So your offer has been accepted, earnest money has been turned in, and you’ve conducted your home inspections…
Now what?
Per the SLAR residential sale contract, you have three options coming out of the inspection period:
Option 1: You may terminate the contract based on the inspection findings (womp womp).
In this case, substantial structural elements or systems in the home are typically found in poor condition, and you are not comfortable proceeding with the purchase of the home, regardless of any change in price or potential repair made. In this instance, the earnest money is most commonly returned to you as the buyer.
Option 2: You may proceed with the purchase of the home without any changes to the existing contract.
This is most referred to as proceeding with the purchase “AS-IS”.
Option 3: You may proceed with the purchase subject to a change in the terms in the contract.
This option is most common and can be seen in a variety of ways. You could ask for repairs to be made, a reduction in purchase price, a credit towards closing costs to offset expenses in making these repairs yourself, or any combination of the former options.
What else do I need to know?
The inspection period is a wonderful opportunity to learn more about the house you’re planning to buy! It is not necessarily a time to create a punch list of upgrades and enhancements.
It’s important to remember that no home is perfect, so we often recommend prioritizing your larger concerns coming out of the inspections. Since the seller is not required to make any of the repairs as a result of your inspections, we’ve found that reasonable requests tend to be considered and addressed without much hesitation.
Consult with your trusted Realtor® and even your lender to ensure you’re proceeding with the most beneficial and realistic path for you!
