| This is Part VII of the saga of me as a Realtor | | | | been involved in, and typically it has to do with a bad |
| buying and selling my family's personal residence, and | | | | case of "Buyer's Remorse". |
| I am sharing my thoughts because I now have actual | | | | According to US Legal Definitions, Buyer's Remorse is |
| and first hand knowledge of what my clients | | | | an emotional response on the part of a buyer in a |
| experience. I view the home inspection as having | | | | sales transaction, which may involve feelings of |
| three key objectives. The first is to have a clear | | | | regret, fear, depression or anxiety. The best way to |
| understanding of the physical condition of the | | | | cope with Buyer's Remorse, and minimize its |
| property so that the Purchaser(s) know what they | | | | destructiveness, is to make sure that you are as |
| are actually buying and make a "red light/green light" | | | | informed as possible. In some areas, cancellation |
| decision on whether to continue with the transaction. | | | | clauses are placed in contracts. |
| The second is to educate the Purchaser(s) on | | | | In the majority of the cases however, the |
| recommended maintenance/life expectancy for the | | | | Purchaser(s) do want to buy the property if the |
| systems and the structural components of the home. | | | | Seller(s) take care of the issues addressed in the |
| And third is to create a list for the Seller(s) of those | | | | home inspection report. This is like being at a yellow |
| items that the Purchaser(s) would like repaired | | | | light: proceed with caution. The next step is to |
| replaced and/or remedied. | | | | identify from the home inspector's report those |
| The first question the Purchaser(s) must answer | | | | items that the Purchaser(s) would like the Seller(s) to |
| upon completion of the home inspection is: "Do you | | | | repair/replace/remedy. The items are specified on a |
| still want to buy the property?" This is the "red light | | | | Sales Contract Addendum and typically states that |
| green light" objective. If for whatever reason the | | | | those items that normally require a licensed |
| Purchaser(s) no longer wants to proceed, then this is | | | | tradesperson to install or repair should be corrected |
| one of the few opportunities to void the contract in | | | | by a licensed tradesperson. Further, receipts for |
| the market area of Northern Virginia where I practice | | | | corrective actions are to be provided to the |
| real estate. The Northern Virginia Association of | | | | purchaser 5 days prior to the pre-settlement walk |
| Realtors' (NVAR) document regarding the Home | | | | through inspection. Sometimes a credit to |
| Inspection and Radon Testing Addendum provides | | | | Purchaser(s) at settlement towards closing costs will |
| under Paragraph 1.ii: Notice voiding this Contract. How | | | | be offered. This can be problematic with some |
| often does this happen in practice? I estimate this | | | | lenders, so be certain to verify that it will be allowed |
| occurs in fewer than 5% of the transactions I have | | | | before proceeding with a credit. |