Inspection Response Period Over....No Response from Seller Yet
Rental Property Investor · SF Bay Area, CA · Member since 2015 · 206 posts · 156 votes
Hi BP Folks! My husband and I are in contract on an investment property as buyers, completed the inspection, and our agent submitted our repair requests timely. Contract specified that seller had 2 days to respond (yesterday was the deadline). Seller's agent said response would be in by end of day yesterday, but nothing as of 8pm. Our agent texted the seller's agent again who responded by saying the response will be in by tomorrow (today) AM...Still nothing as of 10 am now.
My question is, is this normal to not abide by contract stipulations? If seller doesn't want to do any repairs, they just have to say so on the form. Any one ever experience this?
Background - Though we're offering pretty much market rate for this SFR, we don't want to lose this property, as it's in a great neighborhood and we foresee appreciation. The inspection did reveal some minor to major issues but due to the fact that our offer doesn't constitute a "deal," we want the seller to make the repairs or provide some credit.
I agree with the above feedback from everyone. You can either wait it out or withdraw your offer (in writing via email or letter) and get your EMD refunded back to you.
Also, for the future, if you are going to ask for a "price reduction" due to "unforeseen repairs" - it is best to use other terminology other than a "price reduction" or "repair requests" as some sellers may tend to entertain other offers instead, or decline your offer all together. I like to use the terminology "Forensic Cost to Cure Disclosures Addendum and Exhibits" and list your "Cost to Cure" exhibits on a state official addendum form.
Hopefully, you had a home inspection done by a certified home inspector, and you received a certified inspection report with color photos describing each defect. You can actually use the photos and copy some of the wording from the inspection report and use it on your "Forensic Cost to Cure Disclosures Addendum" which now becomes a "Fact of Record"
NOTE: Even though in most cases you will be making offers on “distressed” properties which are sold “As Is, Where Is, and With All Faults”, you will STILL have the right to an inspection of those properties to determine the exact condition of each property in its “As Is, Where Is, and With All Faults” situation. You should also have your agent email you to confirm your rights to have the inspections done and approve them – or get a refund of your deposit(s).
When you are ready to create your exhibits - I would keep each exhibit short… combining items so that you have 1 exhibit for each of these if applicable:
Hazardous Conditions,
Code Violations,
Unpermitted Improvement
Out of Code Improvements
Structural Defects (perhaps to include foundations, rot, joists, bearing walls, grade and draining, etc.)
Material Defects (perhaps to include electrical defects, plumbing, septic defects, heating and cooling defects, etc – things that are maybe not so “structural”, however they make the property uninhabitable unless items are repaired)
So… you are not making each picture into an exhibit… make a separate exhibit for each one of these categories above and combine pictures and bids to total the cost to cure for each category.
It is best to create AND FOCUS your exhibits on “unseen” items… items discovered only because you actually completed “intrusive inspections” THEN, bring in the “seen” items to make the exhibit longer… if you have time…
If you don’t have any unseen items, then you have to work with the best repairs you can find…
and also remember …
Your opening paragraph should go into an official state addendum form provided to you by your agent…
either you send an email to the agent to tell them the words … (best when the agent is working with you)
or you get the blank state addendum form, and put the words in (required when the agent is NOT working with you) ..
and your opening paragraph could be something like this:
"Due to hazardous Conditions, Code Violations, Unpermitted and Out of Code Improvement, and Structural Defects & Systemic Defects sited in the exhibits below with a total Cost to Cure of $32,700, the Purchase price of the property will be $38,000; the Cost to Cure is evidenced by “Exhibit #5 - Certified, Inspection #0826157538” and “Exhibit #6 - Contractor’ s bids, License #_____________”, and in the following exhibits [found in the attached file name {Forensic Cost to Cure Disclosures Addendum and Exhibits-7538SMarshfield}, attached hereto and an integral part thereof; namely:
Exhibit #1 – Code Violation / Hazardous condition - Main service line to Meter & Inferior electrical panel - Cost to Cure : $1,500
Exhibit #2 – Structural Defect – Rotting and Failing Fascia & Soffit around 90% of structure – Cost to Cure : $2,700
Exhibit #3 – Code Violation / Hazardous condition – Cost to Cure : $1,500
Exhibit #4 – Structural Defect – Cost to Cure : Unknown
Exhibit #5 - Certified, Inspection #0826157538 – 35 pages
Exhibit #6 - Contractor’ s bids, License #_____________” – 4 pages,
and again .. I would shorten the names of the exhibits so they fit on one line without leaving words out …
Also, please remember:
You want your 1st couple of exhibits to be your worst… so if they open the exhibit, they see that the title of the exhibit is not an exaggeration ….
Hopefully, they won’t open the rest of the exhibits… but if they do, you have focused on the worst pictures/defects first ….
Rename the inspection report to the exhibit name above, and attach it to the addendum.
Rename your contractor’s bid (If you have one) to the exhibit name above and attach it to the addendum.
How does all this sound? Look?
Hope this helps you and best of luck!!
Ball is in the sellers court...you can wait, or withdraw your offer...those are your options.
Thanks @Charlie Fitzgerald. Guess I knew that, but am growing impatient, as contract stipulations aren't being followed at this point. Will have to sit and wait then, as we don't want to withdraw. Thanks again!
Perhaps the seller simply wants to know how much this is going to cost him/her. Some inspectors put their guesstimate on the inspection form others don't. It can depend how you stated your request as well to the seller. Did you make specific statements i.e mold to be removed by a "mold remediation company" or simply 'mold to be removed". Not saying you had mold just using this as an example.
