Very useful. We just got the inspection today. We are focusing on the electrical wiring and slab. Appreciate you vid and help.

@McDonaldResidential

Жыл бұрын

Good luck!

With the current economic conditions for fires this video is gold right now! We are doing inspections on a four Plex and it has a flat roof needing replacement but with some of the new systems that are available are “circling around $60,000 so we are going to be figuring out what the max we can ask for in concessions is and then after closing there are some new coding systems we can use that are actually a bit cheaper.

@McDonaldResidential

10 ай бұрын

Sounds like a good plan

In today’s market your lucky to get house if you ask for a home inspection. So many people are forgoing the inspection to make a more competitive offer.

@McDonaldResidential

3 жыл бұрын

That is true. Buyers in some markets, like mine in Seattle, are electing to do an inspection prior to making their offer or skipping the inspection altogether. This video doesn’t apply in that situation because there is no way to negotiate inspection items.

@JT-zy2ft

3 жыл бұрын

@@McDonaldResidential We’ve practically given up getting anything this year it’s so bad (Lancaster area). Only way your getting a house is if you wave all contingencies. Had an offer rejected on a house with a septic system and the accepted offer was lower and had no septic inspection.

@McDonaldResidential

3 жыл бұрын

@@JT-zy2ft it’s a thought market for buyers right now. Sellers do generally lean towards no-contingencies over a slightly higher price.

Not to be derisive, but realtors in my opinion, fail the seller by not recommending an inspection before listing. Too many sellers look at comps and say their house must be worth the comps without knowing that there my be significant work needed just to get financing approved. Also, on credits to buyer, there can be limitations on how much credit a buyer may receive at closing (VA loans are 4% as I recently learned).

@McDonaldResidential

3 жыл бұрын

I'd agree that pre-inspections are generally a good idea for sellers

After inspecting in Seattle for 40 years it is important to remember the types of defects the inspector will discover. Material defects, work order items required by the bank, health and safety issues such as mold, and also insurance binder issues from the insurance carrier such as knob and tube wiring.

@McDonaldResidential

3 жыл бұрын

Appreciate the perspective!

Spider-Man coming through with the knowledge. Great video, thanks man.

@McDonaldResidential

2 жыл бұрын

Glad it was helpful!

Zach - great helpful video, thank you,

@McDonaldResidential

Жыл бұрын

you're welcome, happy to help

VERY HELPFUL!!! Thank you!!!

@McDonaldResidential

11 ай бұрын

You're welcome!

Excellent video. Going thru this exact situation as I type this. And, in our case, it's compounded by the home having multiple offers on it...with buyers in line waiting with the hopes of our purchase being dropped so the next can take it. Also, it's listed about $40-60,000.00 under market for the small area it's located having a strong Historical Significance. The very real possibility is the seller having a "Take it or leave it, I have many others waiting" stance. The positives on this being we have been in the rehab field for decades, & can perform 90% of what's needed. This will be our home and as such, we can do one room at a time as we live there. However, having reviewed the home inspection performed 2 days ago, very high levels of Radon is an entirely different issue. We are requesting costs for mitigating this dangerous situation at today's sit down with our Buying Agent.

@McDonaldResidential

Жыл бұрын

Thanks for sharing your story

@isaacsmith9981

Жыл бұрын

The good news is that the other buyers should see that the house has high levels of radon. The sellers will have the same issue with other buyers if they realize how dangerous radon is

@ragtie6177

Жыл бұрын

@@isaacsmith9981 we ended up going in at 5grand over asking price and getting the seller to split points along with having a Radon company install the needed mitigating equipment. Levels are that of nearly nothing, which is 10 times below acceptable . We've been in the house for several months.

Thank you!

@McDonaldResidential

3 жыл бұрын

You’re welcome. I hope it was helpful!

It is important to know what is reasonable to expect. A defective water heater that leaks, raw wood with defective siding, a moss covered roof that makes the shingles undependable are all reasonable to expect some concessions on, as long as there are no back up offers.

@McDonaldResidential

3 жыл бұрын

Thanks for sharing some of your insights and experience!

@JC-eu8rg

2 жыл бұрын

even if there are back up offers, as a seller you'd have to imagine that person will want the same concession, if not more.

Great video!

@McDonaldResidential

4 жыл бұрын

Thanks!

