My husband and I are in contract on an investment property as buyers, completed the inspection, and our agent submitted our repair requests timely. It’s also important to think about the quality and aesthetics of the repairs you’re requesting. If the seller does not want to receive the inspection report, nothing in Washington state law says that seller must be forced to receive it. All properties are subject to prior sale or withdrawal. Seattle, WA 98109, Responding to Requests for Repairs on Your Home, there are some sellers that want to repair everything. When you receive a list of repair requests, you have a few options. From a seller's perspective, a request for cash credit is usually preferred to making the repairs as long as the amount requested is reasonable. There is no protracted negotiation. Springer advises sellers to wait to make that offer until after they get the list from the inspector, because they may be able to beg off certain fixes in exchange for items such as the washer … A buyers’ right to request secondary inspections is waived after they send a repair request. Ten days covers the inspection, reading and reacting to the report, and submitting through his/her broker a request for repairs (if any) or a request for additional inspections (for more on that aspect, please read on for a key paragraph with key points). In a residential real estate transaction in Arizona, the Buyer and Seller use the Buyer’s Inspection Notice and Seller’s Response (BINSR) to request and negotiate repairs to the property. Form RRRR, Revised 12/18) RESPONSE AND REPLY TO REQUEST FOR REPAIR (RRRR PAGE 1 OF 1) RRRR REVISED 12/18 (PAGE 1 OF 1) Published and Distributed by: REAL ESTATE BUSINESS SERVICES, INC. a subsidiary of the California Association of REALTORS® The sellers failed to respond through their agent. Request repairs: The buyer may request that the seller complete a list of requested repairs, as a condition of the sale moving forward. Buyer performs inspections and reviews disclosures as part of buyer's. It is legally binding on the home seller who agreed to make the repair. Revised December 2018. The BINSR is an addendum to the Arizona Association of Realtors Residential Purchase Contract that allows, in an organized manner, the Buyer to request repairs and the Seller to respond. NWMLS data may not be reproduced or redistributed and is only for people viewing this site. In that period, the buyer cannot change his/her request. Quantity. ___Seller responds to Buyer’s request on the attached form RRRR. Buyers then have three days to reply to the seller’s counteroffer. In the state of California, any and all services that require being a licensed broker in California are performed by HomeBay Broker CA, Inc., CalBRE #01976154. Sellers may also be more reluctant to make repairs in a hot market, thinking another buyer will come along if the present deal falls apart. Both sides can also agree to do a “hold back;” similar to monetary concessions, escrow holds about 1.5x (times) the repair estimate, with the work completed after buyer moves in and seller is typically responsible for payment (not the best position to be in for sellers, who may be asked to pay even more if a major issue is discovered after the start of repairs). 155 Before the 10th day elapses, notice of any defects that the buyer wishes the seller to correct must be provided. Listing data last updated 2020-12-10T07:44:24Z. If the seller agrees to repairs, the inspection period is over and a major walk-away contingency for the buyer is removed. Seller agrees to all of the modifications or repairs in buyers request They don’t even have to conduct an inspection if they change their mind about buying the home. By contrast, if an inspector notes that a water heater is nearing the end of its useful life, the seller can simply inform potential buyers to factor this eventual water heater replacement into their offer. The seller gives the buyer a lump sum at closing to cover the cost of repairs, which the buyer agrees to carry out. They agree to complete the negotiated repairs no less than three days from the closing date. Buyers typically have 10 days after mutual acceptance to complete the inspection process. The home inspection (including checking septic systems for rural locales) takes place at a time convenient to all parties. Buyers have the right to purchase a home where the seller hasn’t lied about its condition. Expect your request for any cosmetic or general maintenance request to be met with an unfavorable response from the seller. Sellers: A buyers’ right to request secondary inspections is waived after they send a repair request. A/C units probably haven’t been serviced in quite a while, water heaters don’t function at proper temp or are in violation of local code, and sellers will still say there is nothing wrong with the house on the Sellers Disclosure Form. Even if the buyer has requested repairs be done, it can be a smart move to counter the repair list and offer the buyer a cash credit. By providing buyers with disclosures and your inspection report before they even put in an offer, you have the potential to increase your chances of a smooth and successful transaction with minimal surprises or unexpected turns. The seller can respond to the Request for Repair with the Seller Response and Buyer Reply to Request for Repair (form RRRR). Now that the home buyers request (s) for repairs or modifications has been submitted to the home seller, it’s their turn to respond. Buyers waive the inspection contingency if they don’t meet mutually agreed deadlines, even if it’s not their fault. Buyer learns of items in the home that are not up to current code, are not working and/or deferred maintenance. SELLER RESPONSE AND BUYER REPLY TO REQUEST FOR REPAIR No. John L. Scott, Inc. Seattle Center Office You