Failure to Include Contingencies for Property and Mechanical Systems Inspections and Skipping Your Home Inspection to Save Money

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Before making an offer have someone who is knowledgeable with regard to building structural components and mechanical systems, go through the home with you prior to writing a purchase offer. Then you have additional information available to help in determining your negotiating strategy. Your Offer to Purchase should include a contingency for a professional inspection.

Such a person could be a relative, a contractor, or your real estate agent. The point is to get additional information in the form of personal opinions without it costing you money at that stage. Make sure that the person you are relying on is in fact knowledgeable with regard to
property evaluation.

A word of caution: In regard to using the real estate agent’s opinion, if the agent is a seller’s agent or a dual or designated agent, then keep in mind that their job is to either look out for the seller (seller’s agent) or remain neutral (dual or designated agent).

Only rely on the opinion of an agent if that agent is your true buyer’s agent and only if that agent has the experience, knowledge, and background such that the agent’s opinion will be of value to you.

Agents, by law, are only required to disclose “known” defects. Many listing agents don’t investigate the condition of property they list because if they found problems they would have to tell
prospective buyers.

Once your Offer to Purchase is signed, it is prudent to pay for a professional property inspection. Property inspectors are available in most areas. The best ones to use are those who issue reports, which meet or exceed the internationally accepted standards of the American Society of Home Inspectors (ASHI).

Such an inspection is general in nature and depending on the home you are buying, you also may want to consider additional inspections and tests such as: (click on the links for more information)

• Radon Testing    
• Lead Paint Testing    
• Mold Testing
• Furnace Cleaning and Inspection
• Chimney Cleaning and Inspection
• Pest Inspections   
• Swimming Pool Inspection
• Well Testing
• Septic Inspection

TIP: It is important that any offer to purchase contract contain a contingency clause that states that the offer is subject to whatever testing you desire to do and that the results of said testing and inspections must be satisfactory to you or you may cancel the contract and receive your
deposit back.

Know the property you are purchasing. Have the appropriate inspections and testing done as part of the deal. Further negotiating may be in order in the event that such testing and inspections indicate the need for a repair or replacement.

Making the offer contingent upon testing and inspections gives you the leverage to be able to re-negotiate with the seller, as you would then have the option to cancel the contract and receive your deposit back if they won’t make a repair or give you a repair credit for legitimate problems. After this negotiation is completed, the Purchase and Sales Agreement can begin.

Many states have a property disclosure law that requires a seller to complete and sign a property condition disclosure that asks pertinent questions pertaining to the condition of the property. A copy of this form generally needs to be given to buyers “before” they write an offer. Massachusetts has no such law, but some sellers will provide this document.

Caution: This is not a substitute for property inspections. There may be problems with the home that the seller doesn’t know about and doesn’t put on the disclosure.

Play it safe, do home inspections.

Next; Due Other Contingencies