Buyers typically have 10 days after mutual acceptance to complete the inspection process. Even if the buyer has requested repairs be done, it can be a smart move to counter the repair list and offer the buyer a cash credit. It’s tempting to ask a seller to repair a tile that’s cracked or add a fresh coat of paint to a fence, but do so at your own risk. Sellers: A buyers’ right to request secondary inspections is waived after they send a repair request. The seller is mad at the real estate agent and buyer wanting to know why they are still asking for repairs. Office | 206-448-9600 If Seller checks the box: “Seller agrees to all of Buyer’s Requests,” then the Buyer should sign & date at the bottom of the RR and the process is complete. If the seller does not want to receive the inspection report, nothing in Washington state law says that seller must be forced to receive it. Form RRRR, Seller's Response and Buyers Reply to Request for Repair. Sometimes the buyer submits a list of things to be repaired, and other times, buyers ask for a cash credit in lieu of repairs. Many real estate experts would argue that sellers can be damaged by a buyer’s delivery of an inspection report when it does not represent a seller’s home in a way that he/she would otherwise wish to have it described. Hi BP Folks! My husband and I are in contract on an investment property as buyers, completed the inspection, and our agent submitted our repair requests timely. A buyer can attempt to continue to negotiate for inspection-related repairs during his/her 3-day response period but sellers are not obligated to reply, and by taking this extra step buyers have essentially rejected the seller’s initial response for repairs. John L. Scott, Inc. Seattle Center Office The seller agrees believing that this is the only repair that the buyer wants. In fact, buyers can get out of a purchase and sale agreement for any cause – without explanation – if they have a signed home inspection contingency as part of the contract. That’s all that’s written! Seller's Response to Home Inspection Can Kill a Sale ... or counter the buyer's request for repairs or replacements based on the home inspection. Seattle, WA 98109, Phone | 206-468-2928 As the seller, you should make sure your listing agent does not allow the buyer’s contractor/uncle or neighbor/roofer to inspect the home; that’s against the law. Buyers waive the inspection contingency if they don’t meet mutually agreed deadlines, even if it’s not their fault. All information provided is deemed reliable but is not guaranteed and should be independently verified. Sellers: A buyers’ right to request secondary inspections is waived after they send a repair request. You can also get more well-thought-out offers since the buyers have a better idea of the condition of the home when they put in an offer (less change of additional repair or cash credit negotiations). 3  The Appraisal: What Sellers in Seattle/King County Need to Know, John L. Scott, Inc. Seattle Center Office, 100 4th Ave. North, Ste. The home inspection (including checking septic systems for rural locales) takes place at a time convenient to all parties. Buyer performs inspections and reviews disclosures as part of buyer's. Ten days covers the inspection, reading and reacting to the report, and submitting through his/her broker a request for repairs (if any) or a request for additional inspections (for more on that aspect, please read on for a key paragraph with key points). ... CA asked for a the items noted in the home inspection to be corrected by the seller. When you find a home you want, it is important to pick your battles when it comes to repairs requested from a home inspection. The BINSR is an addendum to the Arizona Association of Realtors Residential Purchase Contract that allows, in an organized manner, the Buyer to request repairs and the Seller to respond. Buyer learns of items in the home that are not up to current code, are not working and/or deferred maintenance. This decision is typically wise because it can be costly for sellers to begin marketing again and find a new buyer. A portion of the seller's proceeds can be held in trust after closing and used to pay for repairs. The timing is critical. Request repairs: The buyer may request that the seller complete a list of requested repairs, as a condition of the sale moving forward. A seller may respond by agreeing to do some or all of these repairs based upon reports that they have obtained. It becomes very difficult from a  moral perspective for the buyer to make repair requests because the buyer knew the condition of the property prior to writing the offer. The inspector is hired by the buyer and licensed in Washington state, and no one else – except for the buyer – has the authority to inspect the property. 100 4th Ave. North, Ste. ___Seller responds to Buyer’s request on the attached form RRRR. All properties are subject to prior sale or withdrawal. However, they can pull out of the deal before the deadline, citing the inability to complete the requested repairs. While it would certainly be nice for the seller to fix every little home inspection issue before you put your money down, there are only so many repairs most sellers are willing to commit to – especially in a seller’s market. RRRR #1 [Seller Response and Buyer Reply to Request for Repair] Seller Response to Buyer Requests. When submitting a request for repairs, the buyer sometimes asks for particular contractors to do specific work. The seller may respond by agreeing to complete three items, pay a concession (typically cash at closing) for two more issues and ignore the others. Often, those sellers believe the report was delivered to him/her for the sole purpose of applying pressure to the demands for repairs made by the buyer who delivered the report. That means the cost of any repairs were presumably reflected in the offer