This week we're going to start with the inspection process. Once a buyer is under contract, they have 10 days to do their due diligence on the home. That is to check everything out, the neighborhood the schools and, most importantly, the property that they selected. During that 10 days we highly recommend that you hire an inspector who is a licensed professional. He/She will come through the home and will check all the major systems in the house, your plumbing, your electrical, your water heater, your roof. A lot of them check for termites also. Any structural defects. They'll provide you with a comprehensive list of items of what you should be concerned about. Also at the end of the inspection, which usually takes two to three hours, they will meet with you at the home. They'll point out the items that they found that you should be concerned with. Then, there's an official Arizona State forum called BINSR or the Buyer's Inspection Notice of Repairs. What that is, is a list with the defects that they found in the home for the seller to have an opportunity to correct. Now they do have a choice. The seller has 5 days to look over the list and decide whether they're going to do the repairs that you requested, do some of the repairs or none of the repairs. Your choice is to decide to proceed with the contract or not. 9 times out of 10, we can negotiate a successful repair list with the seller. We do recommend that you do get a home warranty also with the home so if any thing pops up in the first year of buying the house. Those would be covered.
Once the inspection period is covered, the bank will usually order your appraisal. The appraisal is one of those things that is not ordered by the buyer, not by us, it's actually ordered by the lender or the company that is going to give you your mortgage. It is a third party. They're licensed and are supposed to be a third party, independent view of the home and the value of the home. They'll go out to the home and will want to know what kind of improvements have been done to the home. They're going to be looking at that home and comparing it to other homes that are very similar most likely within a one-mile radius. Sometimes we have to go further away. We try to mirror the process that a appraiser would go when recommending a price. They will look at comparable homes; if you have a single-story, you're looking at other single stories. If it has a pool, the others have a pool. We hopefully can find good comparables and come up with a value. They will do pluses and minuses on the the comparables to come up with what the value of your home has in the market from what they've seen. So it could be different than what the buyer had offered, it could be different than what the seller had listed.
Thank you and if you few missed steps 1 & 2, we do have those posted on our social media website and YouTube.
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Have a great week everyone. Are you ready to BUY or SELL in the Phoenix, Arizona area?
PH: 623-455-5689 Visit: http://www.GiordanoSellsAZ.com