Sometimes your request as stated may require an expert and it may take a little longer to know the actual cost to the seller. If you want the property be patient and realize sometimes being patient can pay off big time.
I had a buyer recently for a property I wanted to sell and he decided some white paint in the attic was mold and insisted it be removed by a "Mold Remediation Company". Had he simply said white stain to be removed I would have removed the paint. The MRC wanted $3500 to remove the "non mold" so I told the buyer to take a hike and he lost out on a good deal.
In PA, the standard Purchase Agreement states that if the seller does not respond in specified amount of time, the buyer can decide whether they want the repairs made or get a credit for the amount requested.
Not sure how this is worded in CA.
This does happen and I would say if it is a good deal, be patient, otherwise move on.
I wouldn't read too much into it. Sometimes things just take longer than you expect to get back to you. That's a pretty quick turnaround time for a reply to inspections in my opinion
I agree with the above feedback from everyone. You can either wait it out or withdraw your offer (in writing via email or letter) and get your EMD refunded back to you.
Also, for the future, if you are going to ask for a "price reduction" due to "unforeseen repairs" - it is best to use other terminology other than a "price reduction" or "repair requests" as some sellers may tend to entertain other offers instead, or decline your offer all together. I like to use the terminology "Forensic Cost to Cure Disclosures Addendum and Exhibits" and list your "Cost to Cure" exhibits on a state official addendum form.
Hopefully, you had a home inspection done by a certified home inspector, and you received a certified inspection report with color photos describing each defect. You can actually use the photos and copy some of the wording from the inspection report and use it on your "Forensic Cost to Cure Disclosures Addendum" which now becomes a "Fact of Record"
NOTE: Even though in most cases you will be making offers on “distressed” properties which are sold “As Is, Where Is, and With All Faults”, you will STILL have the right to an inspection of those properties to determine the exact condition of each property in its “As Is, Where Is, and With All Faults” situation. You should also have your agent email you to confirm your rights to have the inspections done and approve them – or get a refund of your deposit(s).
When you are ready to create your exhibits - I would keep each exhibit short… combining items so that you have 1 exhibit for each of these if applicable:
Hazardous Conditions,
Code Violations,
Unpermitted Improvement
Out of Code Improvements
Structural Defects (perhaps to include foundations, rot, joists, bearing walls, grade and draining, etc.)
Material Defects (perhaps to include electrical defects, plumbing, septic defects, heating and cooling defects, etc – things that are maybe not so “structural”, however they make the property uninhabitable unless items are repaired)
So… you are not making each picture into an exhibit… make a separate exhibit for each one of these categories above and combine pictures and bids to total the cost to cure for each category.
It is best to create AND FOCUS your exhibits on “unseen” items… items discovered only because you actually completed “intrusive inspections” THEN, bring in the “seen” items to make the exhibit longer… if you have time…
If you don’t have any unseen items, then you have to work with the best repairs you can find…
and also remember …
Your opening paragraph should go into an official state addendum form provided to you by your agent…
either you send an email to the agent to tell them the words … (best when the agent is working with you)
or you get the blank state addendum form, and put the words in (required when the agent is NOT working with you) ..
and your opening paragraph could be something like this:
"Due to hazardous Conditions, Code Violations, Unpermitted and Out of Code Improvement, and Structural Defects & Systemic Defects sited in the exhibits below with a total Cost to Cure of $32,700, the Purchase price of the property will be $38,000; the Cost to Cure is evidenced by “Exhibit #5 - Certified, Inspection #0826157538” and “Exhibit #6 - Contractor’ s bids, License #_____________”, and in the following exhibits [found in the attached file name {Forensic Cost to Cure Disclosures Addendum and Exhibits-7538SMarshfield}, attached hereto and an integral part thereof; namely:
Exhibit #1 – Code Violation / Hazardous condition - Main service line to Meter & Inferior electrical panel - Cost to Cure : $1,500
Exhibit #2 – Structural Defect – Rotting and Failing Fascia & Soffit around 90% of structure – Cost to Cure : $2,700
Exhibit #3 – Code Violation / Hazardous condition – Cost to Cure : $1,500
Exhibit #4 – Structural Defect – Cost to Cure : Unknown
Exhibit #5 - Certified, Inspection #0826157538 – 35 pages
Exhibit #6 - Contractor’ s bids, License #_____________” – 4 pages,
and again .. I would shorten the names of the exhibits so they fit on one line without leaving words out …
Also, please remember:
You want your 1st couple of exhibits to be your worst… so if they open the exhibit, they see that the title of the exhibit is not an exaggeration ….
Hopefully, they won’t open the rest of the exhibits… but if they do, you have focused on the worst pictures/defects first ….
Rename the inspection report to the exhibit name above, and attach it to the addendum.
Rename your contractor’s bid (If you have one) to the exhibit name above and attach it to the addendum.
How does all this sound? Look?
Hope this helps you and best of luck!!
Another important point about code violations is that they can not always be cured. Some violations like illegal additions may be brought up to code on the building code side and this is what is typically priced out, however, they may not meet zoning codes such as setbacks or maximum ground coverage so the addition can't be kept, bringing the value of the property down even further. We have run into many well built structures that exceed zoning regulations and have to be torn down. A full zoning analysis should always be done when any suspect structures are present.
Appreciate all the valuable insight! The seller's response arrived, albeit 2 days late, but it is here so I'm thrilled. Just need to negotiate an item but otherwise good-to-go! Everyone's advice was spot-on!
In Maryland the lack of response is agreement to repairs or amount of repairs.... I would check the laws in your area..
In Maryland the lack of response is agreement to repairs or amount of repairs.. I would check the laws in your area..