A buyer may cancel a transaction after a home inspection! It may be tempting to blame overzealous a home inspector when a transaction falls apart after the inspection of some houses.
But there’s more to that situation than meets the eye.
Estate professionals know there are many ways that deals can fall apart, from credit, financing, appraisals to plain cold feet. But certainly, one of the more common deal killers is the home inspection.
But it doesn’t have to be!
Houses and Home Inspectors Do Not Kill Deals
Four home inspection situations lead to a cancelled transaction. Two things which are not on this list are the house and the home inspector. Some estate agents blame the home or the home inspector. However, let’s consider what happens in these situations.
Problems are caused when the home inspection report significantly alters the buyer’s expectations about what they thought they were buying. The client may say, “Gee, I thought I was buying a well-maintained home, but now that we have looked closely, I see the house requires a lot more maintenance than we expected”.
Therefore, the cancellation has everything to do with the client’s expectations coming into the inspection! Agents may wish that the home inspector had been less forthcoming about the condition of the house but this is not the solution! The solution to this problem is buyers having more realistic expectations before they sign the contract. My website and blog attempt to teach people skills that will help them look at houses and evaluate risk so they are more prepared to make an offer on the right house.
Here are the top four reasons buyers cancel a deal after the inspection.
1) Unprepared buyers
There are no classes in university or high school to teach people how houses work or where the risk lies in a residential building. Even professional estate agents have little or no training to help them understand how to look at houses and identify issues. A new generation of homebuyers, many of whom who did not grow up working on their houses with their parents, compounds this problem.
Imagine what could go wrong with your home purchase! Houses are made up of hundreds of different parts and materials from a nail to a roof tile and much, much more!
New or used, the home purchase will most likely be one of the biggest investments you’ll ever make! Therefore, with this type of investment, it only makes sense to have a professional home inspection done beforehand.
If you’re thinking, “Why do I need to spend the time and money on a home inspection?”
My question to you is “Why take any unnecessary chances with your hard-earned money?
Protecting your home purchase
An inspection and report will give you a clear, concise picture of the important components and systems of the home. Therefore, you can make an informed decision on the purchase of the home. In doing so, you avoid buying a new home only to spend thousands of rand on unexpected or unforeseen problems.
My thorough, impartial inspection will let you identify any minor or major repairs or maintenance issues. Furthermore, the inspection report is a valuable tool in the bargaining stage to address any issues before finalising your home purchase.
Moreover, you will have a highly trained, experienced and dedicated professional on your side. My report will help you make the right decision with your property purchase.
Don’t make the mistake so many other home buyers are making over and over again!
Protect your investment by having a home inspection!
When you’re buying a home, you don’t want to skip the home inspection step. Home inspections are an important part of the home buying process. An inspection by an InterNACHI certified home inspector can prevent you from purchasing a home with serious issues such as mould, structural defects, faulty plumbing and more.
Firstly, you should insert a contingency in the “Offer To Purchase” which states that the sale is dependant on a satisfactory home inspection. In addition, you should also agree on an “Inspection Contingency Period” which will give you time to have a home inspection done. Furthermore, this period should be between four to seven days depending on how soon you can get an appointment with a home inspector.
Based on the results of a home inspection, the contingency will then give you the right to cancel the sales agreement. In addition, you can walk away from the transaction without recourse if you are unsatisfied with the seller’s response to a request for an inspection and inspection contingency.
You lose the right to have the home inspected and to negotiate over defects found in a home once the contingency period ends.
What is a home inspection?
As a home buyer, it is your right to have your future home inspected for potential faults and defects. Therefore, don’t skip this step!
The Bill was supposed to finally provide buyers (consumers) more protection in the secondary housing market.
However, it appears the Minister of Human Settlements and his staff and the National Assembly totally missed the point!
Here is that portion of the Bill:
Mandatory disclosure form
A property practitioner –
may not accept a mandate unless the seller or lessor of the property has provided him or her with a fully completed and signed mandatory disclosure in the prescribed form; and
must provide a copy of the completed mandatory disclosure form to a prospective purchaser or lessee who intends to make an offer for the purchase or lease of a property.
The completed mandatory disclosure form signed by all relevant parties must be attached to any agreement for the sale or lease of a property and forms an integral part of that agreement, but if such a disclosure form was not completed, signed or attached, the agreement must be interpreted as if no defects or deficiencies of the property were disclosed to the purchaser.
A property practitioner who fails to comply with subsection (1) may be held liable by an affected consumer.
Nothing in this section prevents the Authority from taking action against a property practitioner or imposing an appropriate sanction.
Nothing in this section prevents a consumer, for his or her own account, from undertaking a private property inspection to confirm the state of the property before finalising the transaction.
This is the protection this Bill offers to buyers (consumers) who buy properties from sellers.