Saturday, April 19, 2014

What are Unacceptable Conditions when Selling Kansas City Homes?

What are Unacceptable Conditions when Selling Kansas City Homes?
Unacceptable conditions in the Kansas City homes market are those discovered during a home inspection and/or an appraisal.  Inspectors and appraisers inevitably find “unacceptable conditions,” even when inspecting brand-new homes in Kansas City.  They are par for the course. 

The Residential Estate Sale Contract used by the Kansas City Regional Association of Realtors defines an “unacceptable condition” as any condition identified in the written inspection report prepared by an independent qualified inspector of the buyer's choice.

After the unacceptable conditions are delineated, the buyer has a few options.  The buyer may accept the desired Kansas City real estate in "as is" condition.  The buyer can also decide to cancel the contract.  Most Kansas City homebuyers take a middle route.  They offer to renegotiate the contract.  In modern times, most negotiations are based on a sort of goodwill.  Sellers try hard to sell the home in good order and buyers understand that real property is composed of thousands of elements that could be perfected.

How do the parties negotiate the repairs?  Some contracts limit the dollar amount for repairs of unacceptable conditions.  However, many a closing has been postponed or canceled because this limited dollar amount is based on estimates.  Estimates are notoriously too low when compared to the actual charges.

The seller has a certain number of days (usually five) after he/she receives the buyers offer to renegotiate a resolution for unacceptable conditions.  If the allotted time passes and a new agreement has not been reached by the buyer and seller, or the buyer has not communicated a written willingness to accept the property "as is," then either party may cancel the contract by written notice after the renegotiation period expires. Review your contract for specific terms and details.

In conclusion, unacceptable conditions may not be unacceptable at all to a buyer who earnestly wants or needs to close the deal in a timely manner.  On the other hand, depending on the severity of the problems outlined by the inspector and/or appraiser, unacceptable conditions may be a deal breaker.

Also see our article entitled, "How Pre-Listing Home Inspections Benefit Sellers in Kansas City."

Shelly O'Boynick
Realtor, Broker Associate
RE/MAX Realty Suburban
12701 W. 87th Street
Shawnee Mission, KS 66215



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