have more negotiation power with these fixes because you're close to closing and … ... CA asked for a the items noted in the home inspection to be corrected by the seller. Buyers can either accept or reject the seller response. Buyers can get very nervous when faced with major repairs and the transaction may fall apart if the buyers feel there may be other issues if the maintenance isn’t handled by the seller. What Happens When You Get a Request for Repairs. Armed with very little time to consider the Seller s response, the Purchaser will need to determine a course of action rashly, without ample time to consider the repercussions (losing the house vs. costs of repairs, time constraints, unexpected loss, etc.) The seller may respond by agreeing to complete three items, pay a concession (typically cash at closing) for two more issues and ignore the others. We've improved the traditional real estate model with modern technology to cut costs, not quality. In fact, listing agents can incorporate language in the counteroffer that establishes a barrier between the seller and the buyer’s inspection report. (The disclosure statement asks sellers if an inspection has been recently performed and a “yes” places sellers in a difficult position.). Other times, a seller credit is packaged in with a higher sale price, so the money becomes part of the mortgage, allowing buyers more flexibility to pay for repairs. Seller's agent said response would be in by end of day yesterday, but nothing as of 8pm. In most states, the offer to purchase real estate says the purchase is “as is.” Nonetheless, offers also typically allow for buyers to inspect the property, review reports and seller's disclosures and cancel the agreement if the buyers are not completely satisfied with what they find. You may need to think about repair amendments during the course of buying a home, typically during the option period and after your inspection.Your agent will prepare your repair amendments for you, but as a buyer, it pays to understand how to write an effective repair amendment as the language used in them can have serious effects down the road. The seller then has five days to respond (no response indicates seller’s refusal to make repairs). This is the one and only reply period for buyers. Sellers typically get a week or two to hire contractors or do the work on his/her own, depending on how the buyer and his/her broker wrote the request for repairs. In a hot sellers market where homes are getting multiple offers days after going on the market the chances of a buyer asking for a lot of repairs are slim, knowing the seller … [NOTE: We incorrectly stated 1.5% of the repair estimate in earlier versions of this article.]. Hi BP Folks! Ask for a credit: The buyer may request a credit (also called a concession), in an amount that’s enough to cover the repairs. The BINSR is an addendum to the Arizona Association of Realtors Residential Purchase Contract that allows, in an organized manner, the Buyer to request repairs and the Seller to respond. Buyer sends an explicit message: “Fix these things or I'm canceling the contract.”, The seller agrees to the fix-it list, counters it or rejects it.If the buyer doesn't like the answer from the seller, they can cancel the contract and receive an. $3.00. Buyer and seller agree on an offer price & terms. The broker has a duty of care to ensure the inspection takes place without issue. In addition, the repair list dollar amount is usually relatively small in the scheme of the total transaction. The amount is usually computed at 1.5 times the estimated cost. A buyer can attempt to continue to negotiate for inspection-related repairs during his/her 3-day response period but sellers are not obligated to reply, and by taking this extra step buyers have essentially rejected the seller’s initial response for repairs. Don’t get caught up in the paint color of rooms, landscaping, flooring that you don’t like, etc. When you find a home you want, it is important to pick your battles when it comes to repairs requested from a home inspection. Sometimes the buyer submits a list of things to be repaired, and other times, buyers ask for a cash credit in lieu of repairs. In other words, buyers are using the home inspection contingency to help make a final determination on whether to buy the property. Seattle, WA 98109, Phone | 206-468-2928 Here’s the key paragraph with my key points: Buyers can typically receive an additional five days to complete secondary inspections after the initial 10-day period – to check on special issues such as pests in the walls, cracks in the chimney or potential issues with the roof. As such, you may have a few different options. The inspector is hired by the buyer and licensed in Washington state, and no one else – except for the buyer – has the authority to inspect the property. If material defects are found, the seller is obligated to make repairs up to a given amount, say x percent of the purchase price or a certain dollar amount. It's smart to complete your seller's disclosure packet and to get your own inspection done before you list to help expedite your sale. Sellers concerned about potentially excessive repair costs can contractually negotiate maximum amounts and have the buyer cover costs over the specified limit. A home warranty (one year or two year) can also be a great option to help assuage buyer concerns. He/she: What if the buyer wants all items identified in the inspection report to be addressed? Rejecting the seller’s response equates to the buyer’s termination of the purchase and sale agreement. Note that it's not uncommon to provide a list of repairs on a separate attachment to the RR form if space is limited (simply check the box to indicate a list is attached, and cross reference the date on the list). To be sure, when buyers