Researching home purchase/inspection/due diligence

[asufan]

Originally Posted by Sunshinegirl7

I cancelled the appraisal this morning before they had it done.

[by request]
My realtor already showed me and told me again, during inspection period 10 days, I can pull out and not lose anything based on if I find things in inspection, they found a lot in inspection, 3 pages worth, not all serious stuff but stuff that red flagged everything and also we found stuff out on our own by researching it, in Arizona you can pull out during inspection time, if appraisal doesn't appraise for sales price and also if you can't get the loan. she went over this with me a few times to make sure I understood.

We actually are renting in the Twelve Oaks area right now and I love this area, I liked the character that Tempe has but it's two opposite types of houses. We do need to take a break and just enjoy our time here and get to know stuff even better before jumping on the first house we fall in love with.

Keep in mind the "10 day inspection period" is not just the home inspection part of it. It can also be you driving around the area and seeing it's too close to an industrial use, or the schools are too poor or you are finding other things you are not comfortable with. I think you'll be fine getting the earnest money back, if it was after the 10 day period that would be another story. I agree on not maxing out what you can afford, my wife and I are in a house that has a mortgage at less than 10% of our net monthly income, because we have other plans with that money in the future and living in a palace we don't need is not worth risking the future plans.

[Montanama]

I'm glad you feel right about letting this one go. I would pay really good money to see the sellers' faces when they're told. It's not that I wish ill on anyone, but gloating on Instagram, misleading you about the flip, and the crappy job they apparently did on the house in general make me NOT feel sorry for them, lol.

Onward and upward. You will find something that suits you better, and you'll be able to approach all future deals with less emotion, which is freeing in itself.

[Zippyman]

Originally Posted by Sunshinegirl7

My realtor already showed me and told me again, during inspection period 10 days, I can pull out and not lose anything based on if I find things in inspection, they found a lot in inspection, 3 pages worth, not all serious stuff but stuff that red flagged everything and also we found stuff out on our own by researching it, in Arizona you can pull out during inspection time, if appraisal doesn't appraise for sales price and also if you can't get the loan. she went over this with me a few times to make sure I understood.

Then your agent is an idiot - the "standard" contract used in AZ doesn't allow a buyer to "pull out for any reason during inspection", nor does it allow for a buyer to pull out if the sales price doesn't match the appraisal. If the wording on your attempted "cancellation" is incorrect, you could absolutely lose your earnest money - or get sued and *forced* to purchase the house..

I'm telling you, you're playing with fire if you're signing purchase contracts with the mindset that "I can always walk away" - you can, but your earnest money prolly won't come with you.

[DetroitN8V]

Originally Posted by Sunshinegirl7

I didn't just pull out of a contract at all, I found things in my inspection report, the pool made me VERY uncomfortable after the inspector said that's the original pool, cracking in tiles, and all the other things he listed. That's what the inspection is for. I did my homework and had it inspected and didn't like the results of it or the research I found about the previous owner's conditions. I found out that the previous owner did not take care of the house at all and it was in DEPLORABLE conditions. Based on all these facts, I was allowed to reject the house. I am not sure why a few of you think I did something wrong and pity the seller, this stuff happens, i did my homework, I am not going to pay for a house that makes me feel like something could go wrong very quickly. They will get a buyer that will be happy and fine with everything I am sure, so it's time to just move on. I do appreciate all the comments that were helpful and honest.
Thank you

Did you look at the pics from when your sellers bought the house? It was ugly, but hardly deplorable.

[Burning Madolf]

Originally Posted by Zippyman

Then your agent is an idiot - the "standard" contract used in AZ doesn't allow a buyer to "pull out for any reason during inspection", nor does it allow for a buyer to pull out if the sales price doesn't match the appraisal. If the wording on your attempted "cancellation" is incorrect, you could absolutely lose your earnest money - or get sued and *forced* to purchase the house..

I'm telling you, you're playing with fire if you're signing purchase contracts with the mindset that "I can always walk away" - you can, but your earnest money prolly won't come with you.

I always thought is was in the Due Diligence section under Buyer Disapproval, but I haven't seen an actual contract in a few months.

[Ponderosa]

Originally Posted by Zippyman

Then your agent is an idiot - the "standard" contract used in AZ doesn't allow a buyer to "pull out for any reason during inspection", nor does it allow for a buyer to pull out if the sales price doesn't match the appraisal. If the wording on your attempted "cancellation" is incorrect, you could absolutely lose your earnest money - or get sued and *forced* to purchase the house..

I'm telling you, you're playing with fire if you're signing purchase contracts with the mindset that "I can always walk away" - you can, but your earnest money prolly won't come with you.

I don't know where you are getting this from. Item 6j of the Arizona Residential Resale Contract clearly allows a buyer to cancel for items that come up within the Due Diligence period of the contract. The buyer has absolute discretion in this time period. One does not need to hire an inspector, either. Just do your own. All that is required is that the home does not meet your requirements upon performing your due diligence. I know people who "bought" several homes simultaneously when competition among buyers was fierce and then canceled all but one of them. It's not fair to sellers, I suppose, but that is how it works. Sellers should know that the contract they are holding is basically nothing but a piece of paper until due diligence period expires.

[Montanama]

[quote of and orphaned response to deleted post]
Less-experienced buyers, or buyers with just enough awareness of construction issues, etc. to see some flaws are especially likely to feel VERY nervous after making an offer, and often remain so until closing. "Some guy at the bank said" is something Realtors hear pretty often, lol. "My mom's neighbor thinks..." "My Dad will be calling you..." "I didn't realize that road was that busy..." all normal!

Nothing personal against the sellers who I'm sure are nice people, but shoddy flips are just my pet peeve. Parties behaving as though we have a done deal before we've even been through inspection are another, lol, so I'm just not sad this OP, though a stranger on the internet, is leaving them behind.

The house might be just fine. You never know, and inspectors don't look at anything you couldn't see for yourself (given a good checklist and a little technical and code knowledge). To really know the condition of a home you need to bring in more specialized contractors--and even then they won't find everything. Inspectors are great for an overview, often some good knowledge specific to the locality, and a good informative tour of the home you're buying and its general systems--I wouldn't recommend going without one but often recommend bringing in a plumber, electrician, or structural engineer if needed. It's money well spent, usually.

But as Sunshine has said, that many minor issues are a red flag for bigger ones combined with some of the info she had. For a lower price, if buyer is comfortable making repairs down the road, I'm sure it could have been quite alright. Just not right for this buyer, and that's fine. That's what the inspection period is FOR.

[Sunshinegirl7]

Thank you again this house was beautiful and the sellers will find someone that will love it and live a great life in it. They did a great job making it look beautiful. I am just concerned on my half about what I have discovered and researched but for somone else this might be no big deal and they will move in and have no problems whatsoever. I know I personally learned from it. I am moving on and won't be posting again about this but again I learned a lot from this forum and my research and the inspection most importantly.

[observer53]

Okay, enough. Posts deleted. The OP is out of the deal, and now the discussion seems to be headed in the direction of the poster, not the topic.

Closed.