Jury Verdicts and Home Inspections

Buyer’s Inspection Timetable:  From “5-2-1” to “10 Days”

I don’t know about jury verdicts, but as a listing agent representing Sellers, hearing from the Buyer’s agent immediately after the home inspection is almost invariably bad.

The usual explanation:  the inspection turned up one or more deal breakers, and the Buyer is canceling.

That said, waiting too long to hear from the Buyer ain’t so great, either.

Waiting 9 Days (!?!) Instead of 2

Until last year, the Buyer’s inspection was divided into three intervals:  1) how long the Buyer had to do the physical inspection; 2) how long the Buyer had, post-inspection, to deliver a written list of issues to the Seller; and 3) how long the Buyer and Seller had to resolve any issues raised in step #2.

Under that system, the most Sellers had to wait to hear from the Buyer once the inspection was done was typically two days.

While simpler in many respects, the new “all-in” single deadline potentially allows a much longer time lag.

At least in theory, a Buyer who negotiates for the standard 10 calendar days could have the inspection performed on day #1, then wait till day #10 to negotiate any issues with the Seller.

Discouraging Buyers from doing that?

One other change in the Inspection Addendum, which stipulates that if the Buyer and Seller are unable to timely resolve any inspection issues, the Purchase Agreement stands as originally agreed upon — that is, the Buyer waives any issues.

P.S.:  while inspection periods have definitely lengthened over the years, the apparent increase is exaggerated by a change in counting method.

Namely, the unit of measurement is now officially a calendar, not business day (avoids questions like, “Is July 3, 2017 a holiday??”).

So, a “5-2-1” inspection period would typically span 10 calendar days, after accounting for the intervening weekend.

See also, “It’s 11:55 p.m. on Day #10 of the Inspection Period — Do the Buyer and Seller Still Have a Deal?“; “The Waiting (is the Hardest Part)”; “You mean, there’s no deal AND they get their earnest money back??“



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