terminate an agreement it is typically after they learn of an issue with the home following the inspection – not to aggravate a seller. Yes, this part of the inspection process can spark frustration – or even anger – on the part of the seller, but there is generally little that he/she can do without having completed a seller-favorable counteroffer earlier in the purchase/sale phase that can include a demand for non-refundable earnest money should buyers fail to meet certain terms (something we see in a seller’s market). The market conditions play a big role in what buyers will ask a seller to repair or replace. A cash credit in lieu of repair can also eliminate any concerns/disputes regarding the quality/craftsmanship of the repair (i.e. As the seller, you can demand that inspectors are bonded although it is not required by the state. Perhaps they have “moved on” and are thinking about their next home. The seller prepays a contractor to do the work. In all cases, it is up to the buyer’s broker to share inspection-related details with the client’s mortgage lender as it may impact the loan application. All information provided is deemed reliable but is not guaranteed and should be independently verified. Just when they thought the negotiation portion of the home-selling process was complete, sellers are faced with the potential for more negotiation. More often than not, sellers agree to some repairs. A portion of the seller's proceeds can be held in trust after closing and used to pay for repairs. Managing broker is David Bezeau CalBRE# 01331414.Home Bay Technologies Inc. and its subsidiaries fully support the principles of the Fair Housing Act and the Equal Opportunity Act. The objective is to uncover defects in the home that may require a response from the seller – or, conversely, confirm there’s nothing serious and give buyers peace of mind. No warranties or representations are made of any kind. And the next buyer who comes along may have the same concerns, but in … Let’s be clear, though, that sellers never grant permission to inspect their home for the purpose of empowering the buyer and applying pressure on owners to accept demands from that buyer, such as seeking a price reduction when an inspection identifies an issue. All sales on single forms are final. Please note: that the seller does not have to agree to the buyer's RR, if desired, as the sale is … So, let’s assume sellers grant buyers a privilege to inspect the home before completing the purchase. Add to Cart. Let's take a look at how the process works. The buyer then comes back three days later and asks for HVAC repairs. They should request one set of repairs to sellers after ALL inspections are completed. That means the cost of any repairs were presumably reflected in the offer price. You can: Offer to handle all the repairs. Having inspections done in advance also allows the seller to repair anything that needs fixing before they go into escrow. If you take this route, the “as is” language in the offer has more teeth. The buyer’s expectation is that these repairs are going to be performed by the close of escrow, by qualified professionals, and with all governmental approvals. It’s tempting to ask a seller to repair a tile that’s cracked or add a fresh coat of paint to a fence, but do so at your own risk. Seller's Response to Home Inspection Can Kill a Sale ... or counter the buyer's request for repairs or replacements based on the home inspection. On the other hand, there are some sellers that want to repair everything and sell their property for top dollar, in top condition. As it states in the bulleted item above, no seller is obligated to make repairs to the home. For example, some sellers are incapable of making repairs and others just do not want to make them. However, they can pull out of the deal before the deadline, citing the inability to complete the requested repairs. This process can run any length of time as long as all parties agree and provide signatures. If Seller checks the box: “Seller agrees to all of Buyer’s Requests,” then the Buyer should sign & date at the bottom of the RR and the process is complete. When submitting a request for repairs, the buyer sometimes asks for particular contractors to do specific work. Final Thoughts On Your Buyers Request For Home Inspection Repairs Obviously there is no right or wrong way to handle your home buyers request for home inspection repairs. RRRR #1 [Seller Response and Buyer Reply to Request for Repair] Seller Response to Buyer Requests. a seller completing the repair vs a licensed professional). Now that you understand the request for repair process, you know how to do your homework ahead of time, go into your home sale confidently and be prepared for all potential outcomes. You can also get more well-thought-out offers since the buyers have a better idea of the condition of the home when they put in an offer (less change of additional repair or cash credit negotiations). Often, those sellers believe the report was delivered to him/her for the sole purpose of applying pressure to the demands for repairs made by the buyer who delivered the report. Contract specified that seller had 2 days to respond (yesterday was the deadline). _____ (Or other Corrective Action) (C.A.R. 3  And in other cases, buyers prefer to make the repairs themselves after purchasing the home. Sure, a seller can agree to the second response or, more likely, ignore it and either complete the agreement without making repairs or the seller is lining up a potential backup buyer (one that likely has fewer – if any – inspection-related demands). “Most real estate agents recommend buyers overlook cosmetic repairs that they are able to afford fixing after the sale,” explains John Lazenby, president of … In fact, buyers can get out of a purchase and sale agreement for any cause – without explanation – if they have a signed home inspection contingency as part of the contract. In fact, if it’s a seller’s market and there are lots of buyers vying for the property, they may reject them altogether. The seller has three days from the time of receipt to respond. The buyers request the sellers to make the following repairs… That’s it! Should the seller accept a copy of the inspection report during this process? 