Author Topic: House purchase question - inspection, option period  (Read 381 times)

jtraggie99

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House purchase question - inspection, option period
« on: February 02, 2018, 06:21:35 AM »
I am in the process of looking for a new house (currently rent) in Dallas, which has been an extremely hot housing market in recent years.  Anything decent tends to move pretty fast.  I made an offer an a house I really like, and the sellers agreed on the price. Well, then I hear from my realtor yesterday that a relocation company is involved (one of the sellers is moving for work). The relocation company has stipulated NO option period. Essentially, they had their own inspections done and are providing those, so they feel there is no need for an additional inspection by the buyers. I can still have my own inspection done once we are under contract, but at that point, if there is a problem and I walk, then I lose my earnest money.

My initial thought when I found this out was to pass. I do like the house and it's a good price. They have actually had other offers and interest, but everything breaks down once the buyers find out about the no option period. Is this just completely unheard of or has anyone else dealt with something like this before? Everything looks fine with the inspections they provided, no big concerns. And it's a newer house built in 06 (not something 30 or 40 years old). I am tempted to try and get them to lower the earnest money, and then have my own inspection done. If everything checks out and there are no major discrepancies between their inspection and mine, then we're good.

Of course, if I go that route and there is a major problem that they did not disclose or find, then worst case I lose my earnest money. That said, if I were to find a major problem, is there any recourse to try and get the earnest money back (failure to disclose, etc). Or should I just walk away from this whole situation and keep looking?

GizmoTX

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Re: House purchase question - inspection, option period
« Reply #1 on: February 02, 2018, 06:30:49 AM »
You dont want to waive the option period up front unless you are planning an immediate tear down. The option period is state law, designed to protect you from exactly the problems you are rightly concerned about. Your initial reaction is correct Id pass.

Capt j-rod

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Re: House purchase question - inspection, option period
« Reply #2 on: February 02, 2018, 06:32:21 AM »
I had people in contract on a house that walked and I had to give back the money... Check with your realtor to be sure, but it ain't sold until you close. Ask for a copy of the inspections and call the company that inspected it to make your own conclusions. People forget that these are homes that require repairs, not new cars with a warranty. If you are really worried find someone that is knowledgeable and schedule another showing. Take them with you to view it. Even in a "hot" market, a house is not an impulse buy.

jtraggie99

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Re: House purchase question - inspection, option period
« Reply #3 on: February 02, 2018, 06:40:20 AM »
I had people in contract on a house that walked and I had to give back the money... Check with your realtor to be sure, but it ain't sold until you close. Ask for a copy of the inspections and call the company that inspected it to make your own conclusions. People forget that these are homes that require repairs, not new cars with a warranty. If you are really worried find someone that is knowledgeable and schedule another showing. Take them with you to view it. Even in a "hot" market, a house is not an impulse buy.

Not trying to be impulsive, which is why I am taking time to think this through.  And I have owned a home before, and I am well aware that maintenance and repairs are part of home ownership.  I am not looking for perfection, but I do like to know what I am walking into as much as possible. 

coopdog

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Re: House purchase question - inspection, option period
« Reply #4 on: February 03, 2018, 10:53:40 AM »
First, I'd make sure everyone is speaking the same language. An option period gives the buyer the right, but not the obligation, to extend a closing. A due diligence period is a defined period allowing for inspections prior to earnest money becoming non-refundable.

If you call me up and ask me if my Sellers will entertain an option period. I'd say no. If you asked if they'd entertain a due diligence period, I'd say yes. Perhaps the relo company is confused. I'd double check. It would very unusual to not allow for a reasonable inspection period in a residential contract, even in a hot market.

If the relo company is unbending, perhaps you can hire an inspector out of contract and hope nobody jumps in and puts a contract on it? Your risk is the cost of the inspector vs losing earnest money on poor inspection result.

Whatever you decide, I'd insist on presenting a written offer with whatever terms you decide you're willing to accept Don't rely on the word of the real estate agent. By law (at least in my state), an agent is required to present any written offer to the Seller. If they tell you the Seller has refused their offer, insist on being provided a copy of the signed refusal just to make sure it was presented.

 
« Last Edit: February 03, 2018, 10:55:59 AM by coopdog »