What is the BINSR Report?
It’s the Buyer’s Inspection Notice & Seller’s Response… and if you’re buying a home in Arizona, you NEED these tips!
Hey everyone, welcome back! I’m Lindsay, with the Wise Move AZ Team at RealtyONE Group. If you want to stay up to date on all things Anthem and Real Estate then you’re going to want to subscribe to our YouTube Channel. Pro Tip: You’re also going to want to hit that little bell icon so that you’re the first to know when our new videos are posted every single Thursday!
As your Anthem, Arizona REALTOR® I have worked with a number of families to ensure a smooth purchase of their home. A lot of work goes into buying a home and one of the key pieces is navigating the BINSR process. As I mentioned, BINSR is the abbreviated name we give to the Buyer’s Inspection Notice and Seller’s Response Document.
If you want to have a copy of the BINSR document in front of you while I go through these tips, click here, and then come right back and we’ll go through it together.
The BINSR is a two page document that is completed at the end of the Buyer’s Due Diligence Period, which unless otherwise negotiated ends 10 days after contract acceptance.
Okay, so let’s assume you, the buyer, have completed all of your desired inspections, now what? Now, you will complete the first page of the BINSR, with the help of your REALTOR®. You have 3 options, you can:
- Accept the premises, as is
- Reject the premises all together, OR
- You can give the Seller the opportunity to correct any disapproved items.
Option #1 is NOT common here in Anthem. The inspections usually reveal something that ought to be corrected, repaired or replaced, even if it is just something small. Option #2 is not overly common, either. Rarely will the buyer walk-away from the sale all together without giving the Seller the opportunity to correct the things they disapprove of. That being said, we have seen it done. For example, if you find out that there is a sex offender living next door and you have small children, there is really no amount of work that the Seller can do to make the home acceptable to you, and therefore you will likely cancel the contract. Option #3, giving the Seller the opportunity to correct the disapproved items is hands down the most common.
In this case, you, the Buyer, will list the items you want the Seller to fix. This is typically done by making reference to the inspection report or reports.
Now, for the rest of this video, let’s assume that you are going with option #3 and you have given the Seller a list of things you want them to repair, replace, or correct.
The Seller, now has 3 options. They can:
- Agree to complete all of the items you are asking for
- State that they are unwilling or unable to fix any of the disapproved items, i.e. they outright reject your request for repairs, OR
- They can respond with a list of things they will and will not repair.
Again, option #3 is most common, but the choice is theirs. If they select options #2 or #3, the Buyer still has the opportunity to cancel the contract.
No matter which side you’re on it is VERY important that you approach these negotiations carefully and thoughtfully. You do not want to lose the purchase of the home because the Sellers are refusing to make a small repair, but at the same time you don’t want to ask for more than what is reasonable for the price of the home.
So, what are our top 5 tips for Buyers for successfully navigating the BINSR process?
#1: Don’t ask for every single thing on the inspection report
If you’re having trouble fitting all your repair requests in the space provided on the BINSR document, you might be asking for too much. If you list everything that the inspector notes, you risk offending the seller and if you offend the Seller, they may refuse to fix anything. If you ask for everything, it may be perceived that you are expecting a perfect home. Now, I am not saying you shouldn’t ask for repairs. You absolutely should, but if there are things you can live without or things you are just going to replace consider skipping them. For example if the fan is broken but you know you’re just going to replace it, don’t bother asking for it to be corrected.
#2: Get Estimates
If possible, it is always a good idea to get estimates on how much it will cost to fix the things you are asking for, because let’s be honest, for the Seller it is going to come down to money. They want to know how much it is going to cost them to keep this sale. Once you have estimates, take a look at the total, is it a reasonable amount given the price of the home? Also, if you got a really good deal on the home, be careful how much you ask for!
#3: Ask that Repairs be Done by a Professional
This is imperative! For example, if you are asking for roof repairs be sure to specify that you want them done by a qualified roofer. We want to ensure that any repairs are done by someone who knows what they are doing. You don’t want the roof repaired by a handyman with little experience or worse by the Seller who works a 9-5 office job and has never stepped foot on a roof before in their life!
#4: Get Receipts
Ensure that you get receipts prior to closing. These receipts serve a couple of purposes. Firstly, they provide proof that the work was completed. Secondly, they provide proof that the work was paid for. You don’t want to close and find out that a contractor is trying to put a lien on your home for unpaid work. Lastly, the receipts provide details about who completed the work, just in case you need to get in touch with them at a later date. So, get copies of the receipts and keep them in a safe place.
#5: Inspect the Repairs
This is usually done during the final walk-through, which usually occurs 1-3 days prior to closing! Take your BINSR and inspection report with you to the house and go through every item that was supposed to be corrected. I know it’s hard because you are getting so excited about your new home and you just want to measure for furniture, but stay focused! You need to know that the repairs are DONE! If they are not done, say something IMMEDIATELY!
So, there you have it! If you haven’t already grabbed your copy of the BINSR document, click here.
See YOU, next Thursday!