100 4th Ave. North, Ste. [ See first tuesday Form 269 ] The request for repairs: first tuesday’s Property Inspection – Buyer’s Request for Repairs is used by the buyer’s agent when the buyer makes a written demand on the seller to correct or eliminate the defects. As the seller, you should make sure your listing agent does not allow the buyer’s contractor/uncle or neighbor/roofer to inspect the home; that’s against the law. Email | [email protected] A contract for the purchase of a home is just that - a contract. The licensed inspector, buyer’s broker and his/her client should all be present for the inspection – but not the seller. That’s all that’s written! For example, if an inspector notes a leaky roof, a wise seller would know that all buyers are going to want the roof fixed and can have that work done. Sellers don’t have to agree to any repair requests. Agrees to buyer’s repairs (or monetary concessions, paid in advance and based on a contractor’s estimate); Does not respond (same as seller rejecting the request), or; Makes a counteroffer, seeking compromise. Office | 206-448-9600 While it would certainly be nice for the seller to fix every little home inspection issue before you put your money down, there are only so many repairs most sellers are willing to commit to – especially in a seller’s market. Once your buyers get a chance to review the report, they’ll send you a request for repairs. Also, it’s up to the buyer to determine whether he/she wants to purchase the home considering its condition. The seller is mad at the real estate agent and buyer wanting to know why they are still asking for repairs. No response from buyers is the same as acceptance to the seller’s reply. Forms are hard copy only and not provided digitally. They can also sell the home "as is" and disclose the issues with the home. This post will explain what your options are when buyers come asking for fixes. From a seller's perspective, a request for cash credit is usually preferred to making the repairs as long as the amount requested is reasonable. If I’m your listing agent, the answer is “Absolutely not!” Once a complete report is delivered to the seller, he/she has a legal obligation to attach the documents to the Seller Disclosure Statement for any future buyers to see. The database information herein is provided from the Northwest Multiple Listing Service (NWMLS). This decision is typically wise because it can be costly for sellers to begin marketing again and find a new buyer. A seller may respond by agreeing to do some or all of these repairs based upon reports that they have obtained. If the buyer rejects the request, he/she can find another home to buy and seller can find another buyer. Step 29 – If applicable, complete the Seller Response and Buyer Reply to Request for Repair (form RRRR) – aka the seller's response to buyer's Request for Repair (RR). The timing is critical. Common home repairs to request (but you may not get) Here are some common items on buyers' home repair lists, although sellers may or may not be willing to fix them: A seller credit to the buyer goes towards buyer's costs at closing. It becomes very difficult from a  moral perspective for the buyer to make repair requests because the buyer knew the condition of the property prior to writing the offer. Form RRRR, Seller's Response and Buyers Reply to Request for Repair. If the home seller agreed to repair something before the sale but did not make that repair, their failure to honor the details of the contract is called breach of contract. Sellers typically get a week or two to hire contractors or do the work on his/her own, depending on how the buyer and his/her broker wrote the request for repairs. If you buy a home in a solid sellers' market, you probably can't request too much from your sellers. 155 Yet, that is the manner in which some buyers use the inspection report, taking advantage of the seller’s good-faith allowance for access to his/her home. The seller agrees believing that this is the only repair that the buyer wants. The seller gives the buyer a lump sum at closing to cover the cost of repairs, which the buyer agrees to carry out. The timeline can be extended, for example, should something more complex – like a sewer-line inspection – requires hiring a contractor to examine pipe from home to street. The Appraisal: What Sellers in Seattle/King County Need to Know, John L. Scott, Inc. Seattle Center Office, 100 4th Ave. North, Ste. If both buyer and seller want to work together, the seller can offer to make repairs or give a repair credit. So, if I were the Seller, I’d sign off in a heart-beat, because all I’m doing is acknowledging that the buyer had a desire for certain repairs. Note that a seller's credit is rarely used for minor repairs which could be done before closing. Once a buyer counters a seller’s offer for repairs, the seller’s original reply becomes void. If the seller accepts a contract from a buyer with an FHA or VA loan, any items called out by the appraiser must be remedied to complete the transaction. ... Form RRRR, Seller's Response and Buyers Reply to Request for Repair. Many real estate experts would argue that sellers can be damaged by a buyer’s delivery of an inspection report when it does not represent a seller’s home in a way that he/she would otherwise wish to have it described. 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