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The buyers probably had cold feet. They decided not to buy the house and use the inspection as an excuse. Now they're looking for a way to get their payment back that they made to get the home inspection done.
This.
In Texas, the buyers have a window to back out of a contract (I think it's 10 days?). They don't need a reason. That's what an agent told me (I live in TX and will be sellng my home).
...this is not really a question of "legality" but jerkiness.
I am sure there is never going to be a home inspector that swears our an arrest warrant for a buyer saying "hey the inspector thinks the place might have shifted slab, are you willing to get that fixed?".
Now I am gonna go out on a limb here and guess that you've either got: a) one of the laziest listing agents on the planet b) are trying to go FSBO or "discount list" c) have met one of the most ornery buyers ever d) all of the above
I further I am gonna guess that you have not gotten any earnest money from this "buyer" and /or wrote a weak sales contract that allowed your "buyer" to cancel "no question asked" through the "inspection period". Depending on things like local custom and how soft the market is I might understand such a contract BUT hopefully you did not do anything to show that there was a deal that "fell through" to other potential buyers -- that can really take its toll. Because of that potential I strongly recommend that sellers structure the contract in a way that makes it smart for buyers to accept anticipated negotiated repairs / allowances rather than killing a deal.
I further recommend that buyers think long and hard about anything in an inspection report and realize that NO HOME, even brand new is going to have a "spotless" report from a thorough inspector. Most of the "findings" are things that should help a home owner understand what to look out for OVER TIME more than a "deal killer"....
I believe in Texas a buyer has a window to back out of the contract offer. He doesn't need a reason. My guess is that the buyer's agent just gave that as a reason, maybe to get the sellers to pay for the inspector.
The buyers paid for the report. They are under no obligation to share it with anyone. If they gave it to you, you would have to address the report with future buyers. You might think they were being jerks, but they saved you from getting 3rd party information you can't even ask questions about because the inspector would not have been able to explain anything to you because he didn't work for you, he worked for the buyer.
Just know that if it was the house, they would have gladly sent you the report so you would have to disclose it all. By them not sending you the report, it's the cold feet thing.
Exactly. The inspection report belongs to one party: the potential buyers. The buyer's agent can't even get a copy without the buyer's permission. There could be many reasons they chose not to go forward. You probably will never know what they were. But if you want to find out what was in their inspection report, the next best thing is to hire your own inspector and get an inspection done on your house. Sellers don't often do this, but some do, because then they have thorough knowledge of their home's issues and are better prepared to negotiate.
If you are concerned that there could be serious issues with your house, get your own inspection. Or, you can just wait until another buyer comes along and see what they find.
I agree that the buyers got cold feet and used the inspection to get out of it. It's possible there is nothing big on the report.
Very good advice, as you many sellers don't do this and then find out later there's a problem with their house that they have to disclose on future contracts.
Get an inspection first, and then fix what needs to be fixed, then put it on the market. This is especially a good idea for older homes.
...this is not really a question of "legality" but jerkiness.
I am sure there is never going to be a home inspector that swears our an arrest warrant for a buyer saying "hey the inspector thinks the place might have shifted slab, are you willing to get that fixed?".
Now I am gonna go out on a limb here and guess that you've either got: a) one of the laziest listing agents on the planet b) are trying to go FSBO or "discount list" c) have met one of the most ornery buyers ever d) all of the above
I further I am gonna guess that you have not gotten any earnest money from this "buyer" and /or wrote a weak sales contract that allowed your "buyer" to cancel "no question asked" through the "inspection period". Depending on things like local custom and how soft the market is I might understand such a contract BUT hopefully you did not do anything to show that there was a deal that "fell through" to other potential buyers -- that can really take its toll. Because of that potential I strongly recommend that sellers structure the contract in a way that makes it smart for buyers to accept anticipated negotiated repairs / allowances rather than killing a deal.
