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#377203 - 05/27/11 09:27 PM Can my sales price be based on inspection?
BlueJay Offline
Junior Member

Registered: 05/27/11
Posts: 1
Loc: US
My house is FSBO, and I am a little confused on the inspection process.

I understand that a buyer wants certain things working and good in the house, but as a seller I don't want surprises that cost me money.

So, for example, if I accept an offer for $150,000 what happens if the inspector says I need to replace a couple things that cost me $500 or $1000. What if it's $3000? Then it's like I agreed to sell for $147,000 because I don't think a buyer would like me to cancel and say, sorry I need $153,000 or the deal is off. In other words, I was hoping there is a way I can guarantee myself a certain minimum pocketable bottom line.

I know one way around this is to hire the inspector myself in advance. However, will the bank accept this inspection to loan the money to the buyer, or will the buyer need to pay for another one? If we are both paying for one, it does not make sense to me. And besides, my inspector could miss things, leaving me with surprises.

I am wondering if the buyer would get the inspection done before we agree on the price, or built in to the contract. The buyer knows of most defects and is willing to repair them himself and take the property AS-IS for the low price. I am just unsure if the inspector will point out anything new that's costly or required for FHA loans, and I don't want to give him a low price and have to get even less.

Thanks for any help.

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#377233 - 05/28/11 03:56 AM Re: Can my sales price be based on inspection? [Re: BlueJay]
Artiste Offline
Major Contributor

Registered: 06/12/06
Posts: 2367
Loc: Arizona Bay
These issues would be managed during the buyer's 17 day contingency period and negotiated.
_________________________
Let's take back the real estate between our ears and get green like a sonofa$%^&*

NAFTA is over!!
(if you want it)


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#377258 - 05/28/11 03:28 PM Re: Can my sales price be based on inspection? [Re: BlueJay]
Inspectorjeff Offline
Member

Registered: 08/31/06
Posts: 80
Loc: Santa Clarita, CA
The inspection and the "sales price" are not necessarily related. The market value of your residence "is what it is." If your home is in perfect condition (which most sellers believe to be the case), you should be able to get the highest possible sales price.

The inspection will likely reveal the "actual" condition of the home. In which case, you may need to adjust your selling price, or have items from the inspection report repaired/corrected.

"AS-IS" is a subjective term. Your idea of "as-is" may not take into account a host of issues that could potentially be discovered during the inspection process.

Personally, I believe you should seriously consider finding a qualified real estate agent to assist you. In most cases, even after paying commissions, you will receive the highest possible sales price when you've utilized the services of a qualified representative.

Generally, banks do not require an inspection.
_________________________
If your inspector is not using thermal imaging, you're not getting the whole picture. �

Jeff Pope
JPI Home Inspection Service
Santa Clarita CA
(661) 212-0738
http://www.MyInspector.net

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#377269 - 05/28/11 05:22 PM Re: Can my sales price be based on inspection? [Re: Inspectorjeff]
droll Offline
Member

Registered: 07/18/09
Posts: 191
Loc: Shreveport, LA.
This is addressed differently state to state, because the wording in each states buy-sell agreements are different. Our old form states that the seller is responsible for all mechanical systems be in normal working order for their age. Our newest forms have no pre-arranged commitment for the seller to pay for any repairs other than what was mentioned in the offer.

Why would any buyer pay for an inspection without knowing that you would even accept his offer? The best overall agreement in most cases would be get an accepted contract subject to a satisfactory home inspection. The buyer has the right to know exactly what he is buying.

If the buyer wants reasonable (very subjective word) repairs or re-negotiate the contract based on the inspection results, how has that hurt you? You have the opportunity at this point to renegotiate the contract based on the material facts of the property. The buyer has been the only party that has risked real money, spent on the inspection.

You need to find a real estate agent to help you with this in your local market. Selling a home successfully is more that common sense and a little paperwork. There could be a huge liability for mistakes made in the process.

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#377275 - 05/28/11 06:56 PM Re: Can my sales price be based on inspection? [Re: BlueJay]
Vermont Offline
Major Contributor

Registered: 04/12/08
Posts: 7455
Loc: Vermont's North-East Kingdom
Originally Posted By: BlueJay
". . . I am a little confused on the inspection process. . ."

Depending upon what State or Commonwealth you're in, the "process" can be what you and some future Buyer agree it is.

Without an Agent, I'd discuss your desires with an Attorney before going further, and preserve your options.
_________________________
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont
Where We're Always Striving To Put Together "THE FAIR DEAL"

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#377278 - 05/28/11 07:08 PM Re: Can my sales price be based on inspection? [Re: BlueJay]
JackREO Offline
Veteran Member

Registered: 09/02/08
Posts: 849
Loc: Massachusetts
As you can see by all the answers here, this is as simple or as complex as the parties make it. You're going into what could be the largest financial transaction in you life with no professional assistance. Kind of like representing yourself in court with no attorney. There's a reason FSBOs are attractive to buyer's. Perhaps the buyer believes they're sold by inexperienced folks and thus the buyers believe they have an easy target.
The largest financial institutions in the world, with tremendous legal resources, experienced negotiators, and decades of experience hire real estate agents to represent them. Ever wonder why?

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#403754 - 03/22/12 04:00 AM Re: Can my sales price be based on inspection? [Re: BlueJay]
bmc Offline
Member

Registered: 05/20/07
Posts: 15
Loc: USA
From your questions and concerns, it looks like you need help from real estate professionals.

As a seller, you should have a pretty good idea about the market price range and the conditions of your house. If you think the contract price is already at the market low end, you can always negotiate with the buyer on surprises from home inspection and reduce/reject any price reduction from the buyer.
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