A buyer of mine just bought a house that was for sale by owner. Nice sellers. Nice house. They have been very easy to work with so far.
Being unfamiliar with the contract that all the realtors in this area use, they did not like one part about the termite inspection. It was the part that says the seller has to pay up to 1% of the sale price to repair termite damage if any is found.
They said they didn’t want to be on the hook for that much. I get it.
However, this clause benefited the seller just as much as it did the buyer.
I’ve sold hundreds of houses and been involved in the inspections for all of them. I have only seen 3 houses that had extensive termite damage. All were in houses where the sellers had lived there for decades and never done a termite inspection. It is pretty rare to find termite damage. Most of the time if there is any damage, it only costs a few hundred dollars to repair.
Let’s say there is some termite damage at this house and my buyers decide they do not want the house any more.
In this case, the seller would have been very happy to say to the buyer “No, you can’t walk away from the sale. The contract says you have to let me fix it and by golly, I am gonna fix it.” The seller would want to use this clause in the contract to keep the sale together.