Help teaching Buyers about the Offer to Purchase!

[Gregory A. Liebig]

My last post may have not been in the right spot. I've added a page to my site without any links (except here) and it's intended to be very consumer oriented. It's called Before You Write Your Offer because there is a specific problem that buyers can face especially in Wisconsin. I'm sure it's in other States as well.

When I was at an ESA seminar yesterday, I think I misunderstood what Bernie Katz may have been talking about. He mentioned that the State of Michigan has a new form that every Realtor must present to the buyer of any property. Kind-of-Like a Lead Disclosure Form.

I found out that it was a one-line amendment on the Seller's Disclosure's form that explains to the buyer their rights to have a home inspection. It states:
[quote=jsieg]
BUYER SHOULD OBTAIN PROFESSIONAL ADVICE AND INSPECTIONS OF THE PROPERTY TO MORE FULLY DETERMINE THE CONDITION OF THE PROPERTY. THESE INSPECTIONS SHOULD TAKE INDOOR AIR AND WATER QUALITY INTO ACCOUNT, AS WELL AS ANY EVIDENCE OF UNUSUALLY HIGH LEVELS OF POTENTIAL ALLERGENS INCLUDING, BUT NOT LIMITED TO, HOUSEHOLD MOLD, MILDEW AND BACTERIA. quote]

We really need to band together and have the same front when it comes to protecting our clients (the consumers) and if they don't write the offer to purchase correctly, they may get stuck with a home they could regret.

I hope we can get a good dialog started and some small changes made...

[Bruce M. Graham, III]

I see realtors trying to push a 5 or 10 day inspection period all the time, when I have a first time client that has not yet signed a contract I tell them to write in several conditions in to protect themselfs,-
30 day inspection period, exceptable water quality (we have a lot of wells down here) just to name a couple. People do not realize that they can modifiy a contract however they see fit.
Always leave yourself an out.

[Gregory A. Liebig]

Originally Posted by bgraham

I see realtors trying to push a 5 or 10 day inspection period all the time, when I have a first time client that has not yet signed a contract I tell them to write in several conditions in to protect themselfs,-
30 day inspection period, exceptable water quality (we have a lot of wells down here) just to name a couple. People do not realize that they can modifiy a contract however they see fit.
Always leave yourself an out.

That's great! And Good, Experienced Realtors will review the ENTIRE contract with a prosective buyer. But there are two things missing that I would like to see addressed.

1. Buyer Education BEFORE they write an offer to purchase so they know to ask for things they may not know they can
2. Realtor Education about the availability of testing to protect the buyer and even themselves

I think these things are lacking and we should be finding ways to promote this within our individual states. It will probably me a tough road but work it in the end.

[Jason A. Sieg, CMI]

Originally Posted by bgraham

I see realtors trying to push a 5 or 10 day inspection period all the time, when I have a first time client that has not yet signed a contract I tell them to write in several conditions in to protect themselfs,-
30 day inspection period, exceptable water quality (we have a lot of wells down here) just to name a couple. People do not realize that they can modifiy a contract however they see fit.
Always leave yourself an out.

I agree that the inspection period is too short but, 30 days is kind of long. Most Realtors push 5 - 7 days here. I think 10 - 14 days is much more realistic. Think about it, you put in an offer. The offer is excepted. It then takes a day for the sellers Realtor to contact the Buyers Realtor & then to contact you, the buyer. It is now day 2, lunch time when you find out the offer was excepted. Your at work & so is the wife. You got the message on your voice mail. The two of you now need to find a home inspector but you can not do anything about it until after work. Day 2 evening you start looking for a HI. You find a HI you like and the phone tag starts. Due to your own schedules you want to have the inspection done the next day. Day 3, at 6 - 9pm you have the inspection (if it is a good time for the seller). A large majority of inspectors present the report the next day. Day 4 you get to see the report after 5pm.

If you wanted Mold or indoor air quality sampling done you have to wait another day for the results.

If you want Radon sampling done you have to wait 3 - 5 days for results.

If the report said to have a specialist inspect something you have to spend another 1-3 days to have the results of that inspection done.

Don't forget it is going to take a day for the sellers to get your yes or no to buying the home.

Below is a copy of a PDF file of the 2 page Michigan Disclosure Form.

[Gregory A. Liebig]

Originally Posted by jsieg

I think 10 - 14 days is much more realistic. Think about it, you put in an offer. The offer is excepted. It then takes a day for the sellers Realtor to contact the Buyers Realtor & then to contact you, the buyer. It is now day 2, lunch time when you find out the offer was excepted.

I agree that 10 to 15 days is pretty typical

Originally Posted by jsieg

Your at work & so is the wife. You got the message on your voice mail. The two of you now need to find a home inspector but you can not do anything about it until after work.

The only work I'm doing is Home Inspections so I love these calls and answer them no later than an hour.

Originally Posted by jsieg

Day 2 evening you start looking for a HI. You find a HI you like and the phone tag starts. Due to your own schedules you want to have the inspection done the next day. Day 3, at 6 - 9pm you have the inspection (if it is a good time for the seller). A large majority of inspectors present the report the next day. Day 4 you get to see the report after 5pm.

The report usually is transmitted the same evening unless it's a very large inspection then it's the next morning

Originally Posted by jsieg

If you want Radon sampling done you have to wait 3 - 5 days for results.

The report goes out on day 2

Originally Posted by jsieg

Below is a copy of a PDF file of the 2 page Michigan Disclosure Form.

Thanks for the pdf. It's much more specific than the Seller's Condition Report in Wisconsin. How can we make a difference at the State level to get these things changed?

[Jason A. Sieg, CMI]

Originally Posted by jsieg

If you want Radon sampling done you have to wait 3 - 5 days for results.

Originally Posted by gliebig

The report goes out on day 2

Unless you are doing electronic monitoring, most Radon collection systems require 48 hours or more for collection and then need to be mailed to a lab where it will take them 8-24 hours to provide results by Email. That is 2 days collection, 1 day (over night) mail delivery and 1 day in the lab = 4 days. This is not including weekends. Anything mailed on a Friday does not arrive at the lab until Monday. Add 2 days. Also anything arriving on a Friday also may not receive any attention until Monday. Add 3 days.