ESCROW SURVIVAL GUIDE - For Homebuyers In Northeast Los Angeles - Part FOUR: Physical Inspection
Even if you are quite comfortable with making all your own home renovations and repairs and repairs, we will urge you to obtain a professional physical inspection of any home you purchase.
Why? The home inspection will provide us with a complete, objective, unbiased examination of the home. The inspector may note issues you overlooked or the inspector might suggest alternative solutions to various concerns.
You do not need to take time off to attend a closing. Most mortgage loan originators will accommodate you with evening or weekend appointments. BUT you absolutely should plan to take the day off while the physical inspection takes place. You need to be present.
The inspector may note things and make suggestions that do not later fit in the scope of the written report. Bring a small digital camera, bring a small cassette tape recorder or a note pad. Be there, ask questions; if the inspector mentions a particular concern, ask the inspector to show you the components of the home that are involved and explain them to you.
Unless the parties to the transaction negotiate a different time contingency time period, the standard inspection contingency time period on the standard California real estate purchase contract is 17 days. Calendar days, not business days; and the clock starts ticking as soon at the final signature is placed on the final counter offer.
Try to schedule the physical inspection as soon as possible within the contingency time frame. Do not wait until the last day of the contingency period. If problems are found, the physical inspector may recommend further inspections by specialists: perhaps a chimney inspection, a sewer line video inspection or a geological report. Ideally, you want enough time remaining in the inspection period to obtain the additional inspections without asking for an extension.
As the buyer, once all the inspections are completed, and all the written reports have been received, you have some decisions to make.
You can accept the property in its present condition as disclosed by the physical inspection reports.
You can reject the property based on the physical inspection reports and cancel the sale under the contingency without penalty.
You can renegotiate with the seller to perform various repairs, credit you some amount based on the recommended repairs, or reduce the purchase.
Keep in mind that the inspection report is not a checklist of to-do items for the seller. The seller has no obligation to perform any of the repairs. The seller is free to reject any renegotiations. As the buyer, you are then equally free to cancel the transaction.
Also consider carefully whether you are comfortable having the seller make a specific repair, or would you rather have more control over how the repair work is done? If the latter, you will want to focus on credits or price concessions.
Remember the inspection contingency and the financing contingency run concurrently and simultaneously. Do NOT wait for a resolution of the inspection contingency to begin working on any requirements from your mortgage loan originator.
At Bob Taylor Properties, as your agents, we will guide you and consult with you throughout all negotiations. We will help you process and prioritize all the information. We will help you meet the contractual time periods and manage the deadlines.