price. The seller then has five days to respond (no response indicates seller’s refusal to make repairs). If the buyer rejects the request, he/she can find another home to buy and seller can find another buyer. Sure, a seller can agree to the second response or, more likely, ignore it and either complete the agreement without making repairs or the seller is lining up a potential backup buyer (one that likely has fewer – if any – inspection-related demands). When you offer cash, that means you don't have to deal with the hassle and stress of dealing with the repair process prior to closing. The objective is to uncover defects in the home that may require a response from the seller – or, conversely, confirm there’s nothing serious and give buyers peace of mind. Expect your request for any cosmetic or general maintenance request to be met with an unfavorable response from the seller. The timeline can be extended, for example, should something more complex – like a sewer-line inspection – requires hiring a contractor to examine pipe from home to street. Plus, now that the seller is aware of issues, they may have to disclose those issues to the next buyer per applicable disclosure laws. To be sure, when buyers terminate an agreement it is typically after they learn of an issue with the home following the inspection – not to aggravate a seller. Should the seller accept a copy of the inspection report during this process? If the seller agrees to repairs, the inspection period is over and a major walk-away contingency for the buyer is removed. ... Form RRRR, Seller's Response and Buyers Reply to Request for Repair. The buyer then comes back three days later and asks for HVAC repairs. In all cases, it is up to the buyer’s broker to share inspection-related details with the client’s mortgage lender as it may impact the loan application. There is no protracted negotiation. Final Thoughts On Your Buyers Request For Home Inspection Repairs Obviously there is no right or wrong way to handle your home buyers request for home inspection repairs. Common home repairs to request (but you may not get) Here are some common items on buyers' home repair lists, although sellers may or may not be willing to fix them: Seller agrees to all of the modifications or repairs in buyers request In a residential real estate transaction in Arizona, the Buyer and Seller use the Buyer’s Inspection Notice and Seller’s Response (BINSR) to request and negotiate repairs to the property. More often than not, sellers agree to some repairs. Managing broker is David Bezeau CalBRE# 01331414.Home Bay Technologies Inc. and its subsidiaries fully support the principles of the Fair Housing Act and the Equal Opportunity Act. Sellers may also be more reluctant to make repairs in a hot market, thinking another buyer will come along if the present deal falls apart. SELLER RESPONSE AND BUYER REPLY TO REQUEST FOR REPAIR No. And the next buyer who comes along may have the same concerns, but in … Email | willspringer@johnlscott.com. Yet, that is the manner in which some buyers use the inspection report, taking advantage of the seller’s good-faith allowance for access to his/her home. A contract for the purchase of a home is just that - a contract. The buyer’s expectation is that these repairs are going to be performed by the close of escrow, by qualified professionals, and with all governmental approvals. Springer advises sellers to wait to make that offer until after they get the list from the inspector, because they may be able to beg off certain fixes in exchange for items such as the washer … Forms are hard copy only and not provided digitally. The database information herein is provided from the Northwest Multiple Listing Service (NWMLS). The amount is usually computed at 1.5 times the estimated cost. The market conditions play a big role in what buyers will ask a seller to repair or replace. A home warranty (one year or two year) can also be a great option to help assuage buyer concerns. By providing buyers with disclosures and your inspection report before they even put in an offer, you have the potential to increase your chances of a smooth and successful transaction with minimal surprises or unexpected turns. If you buy a home in a solid sellers' market, you probably can't request too much from your sellers. Just when they thought the negotiation portion of the home-selling process was complete, sellers are faced with the potential for more negotiation. At this point, the home seller has 4 options in response to buyers request for repairs or modifications. Contract specified that seller had 2 days to respond (yesterday was the deadline). Buyer submits to Seller a list of repair items via a request for repair form or amendment to the purchase contract. [ See first tuesday Form 269 ] The request for repairs: Seller's agent said response would be in by end of day yesterday, but nothing as of 8pm. Buyers then have three days to reply to the seller’s counteroffer. The broker has a duty of care to ensure the inspection takes place without issue. Quantity. The seller has three days from the time of receipt to respond. In fact, listing agents can incorporate language in the counteroffer that establishes a barrier between the seller and the buyer’s inspection report. All sales on single forms are final. Armed with very little time to consider the Seller s response, the Purchaser will need to determine a course of action rashly, without ample time to consider the repercussions (losing the house vs. costs of repairs, time constraints, unexpected loss, etc.) _____ (Or other Corrective Action) (C.A.R. Yes, this part of the inspection process can spark frustration – or even anger – on the part of the seller, but there is generally little that he/she can do without having completed a seller-favorable counteroffer earlier in the purchase/sale phase that can include a demand for