The circumstances of the type of payment (i.e. loan or cash) will dictate the criteria necessary in continuing with the sale. There are no inspection criteria thresholds for a cash buyer, although it is strongly suggested to go through the inspection process to be fully informed about the purchase. If the buyer is going to mortgage the property, the lender will state the criteria necessary for that specific loan product. This will determine the inspector(s) which will be required to report the condition of the home based upon their specialization. You can use any certified inspectors you would like. Your Realtor should be able to refer professionals that they have had a positive experience working with. You should expect to spend around $350-$500 for all of the inspection services you might require.
The buyer will have a specified period of time (usually 15 days, but many times less) to inspect the home for any defects. Using a FARBAR As Is contract, the buyer would have that expressed time-frame “within which to have such inspections of the Property performed as Buyer shall desire during the Inspection Period. If Buyer determines, in Buyer’s sole discretion, that the Property is not acceptable to Buyer, Buyer may terminate this Contract by delivering written notice of such election to Seller prior to expiration of Inspection Period.” If the buyer selects this option within the time-frame all deposits will be returned to the buyer in full. There is actually not a requirement to perform the inspection in order for the buyer to select to opt out of the contract.
If the buyer selects to continue the purchase and there are defects found within the home it may be necessary to negotiate an addendum to the contract to either repair the items identified, or determine some other reparation in lieu of compensating for the previously agreed price. Usually any repair item which would be required to gain insurance or assure the habitability of the home and conform to the loan conditions are expected to be addressed with any mortgaged sale. Usually cosmetic issues are not considered in this negotiation, due to the As Is nature of the contract. The seller can agree to any or all conditions set forth in the addendum, or can make a counter offer. The addendum should also include a time-frame for any agreed upon repairs to be scheduled and completed with an adequate ability to re- inspect prior to closing. If an agreement to continue the sale is confirmed the buyer can move on to next step of the process.