If a buyer discovers a problem during the due diligence period, the buyer can investigate further, negotiate repairs or other concessions with the seller, proceed as-is or, under the standard NC contract, generally terminate the agreement before the due diligence deadline.
Local Data Points
- Average due diligence period: this is a negotiated timeline that depends on a variety of factors: inspection timelines, appraisal timelines, condition of the property, availability of inspectors and access to the property.
- Common inspection issues: this will vary depending on the property or location. Local agents are usually experienced in what to pay attention to.
- Average repair/concession frequency: this is property dependent. Some repairs are simpler to negotiate and others a credit would be warranted.
Common Problems
- Roof
- HVAC
- Plumbing
- Electrical
- Moisture
- Structural issues
- Termites
- Septic
- Flood concerns
- Insurance problems
What Should Buyers Do?
Don't immediately panic. First determine:
- What is actually wrong?
- Is it dangerous?
- What will it cost?
- Is it insurable?
- Is it repairable?
- Does it affect value?
- Is the seller willing to negotiate?
FAQs
Does the seller have to fix problems?
Generally no. Many properties are sold in as-is condition. Repairs are negotiable unless otherwise required by the contract or law.
Can I ask for a price reduction instead?
Potentially.
Can I walk away?
During the due diligence period, the buyer can terminate the contract for any reason, or no reason.
BlueCoast Local Perspective
A bad inspection report doesn't automatically mean bad house. Sometimes it means bad information you needed to know before buying.
BlueCoast can help you evaluate the transaction implications while your inspectors and other professionals evaluate the property itself.