When you go under contract to buy a home, a purchase price has been agreed upon. In most contracts, you have the right to inspect the property and get an appraisal within a set period of time. Both of these, if not acceptable, can create the possibility of cancelling the contract. If there are significant, negative issues with the property or the appraisal is below the agreed upon price, then the buyer has the right to cancel the contract and move on. Most standard real estate contracts have inspection, appraisal and financing contingencies.
Regarding the inspection, it is important to have a competent and thorough professional inspect the home, even a newly constructed one. Home inspectors are trained to evaluate the condition of the property and provide a detailed report including photos. Examples of common items on the inspection would be electrical, plumbing, air conditioning/heat (HVAC), roof and more. Once the inspection is complete, you as the buyer may have the right to:
Ask the seller to correct issues found by the inspector
Ask for a reduction in the price or credit at closing to provide funds to correct the problems
Decide to cancel the contract and may have your earnest money deposit refunded
When making these decisions, it is important to consider any insurance issues that may arise. For example, if the roof is old and leaking, there is a good chance that in order to obtain insurance, plans for a new roof will need to be made either prior to or within 30 days from closing. This would require strong negotiating and the terms of that negotiation would need to be agreed upon by both buyer and seller in a timely manner so that insurance can be bound and a mortgage can be processed.
For any questions regarding contracts, inspections, appraisals and more, please contact our office at 813.636.0700.
Diana Kurtz, Director of Training & Development As a Licensed Real Estate Broker, Seniors Real Estate Specialist (SRES) and Graduate of the REALTOR Institute (GRI), Diana commits to helping agents every step of the way. She knows that continuous learning and development are important components to an agent’s success. With her emphasis on education, development and compliance, she will plan, organize and direct a wide range of training activities as well as one-on-one mentoring to provide the greatest chance of success. She’s fluent in Spanish and passionate about education, networking and volunteering, and serves on numerous committees. Being active in both the local and state Real Estate Boards enables her to provide agents with best practices from the industry as well as the best training currently available.