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Five Steps to Buying a Home in Lexington and Central Kentucky in 2020, part three

The Fifth Step to Buying a Home in Central Kentucky.

This is the third blog post I have written on Buying a Home in Lexington and Central Kentucky in 2020. This post is going to discuss in depth the process of having an inspection on the home you buy.  Other related blog posts.

The first three steps in buying a home.part one

The fourth step in  buying a home. part 2

Getting a purchase contract accepted on the home you want is the first step to buying a home.  However, in many ways the inspection process can be more time consuming and sometimes even more important than the purchase contract.

The purhase contract gives you three options for an inspection.

Would you buy this home?

The first option the buyer agrees to purchase the home no matter what an inspection should show.  . This does not mean you cannot have an inspection but you are agreeing to purchase the home without objection. This may be good if you have cash and the home is priced well below market value. However even then you are taking risks that I do not think are wise.

The second option states that “the buyer may have the property inspected and may declare the contract null and void, with the earnest money returned to the buyer, by notifiying the seller, or seller’s agent in writing within a certain number of days from the contract acceptance.”  My suggestion is to have the inspection done in no more than 14 days.  The seller is going to want to have the results as soon as possible.  This option is often the most favored by the seller.

Option 3 of the inspection

Option 3 is the one most commonly used.

The third option is on the top of page three of the offer to purchase.

This is the option that allows the buyer to have all the inspections they wish and then negotiate to have certain items repaired. The buyer again must have this inspection done within a certain time frame.  If the buyer and seller cannot come to agreement on the items to be repaired then the buyer has the option to void the contract or to accept the home as is.

 

This home looks great. Could it need an inspection? YES it does!  

There are some very important things that the buyer needs to understand that are specifically state in the purchase offer.  They are:

1. The buyer cannot require the seller to bring the property up to the building codes.

So, if you buy an older home that did not have grounded electric plugs you cannot ask that to be upgraded. If the home was built before Ground Fault Interrupters you cannot request they be installed.

2. The buyer understands and agrees that the inspector’s report is not a repair list.

The seller has to agree to make repairs requested by the buyer.  So it is necessary to be prudent about what you ask to be repaired.

3. The buyer cannot ask the seller to repair items that are disclosed on the Seller’s Disclosure Condition.

A very careful reading of the seller’s disclosure is most important.  If there are things the buyer wants repaired that are disclosed they need to be taken care of during the bargaining for the purchase of the home.  For instance if there are windows that the seal is broken and the buyer wants those repaired it must be written into the purchase offer.  The buyer cannot ask the seller to repair them after the inspection because the seller disclosed the needed repair in the disclosure.

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Paul Campbell, Real Estate Consultant
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