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Old 04-17-2009, 07:22 AM
 
4 posts, read 71,063 times
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Hello, we as Buyers signed an initial contract that was countersigned by Seller more than 3 days ago, and have since been in atty review...HOWEVER, there are some contingencies to the existing contract that we are still attempting to negotiate. We are scheduled for a home inspection for tomorrow. My question is, it is unheard of to do a home insp prior to having a fully-executed (and agreed upon) contract? Our realtor is really pushing for us to sign before the home inspection, her reason being that this would cause Seller to "distrust" us as Buyers...no, she is not a dual agent but are we crazy to see red flags here? FYI, as contract is now, home is in "as is" condition and Seller does not intend to make any repairs (nor compensate us for them) to the exisiting electrical and plumbing, which we have reason to believe will require somewhat major work.
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Old 04-17-2009, 07:30 AM
 
24 posts, read 71,854 times
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I am no expert, but am an avid watcher of HGTV house hunting shows and have also recently purchased a home. Every show I've seen and in my experience buying 6 months ago the home inspection is always done after you make your offer and have signed papers, but if the inspector finds items that are major and the seller will not agree to have them fixed or give you money at closing to have the work done, you can back out. But, if the house is being sold "as is" I don't know that you would have that option of backing out. You better speak to professionals before you do anything.
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Old 04-17-2009, 08:01 AM
 
1,552 posts, read 4,416,077 times
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It's generally a waste of money to do a home inspection before you are out of attorney review, because until attorney review is over you don't really have a binding contract.

Let's say that during attorney review the sellers insert an "as-is" clause, meaning that they won't be fixing anything. And let's assume that's not acceptable to you. There really is no point in going forward with the transaction since you will not be able to agree to the terms. And if you paid for a home inspection before getting through with attorney review, you've just wasted the money.

In some cases, where you may be buying a foreclosure or something, and you're going to make an as-if offer anyway (or that's all the bank will accept) you might weigh whether it makes sense for you to do a home inspection first, so that you can make an educated offer.

But generally, it's something that is best left until after the inspection.
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Old 06-12-2009, 01:55 PM
 
3 posts, read 23,737 times
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Full disclosure, I'm a first time buyer too, so I have no experience to draw from.

If it were me, I'd pay for the inspection. As one person already commented about a short sale where "as-is" is automatically implied, the inspection might inform your offer. If the seller has added an as-is clause, you're essentially in the same situation.

As the buyer, your offer probably assumes everything is in relatively good condition. The seller putting in an as-is clause implies they believe otherwise.

Whether that's true or not, the inspection is insurance. If the inspection turns up nothing you move on in exactly the same way as before. If you use the information from the inspection to modify your offer and the seller accepts great! if they refuse, you're out, what, a few hundred bucks and 1/2 a day off work.

Time and money well spent if the alternative is being duped into buying a money pit.
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Old 06-12-2009, 02:10 PM
 
Location: New Jersey
2,510 posts, read 3,673,849 times
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Quote:
Originally Posted by ewny View Post
Hello, we as Buyers signed an initial contract that was countersigned by Seller more than 3 days ago, and have since been in atty review...HOWEVER, there are some contingencies to the existing contract that we are still attempting to negotiate. We are scheduled for a home inspection for tomorrow. My question is, it is unheard of to do a home insp prior to having a fully-executed (and agreed upon) contract? Our realtor is really pushing for us to sign before the home inspection, her reason being that this would cause Seller to "distrust" us as Buyers...no, she is not a dual agent but are we crazy to see red flags here? FYI, as contract is now, home is in "as is" condition and Seller does not intend to make any repairs (nor compensate us for them) to the exisiting electrical and plumbing, which we have reason to believe will require somewhat major work.
I did prepurchase home inspections for 20 years, over 5000 inspections, and I can't even remember anyone doing the inspection without a signed contract. Additionally, beware of any home inspector that asks you to sign a waiver prior to the inspection holding him harmless so that you can't sue afterward if he misses something.
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Old 06-12-2009, 02:19 PM
 
3 posts, read 23,737 times
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I'm obviously and admittedly ignorant as to the workings of the closing process (I really mean that, no sarcasm at all).

I thought the point of an inspection was to find out if there are issues that deem renegotiation of the deal, or backing out all together. If you can't get he owner to fix anything, and are also bound by a contract to buy the property at a certain price, why inspect at all, ever? (OK... a little sarcasm there.)

I need to be educated.

Help me out.
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Old 06-12-2009, 05:08 PM
 
Location: Ridgewood
302 posts, read 2,138,857 times
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Flyer, an Inspection Agreement is required in NJ. It has to be sent to the buyer within 24 hrs of booking the appt and signed before the inspection is started. The contents aren't regulated.
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Old 06-12-2009, 06:07 PM
 
1,787 posts, read 5,455,935 times
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Even though the house is being sold as-is, you can still add a contingency so you can back out of the contract. Unless you have unlimited funds, you should put an amount that you don't want to go over to cover repairs.

If repairs are estimated over the amount you are willing to spend, re-negotiate the price or walk away.
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Old 06-12-2009, 06:08 PM
 
Location: New Jersey
2,510 posts, read 3,673,849 times
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Quote:
Originally Posted by Bergenite View Post
Flyer, an Inspection Agreement is required in NJ. It has to be sent to the buyer within 24 hrs of booking the appt and signed before the inspection is started. The contents aren't regulated.
An agreement yes.......but not to hold him harmless in case he misses something.......the state demanded licensing of home inspectors about 5 years ago and also demanded they carry insurance......what good is the insurance if you sign your rights away to sue if the home inspector is careless and misses something. Unfortunately today "most" home inspectors are recent to the business and while they have plenty of book training they lack the indepth actual home inspection experience. Most demand they be held harmless in their agreement because when the state got involved the opened the door very wide on liability......thats why I got out and am now 100% in radon....testing and mitigation.
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Old 06-12-2009, 08:41 PM
 
Location: Ridgewood
302 posts, read 2,138,857 times
Reputation: 197
Fan, the limit on liability in the inspector's Agreement is not enforceable in New Jersey. My contract even says the limit is equal to the fee paid. Not enforceable, but for some reason my attorney demanded it be in the contract. Twenty three year vet here.

Are you in North Jersey and do you do electronic monitor testing? I need a referral other than RAdata.
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