Typically, what must a house inspection yield for buyer to get back earnest money?

Question

I feel I was initially misinformed about getting my earnest money back after an inspection. Tonight, the buyer's agent says I would only get the earnest money back if the inspection yields problems that would cause harm to occupants of the house. The seller has $900 available to fix any problems. What I'm thinking is that's NOT a whole lot to have available. I'd rather tell him to keep his $900 and take that off the purchase price so I don't have to finance that money. This is the same reason I'm paying closing. I'd rather pay for it upfront than finance it for 30 years and pay ridiculous amounts of interest. I feel a little misled at this point and I'd like someone to shed some light on this. The buyer's agent, even when questioned at length, did a terribly poor job with her explanation. Please help!

oakhill · Accepted Answer

Typically, the buyer will state in an offer agreement something to cover an inspection and what the limits would be. The seller can either accept or reject the offer. The exact answer will completely depend on what the offer agreement stated. If it states"if the inspection yields problems harmful to occupants", then the buyer's agent is correct. If the agreement offer says something else, that is what is legally binding. You would not want to just accept $900 from the "seller" to cover unknown needed corrections to the home. If the "buyers" agent is not performing their duties, i.e. your agent, then you as a buyer should get another agent if you can get out of this situation.

Brad T · Answer

keep in mind that you can submit an inspection response to the sellers addressing any issues after the inspection.  if they don't address the issues to your liking, you should be able to get out of the contract retaining your earnest money.  

btw: why don't you have your own realtor? as a buyer, you should not have to pay anything for their services, it will come out of the sales price.  right now the sellers agent (or company) is getting the full 6% commission so they want the highest sales price possible.

Campo · Answer

Earnest money is just insurance that you will close the deal.  If you are backing out of the deal because of the house not passing inspection, then you should get the money back.  If you are going ahead with the deal, then the earnest money goes towards the purchase.

frankie b · Answer

You should get your money back if the inspection comes up with something of "deficient condition that adversely effects the value of the home" Example, roof, foundation cracked, failed boiler ect.
This does not mean if the toilet runs or the faucet drips yo can back out. The seller is not forced to make any repairs, and if the are minor, you will have to deal with it.
Good luck,
RE Agent,
Remax

suire · Answer

a lot extra now as an older guy than while i replace right into a lot youthful. I take a catalogue of places i'd desire to end for the errands and a catalogue of the flaws that i'd desire to purchase. wallet & funds. keys. sunlight colorations. cap or hat. cellular telephone. handle or mapquest instructions if taking the canines then pup luggage pup treats the folding pup water bowl Oh, I forgot the spouse.... lol

Judy · Answer

A serious defect that the buyer can't or won't fix.  Of course, "serious" in that context can be open to interpretation, and to litigation.

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Typically, what must a house inspection yield for buyer to get back earnest money?

6 Answers