As a home inspector for over 20 years I would tell the seller (in regards to the water heater), he is going to have to fix it for whoever buys the house so he might as well fix it now so THIS deal goes through.

Thanks, Zach, for your wealth of knowledge. I'm currently experiencing this. Post-inspection, there are six needed repairs. However, two are potential deal-breakers. There's a plumbing pressure regulator issue, and the showers in the different bathrooms can't adequately run simultaneously. As well the HVAC issue is the house doesn't get cold enough. Now I accepted to overlook the compromised deck, worn carpet at the basement landing. However, the house is 80, a stable home. So I don't know how to approach this without expressing that I shouldn't have to pay anything for those issues. Please help.

@McDonaldResidential

3 жыл бұрын

Hi Anissha. Glad this video was helpful for you. Ultimately, you need to decide what repairs you are willing to take on and what repairs you are not willing to take on. This is different for each person. I'd talk this through with your agent and get their input too. The seller made zero repairs when we purchased our current house. We asked for some repairs/concessions, but they were unwilling to make any. We decided to purchase the home anyway.

@Annabee399

3 жыл бұрын

@@McDonaldResidential Thanks, Zach, for the advice. As you know, this is a nerve-wracking time. Ok, I can tell my sellers aren't accommodating about things most repairs either. Yet, I'll just pray they're diplomatic about the systems stuff. Thanks for the great videos too.

@Annabee399

3 жыл бұрын

@@McDonaldResidential Thanks, Zach, I did just that. My agent and several inspectors pulled some shady business the last week of closing by patching things before our scheduled appointment, and the repair blew out days after purchase. However, that created distrust for even the inspector I hired. So, I spent thousands of dollars and am prioritizing and budgeting. Yet, quite expensive, my mortgage rate Is 2.8, and I live in an ideal subdivision, so I'll be alright. The only con is my excellent credit is taking a beating. But in time, it too will be fine.

Great video

@McDonaldResidential

Жыл бұрын

Thanks

Super helpful! I appreciate this great video! I learned something new - if that's truly the final offer I have, it doesn't hurt to repeat it as a response to a counter offer, in case seller might reconsider it the second time. Thanks again!!

@McDonaldResidential

Жыл бұрын

You're welcome, glad it was helpful! An agent shared that tip with me when I was just getting started in the business in 2014.

Hey Zach can you touch on what due diligence down payment means in terms of being able to negotiate the issues found in the inspection? If costly issues are found in the inspection and the seller refuses to fix anything, will the buyer lose the due diligence down payment if they walk away from the deal?

@McDonaldResidential

3 жыл бұрын

In Washington State, earnest money is generally protected by the inspection contingency. The buyer would have the opportunity to negotiate with the seller or back out during this time period and retain their earnest money deposit in most situations.

Can you negotiate the binding contract price after inspection ?

@DariusWelchREALTOR

3 жыл бұрын

Yes if there's a contingency

@McDonaldResidential

3 жыл бұрын

Yes, if you have an inspection contingency...as Darius already answered

The title search for the buyer is being done by the seller's lawfirn where she works as a paralegal. In that case, is it too crazy to ask the seller to pay all buyers closing cost?

@McDonaldResidential

4 жыл бұрын

Hi Javier, I'm not sure how things work in your state. However, in Washington State, it all comes down to what you and your agent negotiate with the other party.

Can you get your earnest money deposit after negotiating extensions of date??? And you back out....

@McDonaldResidential

3 жыл бұрын

Typically the buyer does not get the earnest money back unless there is a contingency protecting it and allowing the buyer to back out

What would you do in this situation.. just had inspection on my hopefully new home! It was advertised as a 4 bed 3 bath home. After the inspection we learned one of the bedrooms is not up to code, so this home is now a 3 bed 3 bath. I assume this is going to affect the appraisal as well (which is next week).

@McDonaldResidential

2 жыл бұрын

What do you mean by not up to code?

@dougruwe288

2 жыл бұрын

Needs a closet and a 2nd egress and it’s a bedroom.

Just completely an inspection. We found termite damage in a few spots on both first and second floor. Hiw serious is termite issue usually? How much can a buyer negotiate the price down? Do most buyers walk away after they found out about the termite damage? Shall I send the inspection report to the seller's attorney?

@McDonaldResidential

3 ай бұрын

I would speak with your agent on this question. We don't deal with termites much in Western Washington. I typically get bids for repair if I want to negotiate an inspection item like this so we have real dollar numbers to discuss.

