On this episode of Waypoint Real Talk, we were able to sit down with Nick Parrinello of Real Living Casa Fina Realty in Tampa Bay. Nick is a successful broker/owner that is very knowledgable about breaking down inspection reports in their more simple terms.
Check out the video below!
Inspections Are Never Clean and Have Issues
Even with new construction, buyers get raw data from inspection reports and need an experienced agent to filter the data. According to Nick, inspection issues fall under four categories:
- Informational – age of water heaters, 200 amp service to house, etc
- Maintenance – remove shrubs and branches from touching house, caulk, etc
- Recommendations – cosmetic damage etc
- Problems to Address – More severe – structural, safety hazard, or failing systems
Once agents are able to separate those issues into their categories, an experienced agent can assist buyers through the final purchase/contract process.
Inspection Issues and Others Discussed in The Video:
Repair Limits Vs As-Is Contracts
Most of our contracts in Florida are as-is. We cover why that is and how to easily make use of the as-is contract to negotiate on a home.
Why Are As-Is Contracts Used?
Repair limit contracts can get very complicated. At the same time, as-is contracts make it easy for buyers to back out of a deal during the inspection period. We cover this in greater detail in the video.
Good Faith Vs Bad Faith Negotiations
A good faith negotiation would be a request for repair/replace when the item appeared during the home inspection and is a significant cost or prohibiting the buyer to move forward with insurance/loan agents.
On the other hand, bad faith negotiations would mean a buyer new about a particular defect (one that is in the seller disclosure) before making an offer on the home. Then, the buyer would request that item to be fixed, before they close.
How to Negotiate Big Ticket Items:
- Remaining Useful Life: Is it working today or was it disclosed?
- What is the: Condition and price expected on the contract VS condition and price AFTER repairs are made?
- What’s fair to both parties based upon expectations at time of contract?
- Costs & Estimates: The More the Merrier
- Lender Issues, Insurance, and Four-point Issues: can concessions be given or do repairs have to be made prior to closing?
- Escrow Holdbacks – what are the risks vs necessities?
Dealing with inspection issues and other agreement issues can be tricky. Use this video and blog as a guide to make your way through the process.
If you have any questions feel free to comment below or reach out! 🙂