Part 4 of the Idaho Real Homes LLC Real Estate Contract Series
Is there going to be a Home Inspection?
Before the offer is written you need to decide if you are going to have a home inspection done on the property. There are also other types of inspections: well, septic, survey, environmental, etc. If you are going to be wanting to inspect anything the seller needs to know that when they are reviewing your offer. It is not something that you can come back later down the road and request.
Time is of the Essence
You typically have a very small window for all of the inspections. 7 to 10 days. By the last day, you are notifying your seller of things that are not acceptable to you or that you would like to have repaired. The contract is full of time frames for the inspection to be done. You will have x number of days to get the inspections done. Then the seller will have 2 or 3 days to consider what they want to do with your home inspection requests. If you know there are a lot of things that need to be addressed, you may need to give your seller a few additional days to respond depending on the lead time for any contractors to give quotes. Typically the seller will have x number of days to decide how they want to respond to you. At which point if they want to negotiate it in the contract it will once again express how many days you have to respond to their response. Typically no more than 2 or 3 days. The windows are tighter during the negotiation process as time is of the essence in coming together on this.
Home Inspection Addendum
Once the home inspection is done, you will do all of the negotiating back and forth on a Home Inspection addendum. The main contract just lays out the time frames for things to be completed and gives you the option of laying out what inspections you want to be performed. And you will note that there is only one back and forth in the negotiations for the inspection. The home inspection addendum gives you the additional choices of what you want to do from repairs, to price reductions, or doing nothing at all.
Once the Inspection is Agreed Upon
Once the home inspection is negotiated and agreed upon you cannot come back later and ask for more stuff to get fixed unless it’s called by the appraiser or if they damage the home on move out. Be sure as you are completing this that you understand that you have to be okay with how the house will be. If you are not, the home inspection is the time to step out of the contract.
Who typically pays for the inspection?
One thing to note traditionally all inspections are at the buyer’s expense.