Repair request prior to Inspection

Asking for repairs prior to inspection can be dangerous for negotiations, once the buyer has asked for something to be done the seller will in most cases consider it double dipping to come back and ask for more things after the inspection...even though the contract allows for this to happen legally it wont set right with the seller. Best to keep it all on one list. Also please try to make the buyer understand that what they are getting is not going to letter perfect and code violations do not necessarily mean there is something that can be done about it.

If I was representing the buyer there would only be a few instances I would do so and the same would apply if being asked as the listing agent. I would only ask for known defects that would effect the ability to perform a full inspection. Example: Sellers have disclosed that the gas valve on the water heater did not operate. I would advise buyers to ask valve to be repaired as not being able to light the pilot on the hot water heater would make inspector unable to test function. If buyers take it at face value that valve is the only defect, inspector can not perform full inspection, buyers purchase and repairs valve only to find out that much more is wrong. Same with "AC just needs Freon". Only other scenario would be for appraisal concerns which isn't necessarily a must do before inspection.

Hi Terry,

This is a great question and one that comes up often, specifically as it pertains to Paragraph 7D(1) and (2) as you mentioned in your question. In fact, I go into an in depth explanation about this paragraph with all my Buyers as the wording "as is" is alarming. First, Paragraph 7A states that Buyer may have the Property inspected and 7D details accepting "as is" meaning the present condition of the Property and that agreeing to 7D(1) does not preclude Buyer from inspecting under 7A, from negotiating repairs and treatments in a subsequent amendment, or from terminating under Pargraph 23 (Termination Option - unrestricted right to terminate... this is a whole other paragraph needing explicit direction to ensure the Buyer actually does have an Option Period).

Anything that was noticed during the property showing (hole in a wall, missing fence, etc) or disclosed on the disclosures OR previous inspection report that was provided should be written in this paragraph SHOULD it be important to your Buyer (factoring in purchase price, over all condition, etc). I also like to add in professionally cleaning of the Property and carpets (if any).

This paragraph is simply a discussion to have with your Buyers since, when I represent Sellers, we do NOT accept repair requests of items that were disclosed up front or on an inspection report provided as these are items the Buyers already acknowledge knowing about. Also, this leads into a whole other discussion in respect to ensuring (whether representing the Buyer or Seller) how important it is to have received disclosures prior to submitting an offer, if possible.

Hope this helps!

Darby Grimmett / KW / 936-827-9217 / darby@darbygrimmett.com

Hi Terry,

I will throw my 2 cents in also. First I see you are an agent. So the question is, are you acting as the seller's agent or the buyer's agent? We will assume the seller's agent. If the repair is going to cost more than the value it can sustain on the final price, then leave it to inspection and negotiation. If the value is going to add to the selling price, I would suggest to the seller to have it done before. I will also assume that the repairs you are asking about were found in the walk through or talked about by the seller in the first meeting. If so, and the above is taken into consideration, then it may reflect in the final asking price.

Michael Jobin
C&K Properties
713.545.2314
MJobin@Jobee.com

During the tour of the home with my buyers, we take an inventory of repairs and rate them from major to minor then decide which repairs are mandatory. We list the mandatory repairs on the contract requesting the seller to repair or make concessions. After the inspection is complete, the contract is renegotiated to include any additional repairs or concessions. But yes I would ask for them before the inspection.

Hi Terry,
If you see something viewing the home that is obviously going to come up, then ask for it. Pg 4, 7D on the earnest money contract allows the Buyer to accept the property "As Is" or "With Repairs". I don't think it will put your client in any worst position regarding negotiations. Of course, during the option period, a Buyer typically inspects and might find other items of higher priority. You might remove that previously mentioned repair in exchange for other repairs to be completed. That or closing cost, lowering the price, etc, etc.
Also, consider the price and other terms of the contract. If your client is getting a great deal, you might NOT want to ask for that minor repair on page 4. Not all black and white. Always put your client's interest first. Ask them what they would like to do in regards to those repairs and explain the process.

Mark McNitt
832-567-4357
www.MarkKnowsHouston.com
Bernstein Realty

Do your inspection 1st. Then use the repairs to negotiate the price down during your option period.