Buying A Home

broken contract due to inspection?

We were second in line for what we consider our ideal house. Just got a call from our realtor last night that the current buyers backed out due to inspection issues. We're cautiously excited. Anyone have experience with the different reasons for "inspection issues"? Our realtor says that it's very possible they had buyers remorse, as a realtor will find any way out of a contract for their clients if they want (as he would for us).

 

Re: broken contract due to inspection?

  • Hopefully it was just buyers remorse.  My sister backed out of a house due to foundation problems that the seller didn't want to fix.  She didn't want to spend the $ and take a chance with something like that.  The only other reason I'd personally back out is if I found all the major components of a home needed replacing (roof, windows, furnace, etc) which could be a major financial burden if I initally wasn't expecting that. Sometimes a lot of little problems can really add up. Good luck and keep us updated! 
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  • Yay for you! We're in a similar situation and hoping that the buyers use the inspection to back out. You've given me hope! Have they disclosed what the inspection issues were? I'd think it would be in their interest to tell you.

    Around here the inspection period is generally considered to be a cooling off period as well since it's pretty easy to use it as an out. Maybe they saw something they liked better. 

  • image kaylie622:

    Yay for you! We're in a similar situation and hoping that the buyers use the inspection to back out. You've given me hope! Have they disclosed what the inspection issues were? I'd think it would be in their interest to tell you.

    Around here the inspection period is generally considered to be a cooling off period as well since it's pretty easy to use it as an out. Maybe they saw something they liked better. 

    We don't have any additional info yet - our realtor called us at 8:30 last night with the news. He's the one that suggested it might have been buyers remorse, so if there was anything major he has not learned about it yet. He's pretty good about being on top of these things (he has been in contact with the sellers REA about the status of the contract and gives us updates regularly). I hope to learn more in the next couple days - I will let you know.

    We love this house so much that we've been overly bitter about getting our offer in one hour too late. Good luck to you with your house! 

  • image lincolngirl:
    We love this house so much that we've been overly bitter about getting our offer in one hour too late. Good luck to you with your house! 
  • We broke our contract after inspection...the chimney inspection went well, the home inspection went well...THEN came the pest inspection.  There was significant termite damage to a wall and a live infestation--the inspector did not know "how much" was there, and said he couldn't know without breaking down the wall. 

    We did not want to buy a place w/o knowing the extent of the damage.  There were also problems with electrical ($5000)  It was  a short sale, so the owners were not willing to front any money to fix the inspection problems...

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  • image honey&badger:

    We broke our contract after inspection...the chimney inspection went well, the home inspection went well...THEN came the pest inspection.  There was significant termite damage to a wall and a live infestation--the inspector did not know "how much" was there, and said he couldn't know without breaking down the wall. 

    We did not want to buy a place w/o knowing the extent of the damage.  There were also problems with electrical ($5000)  It was  a short sale, so the owners were not willing to front any money to fix the inspection problems...

    hopefully it's nothing like this! We are avoiding looking at any short sales/foreclosures b/c of our fear of how well the owners have kept things up. This place looks great on the surface, but we shall see either later this week or next. 

  • When I was selling my first buyer backed out due to the inspection.  Her REA didn't share the inspection report and wouldn't tell us anything specific, but did hint at some things which turned out to be legitimate when I had them checked.  They weren't major or anything that I personally would have terminated a contract for and I fixed them immediately.  She was a first time buyer and her inspector was notorious for putting things in such a way that buyers back out.  My only grief with it was that they didn't even give me a chance to address the concerns and just immediately terminated.

    When the second buyer came around nothing of note came up in the inspection and we were able to come to terms for the sale.

    Good luck!

  • Any issues they find in the inspection should be disclosed to you.   We had a buyer back out after the inspection, and their finding a contractor who said the minor cracks in our basement needed 20k in work to be stable again. We called in a structural engineer for his assessment because that was a heafty price tag and he came to the conclusion that the house is no longer moving and needs no such work done. So now we are back on the market because they didn't feel comfortable with that. It isn't that there is an issue with the foundation- but they used it as their way out of the contract.We are currently including the structural engineer's report in our disclosures for future prospective buyers.

    Good luck with your decisions! 

  • We had to rescind our offer right before the inspection period ended, but it was the sellers' fault, not the house's fault.  There were some expensive things that came up in the inspection, but not shocking or deal breakers considering the house was built in 1890, but we wanted to renegotiate on the price.  But the wife was unreachable on vacation as was their idiot nephew who was their realtor.  He said he didn't realize both husband and wife had to sign the paperwork.  (Actually he admitted months later that he lied to our agent, but he didn't know what else to do when he realized she'd gone on vacation.) 

    We had to rescind so that we wouldn't be stuck with it and lose our earnest money.  Weeks later we were finally able to get them to renegotiate with us, but I think their divorce was the biggest factor in our problems.  Hopefully that isn't something you will have to deal with. GL!

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  • We have our inspection scheduled for Friday. Based on the info we've received, it does sound like buyers remorse is the likely reason. They had two inspections - one usual one and the other with a solar panel inspector, and they didn't back out until days after the solar panel one. It seems to me that they wouldn't have paid for the solar panel inspection (that happened a week or so later) if there was something big that they found after the first inspection. And while I love that the house has solar panels, I see this as a bonus, and not a requirement - so if there was something wrong there, I don't think it would be a deal breaker.

    I'll keep you posted! 

  • Good luck! Hopefully it was just buyers remorse.

     

    We walked from our first contract due to an improperly built crawl space. It wasn't vented so it was  holding water and had mushrooms growing out of the rotted floor joists. The house was 3/4 years old at the time.  There were a bunch of other minor things, that just went towards shoddy construction. We filed the paperwork to terminate that hit mess within 24 hours.     There were a few things that were claimed in the listing that weren't accurate at the inspection.  The poor seller had no clue about the crawl space, our inspector said it hadn't been opened since the Jose was built judging by the time it took him to open it. 

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  • Do your due diligence as well but don't be scared just because they were. Everyone has a different level of comfort with repairs etc. 99.9% of things can be fixed so keep an open mind and decide if the repairs, if any, are ones that you can accept and deal with (whether through neogotiations or just doing the work).

    Good luck!

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