A home buyer may not have the option of buying a home in as-is condition when financing is involved. Remember that the property itself is the bank’s collateral, and they want to ensure that it is in good condition.
Whether you are purchasing a home in as-is condition or not, every home buyer will want to perform inspections. In the Oklahoma Real Estate Contract, there is a time period in which a Buyer may conduct inspections – if anything alarming is discovered in that time period, the Buyer may cancel the contract and be refunded earnest money.
What type of inspections should be done by a home Buyer?
Most home Buyers do an EMP inspection – electrical, mechanical, plumbing. The inspector checks the heating and air systems, electrical wiring and boxes, all plumbing. It’s also encouraged to have the roof inspected. Even if it’s new or newer, you want to make sure the roof shingles aren’t damaged or that the flashing is done correctly.
In Oklahoma, we always do termite inspections. Every home in our state either has had termites or will get termites, so best to check it out. Structural inspections are the most costly, but if in the budget, spring for this too. If there are fireplaces in the home, you may want to get a chimney inspection. Obviously if the property has a septic system or a pool, you’ll want to do those individual inspections. Some Buyers will want to conduct a Mold Inspection if it is suspected or if anyone in the household has sensitive allergies. See a list of home inspectors on my Preferred Vendor List.
When financing is involved though, the Appraiser may have requirements. So if you as a home Buyer are willing to scrape and re-paint chipped paint or wood-rot after closing, that’s not an option if it is an Appraiser requirement. All Appraiser required repairs MUST be completed prior to closing.
Repairs are negotiated after inspections are completed, and this is when all parties need to compromise. Often there will be a defect with the home that will cause the Buyers to not wish to proceed with the purchase transaction. In those cases, the Seller may recognize that NO Buyer will accept that defect without possibly lowering the price.
Buying a Home In As-Is Condition when Financing is Involved
Sellers have already made plans to move on and have had their home off the market. Buyers has spent money on inspections and an appraisal. This is the time level-headed Realtors will help bring the parties together to work out a win-win for all. If you need that type Realtor in your corner when purchasing a home, please do give me a call! 918-852-5036
Content written and published by Lori Cain.