Quote:
Originally Posted by Nabatron
T-minus 4 days before subjects are removed...one of their subjects was a home inspection and home insurance. Does anyone know what a home inspection requires? like what are they looking for ect...also subject to home insurance was a weird one. From what I recall wouldn't you get home insurance once u start living in the home?
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While I agree with Hondaracer that those clauses are essentially a get out of jail free card, you'd also want to be mindful that buyers might use the home inspection as a tool to bargain your price down.
When this is done prior to subject removal, I see it as a legitimate bargaining tool. If there are issues that need to be addressed prior to signing a legally binding contract, price negotiations are entirely expected in any sort of business transaction. So in Nabatron's case, be mindful this might happen. I generally believe in the home inspector's professional ethics, so I wouldn't suggest the buyer and his home inspector are intentionally teaming up to pressure you into lowering your price.
On the other hand, my notary has told me of a few stories where the buyer has previously presented a subject-free offer, or an offer that does not include a home inspection. Then after the offer is accepted, the buyer requests for a home inspection, and the unsuspecting seller agrees to it. When the home inspection is finished, the buyer then uses the home inspection as a tool to pressure the seller into reducing his price. It doesn't matter that a binding contract has already been signed by both parties -- at that point, the unscrupulous buyer is really playing a mind game to pressure the seller to give in. It is true that the seller has a legally binding contract in his hands, and should the matter gets to the courts, the courts will obviously be on the seller's side. But the mind game is, if the seller already has the next property lined up for purchase, he likely can't / don't want to have his own property sale fall through, so his only option is to give in and agree to a price reduction.
I'm not suggesting Nabatron's buyer is going to do that. But there are unscrupulous people around, and you want to be aware of the possibility.