I get this question all the time. In some states this might very well be the case, but not in North Carolina. So what can a buyer expect in NC after the inspection report comes back?

Let’s begin by looking at North Carolina’s Offer To Purchase And Contract.

“(d) Repair/Improvement Negotiations/Agreement: Buyer acknowledges and understands that unless the parties agree otherwise, THE PROPERTY IS BEING SOLD IN ITS CURRENT CONDITION. Buyer and Seller acknowledge and understand that they may, but are not required to, engage in negotiations for repairs/improvements to the Property. Buyer is advised to make any repair/improvement requests in sufficient time to allow repair/improvement negotiations to be concluded prior to the expiration of the Due Diligence Period. Any agreement that the parties may reach with respect to repairs/improvements shall be considered an obligation of the parties and is an addition to this Contract and as such, must be in writing and signed by the parties in accordance with Paragraph 19.“

STANDARD FORM 2-T 7/2020

By signing the offer to purchase and contract, the buyer acknowledges that the property is being sold in it’s current condition and that a seller is not required to make any repairs/improvements. So from the very get go, a buyer is informed about this situation. Many buyers are not happy about that statement, but that is just how it is here in NC.

Now, that’s not to say that every seller will refuse to make repairs/improvements. There is a form called the Due Diligence Request And Agreement in which the buyer and seller can come to a contracted agreement on what repairs/improvements will be made by the seller. Many sellers agree to make at least some repairs. A seller may also opt to negotiate a credit to be given at closing or even reduce the purchase price by a determined amount in lieu of making the repairs.

If a seller truly intends from the onset not to make any repairs, the MLS will often state that the “property is being sold as is – no repairs”, or something similar to that. I have also had one other situation when a seller gave such a large cut from list price to sales price that they said no repairs would be made, but such drastic reductions in sales price rarely happen in the current market.

Keep in mind that everything stated above applies to buyers with conventional loans. VA, FHA and USDA loans operate a little differently, and that is why the offer to purchase asks the buyer to specify what kind of loan a buyer will have. For any government backed loan, anything deemed “unsafe” in the inspection report will need to be addressed before the loan is granted. Sellers with multiple offers may choose a buyer with a conventional loan over a buyer with a government backed loan because they know that the government backed ones are stricter on repairs, appraisals, etc.

So there you have it folks. Just because buyers are signing a contract that says they are buying a home in it’s current condition doesn’t always mean that repairs/improvements won’t be made. In most cases, sellers are kind and negotiate at least some repairs or financial concession in lieu of the repairs. It’s just good to be educated as a new buyer in this market and set your expectations accordingly.

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Relocating to the Cary area? Click here for the Cary Relocation Guide.

Thinking of selling your home? Click here for the Seller’s Guide.

Learn More:

• Click here to learn more about the Due Diligence Fee.
• Click here to learn more about the Earnest Money Deposit.
• Click here to learn more about the benefits of having a buyer’s agent.
• Click here to learn more about the benefits of having a seller’s agent.

Happy Home Buying & Selling In North Carolina!