps everyone honest and also makes a buyer’s offer stronger against other competing offers…because very few people use the exclusion field of the Agreement of Sale. I have beat many competing offers due to adding exclusions to this area.
3) Buyer’s & Seller’s – You should know that there are a few different types of inspections that will be conducted the home for the buyer during the execution of the agreement of sale. Which can cause reasons for re-negotiations 2 to 3 times over before settlement. There may will be the following inspections on the home depending on the Home Buyers Type of Mortgage, The inspection conditions requested by the buyer, Home Insurance Company selected, the Muncipality the home is located in.
Who may inspect the home which can cause a reason for future negotiations due to repair requests
1) The local municipality for a CO resale inspection
2) The Typical Home Inspector
3) The Mortgage Appraiser – Could be for FHA or Conventional apprasial
4) The Septic Inspector (unless it’s public water)
5) A Water Test if it’s well water (unless it’s public water)
6) A Radon Inspector
7) The Homeowners Insurance Company
8) A Termite Inspection
All Inspections must be conducted within 15 days ACCEPT the appraisal. The appraisal needs to be completed prior to the Mortgage approval Date which is another deadline within the Agreement of Sale.
4) Buyers & Sellers – The Typical Home Inspection time Frame and Who should Attend? A Home Inspection for a home that is 2000 sq ft takes about 3 hours. Seller’s you really should not be home – Buyer’s you should be there …not only to learn about your new home, but to make sure the inspector is doing what he is suppose to be doing and I even believe the Buyer Agent should also be present just in case there are issues …so everyone can get a visual of the problem and negotiations can be conducted in a clearer and more professional manner.