Jim Valentine on Real Estate
Communication goes a long way in a real estate transaction. Once a written agreement is in place for all intents and purposes all parties are working together. As things happen or are scheduled let the other party know what’s going on.
Everyone wants to know what the other side is doing and thinking as things progress. You want to know what the other side is up to, let them know what you are up to. Open communication between the parties makes for a happier, thus smoother transaction.
When you schedule appointments let them know. When will the pest and physical inspectors be there? Has an appraiser taken the job and are they scheduled yet?
If you are on a septic, you’ll want to know when the inspector and/or pumper is going to be there. Either side can order that one, so it really goes both ways as to who has the update information. Sometimes there will be a radon test, well test, water quality test, and so on.
Every test or inspection can have a financial impact on the transaction including causing it to fall apart, depending on the results of that test or inspection.
The recent residential offer form used in Northern Nevada by agents does not have specific dollar amounts for repairs. The older forms had a cap put on repairs that both parties agreed to when negotiating the offer.
After too many abuses by people treating that as a credit and using it for cosmetic rather than repair items, it was changed.
In the newer offer buyers reserve the right to request repairs from three sources: (1) Identified by the inspections, (2) as allowed by Nevada law for SRPD (Sellers Real Property Disclosure) related disclosures or newly discovered defects; (30 or for repairs indicated on the appraisal report.
That means you aren’t committed to buying the proverbial “pig in a poke,” but both parties have to agree to repair requests. Either party can rescind the transaction if they don’t agree.
The repair clause provides a couple more important disclosures: Brokers have no responsibility to assist in the payment of any repairs, corrections or deferred maintenance on the property.
Items of general maintenance or items of cosmetic nature, excluding conditions of safety, soundness, or security of the property, not expressly addressed in this agreement, are deemed accepted by BUYER. This is but one part of one clause.
Be sure to read the fine print so you know in totality what you are agreeing to. If repairs haven’t been made, or can’t be made in a timely manner, credits are often used to facilitate the close of escrow.
In this situation a needed repair that is estimated to be $800 can be accepted by the buyer and the seller gives a credit of $800-1,000, or so.
The seller can keep packing and the buyers know they are buying the house. This may not be acceptable if you are getting a loan and it is a critical or safety item, but your agent can guide you through that situation.
Loan underwriters are charged with assuring that the property is a good security for the loan they are making, and they can be persnickety. Don’t overlook the inspection and repair component of your transaction in your zeal to get to the close.
It is a long-term investment, and small overlooked items can end up being quite costly if you don’t address them and place the burden of mitigation where it rightfully belongs. All can usually be resolved by communication and common sense.
Take the time to implement both. Be practical when reviewing your inspection reports. Isn’t a time for “gotcha” real estate, it is a time to work through a situation on your way to close. Minor items are … minor. Don’t grow them to your own detriment in order to get a nickel.
When it comes to choosing professionals to assist you with your Real Estate needs… Experience is Priceless! Jim Valentine, RE/MAX Gold Carson Valley, License BS.03481 775-781-3704. dpwtigers@hotmail.com