Home inspections and their role in the real estate transaction

By Merri Ann Simonson

Managing Broker

Coldwell Banker San Juan Islands Inc

1-800-451-9054 Office

360-317-8668 Cell

If you are a buyer or seller, I bet you thought just getting under contract was stressful for all parties but in reality, the home inspection and/or feasibility response and associated negotiations are often the more stressful event. Allowing a buyer to have a home inspection and hopefully a concurrent feasibility study is a very necessary part of the transaction.

Seller’s Disclosure form 17

As required by statue, the seller must provide a disclosure about the property. This is merely a disclosure, not a representation, guarantee or warranty. This disclosure should be given to your home inspector prior to their visit so they can focus on the seller’s comments about defects and repairs made. Your agent should automatically do this but as a buyer you should insure it happens.

Buyer’s Due Diligence

Washington is a buyer due diligent state, so basically, if the boilerplate language is used, the buyer gets a free ride to investigate whether the property is suitable or not. If it is the later, their deposit is refundable unless the contract is written differently.

In some of the near-by metropolitan markets, some buyers elect to waive their rights in order to attract the seller’s attention, but that is not the case on San Juan. In the long term, allowing this process will reduce the exposure to future disagreements about the condition of the home. The buyer needs the opportunity to research the property and condition of the improvements prior to closing. As a seller, if your buyer waives their rights to an inspection, be sure to obtain a copy of the waiver or a hold harmless agreement.

In most transactions, the buyer shall have anywhere from 10-90 days to process their home inspection contingency and feasibility study, with 15 days being the typical for a home purchase. The home inspection contingency addresses the condition of the improvements on the property. The feasibility study addresses the “what if-s” a buyer is considering; May I have a dog run, can I park an RV, what will the kitchen remodel cost, can I obtain a vacation rental permit, etc.

The inspections must be processed by the buyer or a person licensed under chapter 18.280 RCW. Reports are at buyer’s expense, ordered by them and performed by an inspector of their choice. If seller has already obtained a home inspection, the buyer should not rely upon it as there is no recourse against the inspector by a party not named in the report. The buyer can, however, hire that inspector for a new report in their name as it may save time.

The inspectors or contractors may not be invasive with their inspection without seller’s consent and without the agreement that buyer will restore to the pre-inspection condition.

Some buyers and their agents are of the opinion that it is best to just get the property under contract and then plan to be aggressive during the home inspection and feasibility period. Only time will tell with this approach, it can backfire. It is true that the seller may be emotionally attached to the transaction as it is the solution they are looking for, however; they also need to feel that the transaction is fair. It may be their plan to be aggressive as well and perhaps they are not attached to the outcome. These are just some of the uncertainties that surround the process. During the inspection process of a transaction, sometimes not everyone is happy and sometimes all parties are slightly unhappy. It can be a stressful time for all. On the other hand, I have had the process run very smooth; it is a case by case situation. The goal is for everyone to be happy.

Just because you are under contract, it is still a long way until closing with numerous contingencies that must be satisfied along the way. No one should be packing until the contract is non-contingent and preferably not until you have signed your closing documents and the monies are on deposit with escrow.

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