Heather Ostrom

Understanding the upfront fees – the appraisal fee will be an upfront fee. The inspections (depends on the area) are often steered by the buyer side with a few exceptions in Northern California for country properties where you sometimes see septic and water tests on the seller. A delay on coordinating any inspections once you’re in escrow (while being mindful of when your inspection period starts and your contingency of purchase form are critical here). If you do not need to start inspections because of the way the COP form (see above) is marked – be mindful of this …

• Do not wait to order your appraisal or hold off inspections – your delay as a buyer can be self-sabotage and risk a seller issuing a “notice to perform” if you do not hold to your contractual obligation. There will only be so much your lender or agent can do to protect you, if an appraisal review runs late or there isn’t anyone to have race out to an inspection same day past your contingency period.
• Example, you have a home inspection on day 4 of a 17 day inspection period – you wait until day 15 to order a roof inspection or HVAC inspection because your home inspector suggested further evaluation – and then you need to race to ask for an extension. You can’t assume that you’ll be granted this modification to contract.
• Warning: Contractors and inspectors can be booked out for a week or two, particularly for specialty items, or any testing involved. Some may be free for a bid, but some may be a fee (and a fee that is worth the cost for your review – there may not be any recourse after close of sale).
• Fluid communication and updates between all parties (buyer + seller) can often solve a lot of these concerns if the time extension is genuinely needed, but it cannot be assumed it will be granted – particularly in a hotter market.
• If you have a credit coming – be sure to loop in the lender that it might be coming (example a credit as part of negotiations from a buyer request for repairs).

ALWAYS have a housing solution, plan B. Your homes may not close on time and one deal may fall out and go back into escrow and affect a perfect closing.

• Sometimes you have such a cherry “all-cash” deal closing on your primary home, that you have to just make it happen and find a rental solution.
• If things fall apart, never force a home sale – it’s too big of a purchase and sometimes things don’t work out and it does stink. Sometimes renting is the temporary and right solution.

Seller Occupancy After Closing – Negotiate this Upfront when you’re a seller. Delays can happen on files. It happens, even on the most perfect of files monitored. There are numerous bodies behind the scenes on loan and this can affect your closing. Along with TRID – be aware of this as a buyer. TRID can delay you alone (see #3 above, last bullet).

• Most lenders will not allow over 60 days of occupancy by seller after closing, and most buyers aren’t the biggest fans of much of anything past 30 days (if any at all)

It stinks if the seller knows you have to buy their home and they take advantage of this fact, when it comes to negotiating repairs or a credit after your inspections. All the more important to also have a plan B for housing if you need to walk away and it’s becoming too much. BUT having stated that, sometimes we need to see big picture, is it truly a crisis or an easy hundred dollar fix that isn’t worth walking away from your dream home. Break down all the costs and get bids to make an educated decision that’s right AND wise for you. Education and information is King/Queen.

Sometimes it’s best to take the credit and sometimes it’s important to wait to see request for repairs executed before close of escrow (COE). It depends on the scenario what’s the right route.

• If it’s pest work, sometimes it’s important to have the house  opened up for review, to ensure there’s no other underlying issues or damage that can’t be revealed by a general inspection.
• If you have work being done, as part of your request for repairs – ensure there’s mention of all work being done BEFORE close of escrow.
• Sometimes it’s best for buyer to take the money credit – to take control of overseeing repairs by their own trusted contractor that way they know who the work is being done by, and may be able to save cost.
• Ensure that a licensed contractor is doing all work and receipts are provided before COE (close of escrow)