Day 20+ of Escrow: Price negotiations based on inspection findings
Following inspections, the buyer could submit a Request for Repairs, which will either ask the seller to repair an issue or give a credit based on the findings of their inspection. Once a decision has been made, the buyer signs the inspection results, thus removing their inspection contingency. At this point, the buyer cannot pull out of the transaction without losing the deposit, unless the home does not appraise or the buyer cannot get a loan. The seller has the option of agreeing to the repairs, or they may negotiate the price down to compensate for needed repairs.
If the buyer’s offer includes an appraisal contingency, an appraiser will come out to the property. As a standard of California law, every home must be properly fitted with smoke detectors, carbon monoxide detectors and the water heater must be double strapped. The appraiser will check for this. During this visit, they will be taking notes on the property, measuring square footage, and lot size to ensure it matches the tax assessor information.