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Who Should Pay? Buyer or Seller?

April 19, 2012 | Comments: 0 | Views: 147

You found a home and it appears to be everything you have been looking for....except...inspections reveal repairs or defects you were not anticipating...Who pays? seller or buyer? or should buyer just back out of the deal? The terms in your original purchase contract will dictate how you proceed after inspections.

Unless the seller specifically stated they would take responsibility for repairs you most likely will need to go back and renegotiate with seller on terms, seller to do repairs, buyer /seller to split the costs, credit back and/or reduce purchase price or quit contract.

In California, seller MUST disclose any and all known defects or repairs or issues with the home while in their possession. Often sellers are unaware of issues, in particular items found under the home etc. Hopefully, as the buyer you had a contingency clause in your contract that allowed for all inspections buyer deems necessary to be performed with buyers right to review, accept, quit and/or come back to negotiate on those findings.

In California, if a seller chooses not to do repairs and /or work with buyer on credits etc and house goes back on market, the seller must then disclose those recently found defects. In the majority of cases a buyer can renegotiate with the seller to either fix the defects found and/or to reduce the purchase price and in some cases provide credit back to the buyer. However a buyer cannot count on that.... Some sellers will cancel contract, may fix the issues and put back on market at a higher price and/or just disclose recently found defects and put back on market at same price.

Typically contracts are negotiable until buyer removes all of the contingencies. Buyer then asks why should I pay for inspections- why doesn't the seller pay for and provide them up front? Again, contract and terms are negotiable.... Did you ask for the seller to pay for the inspections? Sometimes a seller will sometimes they will not....or they may pay for termite inspection but not a physical inspection, roof inspection or other related inspections.

Frankly, a buyer should always hire someone they have chosen to protect their interests. While majority of sellers will use a licensed and ethical inspection service or contractor, we have seen a few cases where there has been some issues. The contingency periods are for the buyers investigation of the property. As a buyer those contingency periods should be used and maximized to the buyers best interest.

Remember older houses are going to have some issues for the most part. Just like with cars, things wear out. Weather can cause deterioration and damage to roof and siding. Even on new home constructions, buyer should pay for and have a licensed physical inspector or contractor go through the home to protect your investment.

Terry Osburn, Broker Associate, Listing and Selling real estate in the SF Bay Area since 1999. Your Greater Walnut Creek, Ca area and surrounding communities source for Realty Services include listing, selling, relocation and consulting. Whether thinking of selling or buying or both please contact me to discuss your particular real estate needs and options. My website is http://www.iSELLeastbayRealEstate.com For those seeking access to view available homes for sale please go to http://www.iSelleastbayRealEstate.Net Serving but not limited to the Greater Walnut Creek area and surrounding communities in Contra Costa County. Also serve in Alameda County, Berkeley, Oakland, Albany. In Solano county Benicia. Represent Seller or Buyer in Single Family Homes, Condos and Townhomes, Lots and Land, Mobile Homes, Short Sales and REO's.

Source: EzineArticles
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