Buyer’s buy homes with emotion. In order to institute a little logic into the equation, they hire a home inspector to advise them on the items that are not in normal working order. It does not include cosmetic or decorative items.
Last year our contracts in Oklahoma changed some of the verbiage, by removing a repair cap. Up until this change, a buyer would list a dollar amount that the seller agreed to repair up to at time of contract. Now there is no dollar amount. The contract leaves the buyer and seller to determine what they will repair or replace after inspection. This is sometimes called a second negotiation.
Since the elimination of the repair cap, I have advised my buyers that this is an “as is” contract. What you see is what you get. Now don’t be scared. We are still going to do inspections. We are going to see what is not functioning in the property and then we will ask the seller to make those repairs–these repairs might include roof, foundation, heat and air, electric, and plumbing. I do not believe the intension of the inspection was to have the seller repair maintenance items like chalking, fence latches and alike. In addition, I do not necessarily think that it is in the best interest of the buyer to ask the seller to repair every nickel and dime item on the inspection report, since the seller is not obligated to make any repairs.
On the other hand, the seller needs to disclose any known defects once they are learned to any and all buyers. If defects requiring major repair costs are learned such as a foundation concern or a roofing issue, the seller would be wise to remedy this issue. Buyers will either want large repairs corrected or a considerable adjustment in price to adjust for the defect.
Inspections are for the knowledge of the buyer as to what they are buying. There is no pass or fail. If buyer and seller cannot agree on the repairs requested, the contract will bust. The buyer will still have to pay the home inspector.
If you are considering buying or selling a home, my team would love to help you. Please contact me at 405-213-2992.