There’s no doubt about it, that right now in Irvine, Orange County it may be one of the best times to buy a home in the last 4 decades. Interest rates and home prices are down and have adjusted and haven’t been this good for 39.5 years according to the housing affordability index. Even though for the first time in a long time there are no additional state or federal tax benefits, Irvine home buyers (including the surrounding areas) are buying away and sales are still moving in the right direction!
Although Irvine home buyers see the benefit of buying, many of them can still have some fears and/or uncertainty when making this huge purchase and don’t want to make a mistake, therefore can be very cautious throughout the escrow process. The escrow process involves many inspections, reports, disclosures, etc and one of the most important features of the escrow process is the Home Inspection. This is what many agents call the “make or break” portion of the escrow and some agents even hate this part for fear that the transaction may fall apart. In my opinion, it is a crucial step (a should not be skipped) in the process, as I want to make sure that my clients know exactly what they are getting involved in. 47% of home sales today are by first time home buyers, and most of these buyers are scraping what they can together just to buy the home and may not have additional reserves for major and unexpected future problems.
With that being said, Irvine home buyers must understand that if they are not buying a brand new home, there will be certain issues with the home. Whether major or minor issues pop up, these will have to be tackled during the escrow process. On any given home inspection report there can be many issues that the home inspector notes….It is their job to be as thorough as possible so that the buyer knows and feels comfortable with what lies ahead. The key to this report is to sit down and go through each of these issues and decide which ones are minor and come with the territory of buying an older home, and which ones are issues that the buyer may not have planned for.
If the buyer cannot distinguish between the two, they may have a long list of items that they want the seller to repair, and in most cases, the seller may panic and not approve some of the important issues or just reject the request as a whole. The goal here is to fine tune this list of repairs and come up with a reasonable request for repairs of items that were not expected. Having a list of 3-5 items that are important to the buyer is much more powerful compared to having a list of 15 items where 10-13 of them may be issues that can be solved with a tightening of a screw, re-caulking certain areas, or painting/patching up.
Home buyers should understand that buying an older home will come with certain expense and to keep those future expenses down, on their request for repairs, request items that are reasonable to both parties. Sellers are more likely to respond to a reasonable and fair request in a positive way and everyone will win. Brian Buffini always says that deep down the buyers of a home WANT to like the sellers, and the sellers of a home WANT to like the buyers who are buying their home. Everyone wants to be fair and have a win-win situation, so when it’s your chance to request repairs from the seller in escrow, make sure you create a reasonable request and you may be pleasantly surprised with the sellers response.
As always, questions, comments, concerns are always welcome and very much appreciated!
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