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Back in the day…the only inspections that the buyers got was the ‘termite’ inspection. That was after the buyers had an accepted offer. Nowadays it’s called the ‘pest’ inspection. There were no home/property inspections. There were lots of surprises for a new owner.
During the financial fiasco (2008 – 2011) the buyers paid for the inspections, because so many of the sellers were facing short sales or foreclosures. Those buyers were the ones who had the $$$.
Today, in a market like this (CA, N.CA, SF, SF Bay Area, East Bay, Alameda, and beyond), almost all of the sellers get both pest and property inspections BEFORE the property goes on the market. Not that they’re interested in doing the work upfront, (besides the cosmetic stuff), but they want solid offers from solid buyers.
Today all of the disclosures get filled out by the sellers before the buyers make offers. Back in the day…everybody waited until after there was an accepted offer, and then the haggling began between buyer and seller.
BOM (back on market) was the mantra of the day, back then. BOM today, is not heard of too often these days.
What happens when a buyer needs to get inspections today because a seller didn’t think they needed to get, let’s say, a home inspection? That is one more contingency that the buyer will include her contract.
Contingencies allow buyers to back out of a contract: inspections, preliminary title reports, disclosures, appraisal, financing, sale contingencies (needing to sell a property before buying another). They all add up to DOM (days on market) for the seller, which is not good.
This happened to my buyers recently. The seller got a pest inspection, but when I asked for the disclosures/reports, there was no property inspection. and part of the Homeowner Association documents were missing. A double whammy.
Upshot…the seller and the agent thought ‘everything looked okay.’ Not so much. Just because the walls don’t have holes in them, doesn’t mean that nothing is wrong. My clients were able to get about a 15K price reduction based on getting their own property inspection, from a very reputable company.
And when this market cools down, (and it will sometime, someday) I think we will see the seller continue to get as many inspections as necessary, to make the buyers feel good about making any offer. IMHO.
Alameda Real Estate this Week
Alameda Real Estate Awards this Week
Just one….The Grand Dame you may have seen this getting made over, during the last two years.
Warriors rocked it!
Have a great weekend! Call, text, em me if you have market questions!