non-refundable earnest money should buyers fail to meet certain terms (something we see in a seller’s market). A seller credit to the buyer goes towards buyer's costs at closing. Now that the home buyers request (s) for repairs or modifications has been submitted to the home seller, it’s their turn to respond. Don’t get caught up in the paint color of rooms, landscaping, flooring that you don’t like, etc. a seller completing the repair vs a licensed professional). Sellers typically get a week or two to hire contractors or do the work on his/her own, depending on how the buyer and his/her broker wrote the request for repairs. If material defects are found, the seller is obligated to make repairs up to a given amount, say x percent of the purchase price or a certain dollar amount. first tuesday’s Property Inspection – Buyer’s Request for Repairs is used by the buyer’s agent when the buyer makes a written demand on the seller to correct or eliminate the defects. A seller has a choice of three responses. If the home seller agreed to repair something before the sale but did not make that repair, their failure to honor the details of the contract is called breach of contract. Rejecting the seller’s response equates to the buyer’s termination of the purchase and sale agreement. Buyers can get very nervous when faced with major repairs and the transaction may fall apart if the buyers feel there may be other issues if the maintenance isn’t handled by the seller. The seller gives the buyer a lump sum at closing to cover the cost of repairs, which the buyer agrees to carry out. Buyer sends an explicit message: “Fix these things or I'm canceling the contract.”, The seller agrees to the fix-it list, counters it or rejects it.If the buyer doesn't like the answer from the seller, they can cancel the contract and receive an. If I’m your listing agent, the answer is “Absolutely not!” Once a complete report is delivered to the seller, he/she has a legal obligation to attach the documents to the Seller Disclosure Statement for any future buyers to see. The sellers failed to respond through their agent. They don’t even have to conduct an inspection if they change their mind about buying the home. They agree to complete the negotiated repairs no less than three days from the closing date. You can: Offer to handle all the repairs. For example, if an inspector notes a leaky roof, a wise seller would know that all buyers are going to want the roof fixed and can have that work done. Both sides can also agree to do a “hold back;” similar to monetary concessions, escrow holds about 1.5x (times) the repair estimate, with the work completed after buyer moves in and seller is typically responsible for payment (not the best position to be in for sellers, who may be asked to pay even more if a major issue is discovered after the start of repairs). Let's take a look at how the process works. Step 29 – If applicable, complete the Seller Response and Buyer Reply to Request for Repair (form RRRR) – aka the seller's response to buyer's Request for Repair (RR). Buyers can either accept or reject the seller response. Ask for a credit: The buyer may request a credit (also called a concession), in an amount that’s enough to cover the repairs. Agrees to buyer’s repairs (or monetary concessions, paid in advance and based on a contractor’s estimate); Does not respond (same as seller rejecting the request), or; Makes a counteroffer, seeking compromise. It is legally binding on the home seller who agreed to make the repair. In the state of California, any and all services that require being a licensed broker in California are performed by HomeBay Broker CA, Inc., CalBRE #01976154. The licensed inspector, buyer’s broker and his/her client should all be present for the inspection – but not the seller. Here’s the key paragraph with my key points: Buyers can typically receive an additional five days to complete secondary inspections after the initial 10-day period – to check on special issues such as pests in the walls, cracks in the chimney or potential issues with the roof. If the seller accepts a contract from a buyer with an FHA or VA loan, any items called out by the appraiser must be remedied to complete the transaction. You have more negotiation power with these fixes because you're close to closing and … The BINSR is an addendum to the Arizona Association of Realtors Residential Purchase Contract that allows, in an organized manner, the Buyer to request repairs and the Seller to respond. Sellers typically get a week or two to hire contractors or do the work on his/her own, depending on how the buyer and his/her broker wrote the request for repairs. In addition, the repair list dollar amount is usually relatively small in the scheme of the total transaction. Sellers concerned about potentially excessive repair costs can contractually negotiate maximum amounts and have the buyer cover costs over the specified limit. From a seller's perspective, a request for cash credit is usually preferred to making the repairs as long as the amount requested is reasonable. In other words, buyers are using the home inspection contingency to help make a final determination on whether to buy the property. If both buyer and seller want to work together, the seller can offer to make repairs or give a repair credit. On the other hand, there are some sellers that want to repair everything and sell their property for top dollar, in top condition. You may need to think about repair amendments during the course of buying a home, typically during the option period and after your inspection.Your agent will prepare your repair amendments for you, but as a buyer, it pays to understand how to write an effective repair amendment as the language used in them can have serious effects down the road. In most states, the offer to purchase real estate says the purchase is “as is.” Nonetheless, offers