Can we renegotiate after inspection if there are multiple repairs that need to made?
For the most part, the original terms are a binding agreement between both parties. However-in short, yes you can renegotiate after the inspection if there are multiple things that need to be fixed. Within the contract agreement there should always be a due diligence period. This time period gives the buyers an opportunity to have an inspection conducted. If the report shows several items that need to be addressed, normally both parties come together to re-address these items on original contract to find a solution. The seller may agree to apply a credit towards repairs at closing or they may help with the cost or repairs up front.
The appraisal vs. comparative market analysis
During a traditional transaction, once an offer is accepted and inspections are complete, the appraisal normally follows thereafter. What a real estate appraisal establishes is the properties current market value – meaning what it is worth right here,right now. Lenders will require an appraisal to be conducted as security for their mortgages. This assures the lender that the property will sell for at least the amount of money that they are lending.
A comparative market analysis, (CMA) is a report that is generated through the MLS (multiple listing service)platform. Realtors have the ability and are licensed to provide some insight to what is selling by generating this type of report. This helps the agent determine a fair offer price before drafting a contract on a buyers behalf.
The appraisal is a separate function though similar in nature and are conducted by licensed appraisers. The lender will only look at an “appraisal” when deciding whether to lend the money. The buyer pays for the appraisal and will received a report detailing its findings.
It’s all in the appraisal details
In this report you will find the following: Homes that are similar in age, size and architectural style. Properties that have sold within 3-12months. The search will be within a 3-5 mile radius of the subject property. There will be statements about issues the appraiser feels are harmful to the property’s value, such as poor access to the property. It will state for the record if there are seriously flawed characteristics, such as a crumbling foundation it will be noted. This report will also reflect the surrounding areas in which the home is located. These are just a few examples as to what to expect when you are reading details.
Wishing all you wonderful mothers out there a Happy Mothers Day ahead! Hurry back for more next time from Brandiwine Consultants
