Brought to you by Scott P. Rogers, Funkhouser Real Estate Group, 540-578-0102, scott@HarrisonburgHousingToday.com
Brought to you by Scott P. Rogers, Funkhouser Real Estate Group, 540-578-0102, scott@HarrisonburgHousingToday.com
Tuesday, October 13, 2020
The purpose of a home inspection contingency is to allow a buyer to learn more about the property they have contracted to purchase -- and then to request repairs to the property if they discover new issues of which they were unaware when they contracted to purchase the property.
For example -- a buyer contracts to buy a home for $250K and believes the electrical wiring and plumbing are all in good condition. The home inspection takes place and the inspector discovers that there are four plumbing connections that are leaking in the unfinished basement. It is then reasonable for the buyer to ask the seller to repair these plumbing leaks prior to closing. They agreed to pay $250K for a house that they did not believe had plumbing leaks -- and thus they request the seller restore the house to being a leak-free house.
This is certainly an oversimplification of the matter, as there are often many discoveries during a home inspection -- of varying levels of seriousness or complexity -- but stick with me for now.
Back up at our prior example -- rarely would a seller be disappointed, surprised, or unhappy if a buyer asked for plumbing leaks to be repaired.
But what is a seller to do when a buyer starts to behave irrationally -- in a way that the seller believes no other buyer would certainly ever respond?
For example --
- The home inspector points out that adding smoke detectors and carbon monoxide detectors in every bedroom would be a good safety practice. The buyer demands that the seller install these or the buyer won't buy the house.
- The home inspector points out that current building code would require more insulation in the attic than exists in the attic of a 30 year old house, and recommends that the buyer consider adding insulation in the future for greater energy efficiency. The buyer demands that the seller bring the house up to current insulation code standards or the buyer won't buy the house.
- The home inspector says that one area of the roof has some loose shingles. The seller has a licensed roofer evaluate the roof and re-fasten or replace the loose shingles. The buyer demands that the seller replace the entire roof or the buyer won't buy the house.
I could go on and on.
The point is -- sometimes buyers behave irrationally -- for whatever reason they have decided that they cannot / will not buy the house, and they are going to dig in their feet and make irrational repair requests until the seller finally caves and releases them from the contract. Or, rather, given the standard Virginia home inspection contingency, the buyer just terminates the contract on the basis of the home inspection even though their decision to do so was based on a view of the property condition (and of needed repairs) that is unlikely to be shared by any other buyer, ever.
So, what in the world is a home seller to do in such a situation?
- Get angry. Get frustrated. Get discouraged. All of these are reasonable. You were trying to sell a solid home to the home buyers and you would be willing to address reasonable repair requests -- but the buyer is making unreasonable requests.
- Move on quickly. Once you have determined that the buyer has really moved on, and will not be purchasing the home based on their questionable conclusions about the condition of the property, you should move on quickly as well. It won't do anyone any good to hang around for a few days or weeks trying to convince the buyers to buy the house. Release the contract and get the house back on the market ASAP to seek and secure a new buyer -- hopefully one who behaves a bit more rationally.
- Be transparent with future buyers. If a future buyer is a reasonable and rational buyer -- when you explain the facts of the property condition, and what the seller has done or is willing to do, and how the buyer reacted and what they requested, most future buyers are going to understand and be able to fully consider the house despite the condition issues with which the first buyer took issue.
Of course, I hope this advice is absolutely never pertinent to you. May you never be in the midst of a home sale -- under contract -- just working your way through contingencies and excitedly anticipating a closing in the near future -- and then have the rug pulled out from under you by a home buyer with unreasonable expectations or demands. But if you do find yourself in this situation, try to move on quickly and be transparent with future buyers -- after getting angry, frustrated and discouraged, of course!
