Life is great, you found your dream home in Paradise Valley, Scottsdale, Phoenix, Arcadia, The Biltmore, or wherever in Arizona. You successfully negotiated the perfect price, in a perfect world way below asking! Now you open escrow and your 10-day or whatever was negotiated inspection begins. Here is a starting point and some advice to help you through the process and get beyond the BINSR finish line with ease.
- Stat with a home inspection and termite inspection.
- If something major comes up (foundation issues, mold, plumbing, A/C not properly working or at its end of life, roof issues, rats (Arcadia you know), etc. You must get a licensed contractor who specializes in these items to do a full inspection on said issue. DONT forget to get a bid or two. DONT simply ask (see bullet point #3 under Buyer May Wish to Reconsider Lengthy BINSR Repair List below) based on what the home inspector discovered. Due your due diligence.
- Once all the bids come in you have a few options
- Ask the seller to fix/cure/repair/replace the disapproved item.
- Ask the seller for a credit (based on bids) and do the work yourself after close of escrow.
- Ask the seller for a reduction of price (based on bids). This is always the easiest for agents.
The negotiations at this point are crucial. This is typically the first part of the deal where it can die (as we call it fall through). Sometimes being too aggressive (with price) in negotiations at the start can hinder this part of the deal. You or your agent could have negotiated a deal so good that the seller says “I’m done – take it or leave it”!
This is not so much what to do but advice from a realtor. Be willing to meet half way or open to negotiations. Remember to get any deal done, both parties must feel like they won. Enjoy the process, work with not against your agent, you’re buying a dream home in Arizona, and most items or issues that come up with real estate seem worse than they really are and can be fixed/cured/repaired…
If you read this far, read this Good BLOG on the BINSR from AAR below…
Find your Arizona dream home at http://www.lavishpadz.com/
Buyer May Wish to Reconsider Lengthy BINSR Repair List
Managing client expectations is an important part of being a REALTOR®.
Unlike most buyers and sellers, REALTORS® have an understanding as to what is customary and reasonable to expect throughout the transaction. When this knowledge is shared, clients are less likely to convey unreasonable demands or experience disappointment when unrealistic expectations are not met.
By way of the Arizona REALTORS® Residential Buyer’s Inspection Notice and Seller’s Response (BINSR), the buyer can choose to provide the seller with an opportunity to correct identified items of which the buyer disapproves. In considering this verbiage, it should be noted that the term “correct” is akin to “fix” or “repair.”
Determining which items, the seller is asked to correct by way of the BINSR lies exclusively with the buyer.
Nonetheless, before the buyer proceeds to convey ill-conceived demands, it may be appropriate for their REALTOR® to provide them with information of the nature set forth below that can assist the buyer in this process.
- The buyer is not purchasing a new home and, consequently, it is unreasonable to expect or demand that the home be in the same condition as a new build.
- It is the buyer’s obligation to perform all desired inspections. The buyer, by way of the BINSR, should therefore avoid asking the seller to perform further inspections of the property.
- In completing the BINSR, the buyer should not merely restate the home inspector’s recommendations. For example, it would be pointless for a BINSR to state “Home inspector recommends that dryer vents be cleaned every five years.” By way of such a statement, the buyer has not identified a condition or item of which they disapprove.
- Requests for upgrades are inappropriate. The BINSR is the buyer’s opportunity to request that disapproved items be corrected, not ask for the home to be remodeled. So, if the inspection report were to note that a portion of the carpet is fraying, the BINSR should not be used to request the installation of hardwood floors throughout the home.
- Although the buyer is free to identify on the BINSR whatever items they choose, in doing so they should be mindful of the condition of the item and the cost the seller will incur in addressing the issue. For example, a home inspector may note on the inspection report that the air-conditioning unit is nearing the end of its useful life. Such a remark may tempt the buyer to ask that the air-conditioning unit be replaced. However, the air-conditioning unit is currently in working condition and the cost to install a new unit is substantial. It is therefore possible that the seller will be put off by such a request and deem it unreasonable.
- The buyer should consider the nature of the market before completing the BINSR. In the event of a “seller’s market,” or when a property is highly sought after and has received numerous offers, it is unlikely that the seller will agree to a lengthy list of repairs.
While the REALTOR® cannot control or dictate the way the BINSR is completed, they can share information with their buyer to help manage the buyer’s expectations.
Since excessive and unrealistic BINSR demands often prove counterproductive, taking the time to educate buyers as to what’s customary throughout the industry is likely time well spent.