also typically allow for buyers to inspect the property, review reports and seller's disclosures and cancel the agreement if the buyers are not completely satisfied with what they find. They can also sell the home "as is" and disclose the issues with the home. As it states in the bulleted item above, no seller is obligated to make repairs to the home. For example, some sellers are incapable of making repairs and others just do not want to make them. Note that it's not uncommon to provide a list of repairs on a separate attachment to the RR form if space is limited (simply check the box to indicate a list is attached, and cross reference the date on the list). Sellers don’t have to agree to any repair requests. So, let’s assume sellers grant buyers a privilege to inspect the home before completing the purchase. Note that a seller's credit is rarely used for minor repairs which could be done before closing. As such, you may have a few different options. This is the one and only reply period for buyers. Buyers have the right to purchase a home where the seller hasn’t lied about its condition. NWMLS data may not be reproduced or redistributed and is only for people viewing this site. In a hot sellers market where homes are getting multiple offers days after going on the market the chances of a buyer asking for a lot of repairs are slim, knowing the seller … A cash credit in lieu of repair can also eliminate any concerns/disputes regarding the quality/craftsmanship of the repair (i.e. It’s also important to think about the quality and aesthetics of the repairs you’re requesting. Form RRRR, Revised 12/18) RESPONSE AND REPLY TO REQUEST FOR REPAIR (RRRR PAGE 1 OF 1) RRRR REVISED 12/18 (PAGE 1 OF 1) Published and Distributed by: REAL ESTATE BUSINESS SERVICES, INC. a subsidiary of the California Association of REALTORS® No warranties or representations are made of any kind. What Happens When You Get a Request for Repairs. By contrast, if an inspector notes that a water heater is nearing the end of its useful life, the seller can simply inform potential buyers to factor this eventual water heater replacement into their offer. Buyer and seller agree on an offer price & terms. “Most real estate agents recommend buyers overlook cosmetic repairs that they are able to afford fixing after the sale,” explains John Lazenby, president of … Other times, a seller credit is packaged in with a higher sale price, so the money becomes part of the mortgage, allowing buyers more flexibility to pay for repairs. Also, it’s up to the buyer to determine whether he/she wants to purchase the home considering its condition. 155 Sometimes the buyer submits a list of things to be repaired, and other times, buyers ask for a cash credit in lieu of repairs. This process can run any length of time as long as all parties agree and provide signatures. Listing data last updated 2020-12-10T07:44:24Z. He/she: What if the buyer wants all items identified in the inspection report to be addressed? Now that you understand the request for repair process, you know how to do your homework ahead of time, go into your home sale confidently and be prepared for all potential outcomes. Having inspections done in advance also allows the seller to repair anything that needs fixing before they go into escrow. When you receive a list of repair requests, you have a few options. From a seller's perspective, a request for cash credit is usually preferred to making the repairs as long as the amount requested is reasonable. Seattle, WA 98109, Responding to Requests for Repairs on Your Home, there are some sellers that want to repair everything. 155 This post will explain what your options are when buyers come asking for fixes. Perhaps they have “moved on” and are thinking about their next home. As the seller, you can demand that inspectors are bonded although it is not required by the state. In fact, if it’s a seller’s market and there are lots of buyers vying for the property, they may reject them altogether. Once your buyers get a chance to review the report, they’ll send you a request for repairs. It's smart to complete your seller's disclosure packet and to get your own inspection done before you list to help expedite your sale. A buyers’ right to request secondary inspections is waived after they send a repair request. Once a buyer counters a seller’s offer for repairs, the seller’s original reply becomes void. The seller can respond to the Request for Repair with the Seller Response and Buyer Reply to Request for Repair (form RRRR). $3.00. The buyers request the sellers to make the following repairs… That’s it! Please note: that the seller does not have to agree to the buyer's RR, if desired, as the sale is … In that period, the buyer cannot change his/her request. We've improved the traditional real estate model with modern technology to cut costs, not quality. No response from buyers is the same as acceptance to the seller’s reply. They should request one set of repairs to sellers after ALL inspections are completed. [NOTE: We incorrectly stated 1.5% of the repair estimate in earlier versions of this article.]. If you take this route, the “as is” language in the offer has more teeth. Add to Cart. Before the 10th day elapses, notice of any defects that the buyer wishes the seller to correct must be provided. The seller prepays a contractor to do the work. Let’s be clear, though, that sellers never grant permission to inspect their home for the purpose of empowering the buyer and applying pressure on owners to accept demands from that buyer, such as seeking a price reduction when an inspection identifies an issue. Focus on asking for repairs that any reasonable buyer would request. So, if I were the Seller, I’d sign off in a heart-beat, because all I’m doing is acknowledging that the buyer had a desire for certain repairs. 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