I further recommend that buyers think long and hard about anything in an inspection report and realize that NO HOME, even brand new is going to have a "spotless" report from a thorough inspector. Most of the "findings" are things that should help a home owner understand what to look out for OVER TIME more than a "deal killer"....
An option period is a very common addition to real estate contracts in Texas - in fact, I've never written one, or sold a home myself, or bought a home myself without including at least a 10 day option period in the contract. You pay an extra $100 for this protection, and it's non refundable, and generally that is the time period in which you get the inspections done.
Basically you could call up the listing agent and tell him/her that the angel Gabriel came to you in a dream and told you not to buy this house during the option period, and you will get your earnest money back but you're "out" the option fee and of course the costs of any inspections.
Also, as a listing agent, I do not recommend that seller getting their hands on that inspection report and here's why - now they will have to, by law, include that inspection report in the seller's disclosure. And a home inspector has to, by law, write up anything that's out of code now (even if it's not a safety or maintenance issue) and a myriad of very common issues with homes, which can seem overwhelming and overly costly to potential buyers.
For instance, our own home inspection "revealed" about $5000 worth of "needed repairs." Do you know how many of those repairs actually "needed" to be done by professionals? About $800 worth. The rest are issues such as a few fogged windows (the seal has broken on several windows, and with window treatments in place now, it's not even noticeable), moving dirt in one flower bed away from the house (we did that ourselves), and some additional insulation needed in two spots in the attic - that sort of thing. All easily fixed - in our own time frame. But the list could have easily freaked people out.
Very good advice, as you many sellers don't do this and then find out later there's a problem with their house that they have to disclose on future contracts.
Get an inspection first, and then fix what needs to be fixed, then put it on the market. This is especially a good idea for older homes.
Totally agree with these comments.
Also, for both buyers/sellers and RE agents, if you are considering VA/FHA/USDA/RDA as possible mortgage funding avenues, you MUST be aware that new appraisal standards just went into effect.
If you are getting a home inspection, the inspector needs to test all appliances that will convey to ensure their are working properly. Believe it or not, HUD/FHA is now requiring APPRAISERS to test these appliances to ensure they are operating properly. Can you believe THAT nonsense? LOL
There are more changes but they're not necessarily germane to this thread topic.
If you are getting a home inspection, the inspector needs to test all appliances that will convey to ensure their are working properly. Believe it or not, HUD/FHA is now requiring APPRAISERS to test these appliances to ensure they are operating properly. Can you believe THAT nonsense? LOL
Believe it or not? Nonsense? LOL?
I couldn't disagree more with your opinion.
Why shouldn't a HUD/FHA government backed loan require the appraiser to test all appliances that convey?
In Texas, they can pay a $100 option fee that allows them 10 days (I think) to cancel for any or no reason. Smart buyers get inspections done in that time and can cancel - I did. There were so many small and medium things wrong, but expensive to fix. It would have been like putting lipstick on a pig. I gave the seller the report.
Why shouldn't a HUD/FHA government backed loan require the appraiser to test all appliances that convey?
You have waayyy to many initials under that name to be so ignorant of the impact of these HUD/FHA changes and their impact on the lending industry.
If you are, in fact, that ignorant, go and read the recent lending industry changes about the new disclosure recommendations pertaining to HUD/FHA lending as they pertain to home INSPECTIONS.
Then go check on your state's laws about who can conduct home inspections. I know I have and there are queries pending with both my state's boards and the FHA Region about these conflicts in policies and law.
I just love coming to these forums and having to educate RE agents about their jobs.
You have waayyy to many initials under that name to be so ignorant...If you are, in fact, that ignorant...I just love coming to these forums and having to educate RE agents about their jobs. Jeez....
So respectfully questioning TexasDillo's esteemed opinion makes me ignorant?
I spent the majority of my quite successful working career in CA where RE laws & practices, as well as consumer protection legislation, is much different from what is considered acceptable in Texas.
No doubt we'd probably disagree on a lot of subjects.
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