Discovery and home inspections
Pat and Kim, (who we met in Making the Offer and Pricing the Home) were under contract to buy a house they loved. By the time the counter offers were finished and everyone had come to an agreement, the two were very attached to the home and nervous about inspections. Bargaining had been tough and the Sellers insisted on an “As-Is” Addendum. Pat was unsure what that meant. Was there something wrong with the house or was there something the Sellers were trying to hide? Would they have to take the property just as it sat or might they lose their earnest money if there was a problem with the roof or the plumbing and they decided not to buy?
Could they ask for repairs, and would it risk the contract?
In the state of
Arizona the Residential Purchase Contract has strong protections written in for the Buyer. Most important here are those built around the Discovery period: when inspections and other investigations are performed. In Arizona, Buyers have the right to perform whatever detective work they need to determine that the house they are buying is what they want. The default period for this is the first 10 days after the contract has been accepted, but that period can be altered by agreement between Buyer and Seller. At the end of this time the Buyers can end the contract and walk away with their earnest money, rejecting the house for any material reason. Even if Sellers insist upon an As-Is Addendum in the original contract, that does not curtail this right. So, the Buyers have nothing to lose and should ask for any needed repairs.
Prior to making their offer I Provided Pat and Kim with a list of local inspectors. They went through the list and found several people they liked who offered a reasonable price and had references. (Kim also brought in a relative who was a licensed electrician). We had inspections for termites and pests, inspections of the roof, sewer connections, the HVAC, and even mold in addition to our regular Home Inspector. Naturally, many things were found, as happens in almost every house. They felt overwhelmed. On the one hand, they saw a beautiful home which they already imagined being theirs, on the other, an As-Is Addendum and a stack of reports on problems with that home.
Only the Buyers know what is important to them, but Pat and Kim were having a hard time sifting through the large list of problems. The Home Inspector, who used to be a nurse, smiled at them and said, “It’s just a matter of triage.” Pat and Kim were perplexed. “It’s just like an accident victim in the emergency room. You look over the patient and quickly pick out the major problems. If there aren’t any and it’s all minor cuts, scrapes and bruises, you are lucky because all houses have those. If there are Major issues, address those.” Kim and Pat stuck to the big stuff and submitted their list of requests. The Sellers addressed Pat and Kim’s requested repairs, even though there was an As-Is Addendum. The Sellers knew that if this contract fell apart and they had to deal with another inspection the same things would probably be asked of them.
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