After you receive your executed contract (both parties have signed) your inspection due diligence time period begins. I usually put 10 days in the contract to compete that. You must know that something always comes up in the inspection report. By asking the seller to fix everything on the inspection report can KILL THE DEAL! A lot of home buyers are under the impression that whatever comes up in the inspection, the seller has to fix. That is incorrect. Georgia is a buyer beware state. Meaning, it is the buyers responsibility to do their due diligence by inspecting the property before they buy it. Not the sellers. The inspection is for the buyer to make a conscious decision on if they want to move forward or not. Also, to see if the issues are problems they can afford to get fixed, or can deal with until they can afford to fix it. It protects you from unknowingly buying a lemon. You can ALWAYS ask the seller to fix some of the issues. That is where negotiations come in. Incorrect electrical wiring, a plumbing issue, mold, or termites are examples of issues you should ask the seller to fix. Also, with an FHA loan (loan that most people get) issues like the ones just mentioned, will cause you to not be approved. FHA will not back a loan on any house with those types of problems. So it is not just you they will not approve, but anyone applying for an FHA loan. Because of that, the seller will most likely get those types of issues fixed because no buyer will be able to approved for a loan to buy their home. BUT that still doesn't mean they have to fix anything. They can change their mind about selling it and rent it out. They can also just say no and wait for a conventional loan buyer. But if they did, they would have to be willing to let their house sit on the market for a while. That is because they will be kicking out the majority of home buyers. Buyers with a Conventional loan put down 20% when a person with an FHA loan only has to put down 3.5%. Because of that, most sellers want to get those types of problems fixed, but sometimes they cannot afford it. That is when a good real estate agent (ME...lol) can have certain things done in their client's favor and find a way to offset the cost because of the repair(s).
You should order the inspection the same day that you get the executed contract back. You want to have enough time for the inspection and negotiations within your due diligence period. You don't want to prolong it. That is the time that you have to walk away from the deal without penalty, and get your earnest money back if negotiations fall through.
First, make sure that the inspector is certified. A good home inspector should not make you wait a few days for the final inspection report. Remember that you are under a due diligence period. A slow inspector can cause you to loose time for negotiations. You need the inspection report when you go to the seller with the repair(s) you would like to have fixed. The cost of an inspection is normally between $300-$400 for most homes, but it can go up for bigger homes.
If you need a good inspector, I have one that finishes the inspection report before you leave the house. Plus he is awesome and honest! Send me a message if you would like his contact information.
Home Buyer's Guide Part 1
March 9, 2014
GA Dream Down Payment Assistance Program....Get $5,000-$7,500!!!