Hey Zach can I still request for a seller credit after the inspection period is over?

@McDonaldResidential

4 жыл бұрын

Depends on what your lender will allow and what your agent can negotiate with the seller. Typically it's hard to negotiate further after the inspection period because you have little-to-no leverage left in the negotiation.

@Soso0408

3 жыл бұрын

Is it a good idea for the buy’s agent to get involve with inspection negotiations ? Or just let the buy’s lawyer handle it ?

@colinnakano2127

2 жыл бұрын

So we made a formal response, on big ticket items Seller counter offered, on day 10 do we as a buyer still have one more opportunity to purpose or request or stand strong and ask again for the big ticket items? Even after day 10? Also in WA

@McDonaldResidential

2 жыл бұрын

@@colinnakano2127 hi Colin, typically the initial inspection period on the WA contracts is 10 days, but the remaining response timelines are much shorter. Hoping your agent was able to provide some good insight here. Did you end up getting the repairs you requested?

@McDonaldResidential

2 жыл бұрын

@@Soso0408 agents typically handle these negotiations in WA state. I’m sure it’s different elsewhere.

What does it need if my cash to close is in the negative.

@McDonaldResidential

3 жыл бұрын

Do you mean to say that your cash to close is negative? If I'm understanding this correctly, that would mean that you would receive a refund at closing. Sometimes my clients putting little to no money down do receive part of their earnest money back at closing if there is leftover money.

What about a 60 amp house that needs to be a 100 amp?

@McDonaldResidential

3 жыл бұрын

What are you wanting negotiate in this situation?

@JC-eu8rg

2 жыл бұрын

@@McDonaldResidential I'd imagine changing from 60 to 100, since 100 is pretty much the minimum, even on older homes. Probably would cost 2-4k

What if your chimney inspector discovers a big deal and the seller says he’s contractor says it’s not a big deal and he will fix it. I don’t wanna move forward. My realtor submitted a offer release.

@McDonaldResidential

Жыл бұрын

That sounds like the right move in your situation. Sometimes it's best not to move forward with a purchase.

Who pays for the second home inspection

@McDonaldResidential

3 жыл бұрын

Generally, the seller pays for a re-appraisal in my market (seattle/bellevue metro)

Inspection is always a smart way to protect the buyer. What if the seller is retired and on a fixed income and can not afford repairs? Why not simply negotiate a reduced price so the seller can use the savings for the repairs?

@McDonaldResidential

Жыл бұрын

Yes, agreed that home inspectors are important for buyers. Reducing the sales price is a good option, but it puts little cash in the pocket of a buyer with financing. That's why a credit from the seller is typically preferred by most buyers instead of a price reduction. It's the same difference for the seller.

@RetrieverTrainingAlone

Жыл бұрын

@@McDonaldResidential Not clear. A credit also would not put cash in the pocket of the buyer needed for repairs.

@McDonaldResidential

Жыл бұрын

@@RetrieverTrainingAlone if a buyer receives a $5k credit from the seller at closing, then they would be paying $5k less out of pocket at closing. So, they would have $5k more in their pocket than they otherwise would have. It’s the equivalent of a seller giving the buyer back $5k.

I have an attorney say to me once on a slow drain that oh we're not going to provide a credit because it's still functional I said okay you want to buy this tennis racket for me it's missing Street strings but it's still functional they wanted and pay the credit

@McDonaldResidential

Жыл бұрын

That's a good comeback

(Buyer side ) Who does this negotiating, attorney or agent ?

@McDonaldResidential

3 жыл бұрын

In WA State, agents negotiate on behalf of clients during the inspection period. It may be different depending on what state you are in.

@Soso0408

3 жыл бұрын

I had the same question

I would never trust a seller with major repairs. They will do it as cheap as possible.

@McDonaldResidential

Ай бұрын

I personally prefer to do my own repairs, too. I'd rather a $ credit or price reduction

I dropped my price 7k appraisal came back 10k over price, buyer got 17k benefit already and I aint fixing or giving any credits. Will just list 17k higher As Is. Have a 2.9% mortgage and already living elsewhere for free

@russellperkins8334

2 ай бұрын

😂😂😂😂

@mayachilisa18

2 ай бұрын

How did this work out for you? Did the buyer end up going through with the sell?