What is the BINSR Report?
It’s the Buyer’s Inspection Notice & Seller’s Response and if you’re selling your Arizona home you NEED these tips…
Hey there, 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 REALTORS® we have worked with a number of families to ensure a smooth sale of their home. A lot of work goes into getting your home ready to sell and one of the key pieces is navigating the BINSR process.
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 the Buyer has completed all of their desired inspections, now what? Now, they will complete the first page of the BINSR. The Buyer has 3 options, they can:
- Accept the premises, as is
- Reject the premises all together, OR
- They 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 the Buyer finds out that there is a sex offender living next door and they have small children, there is really no amount of work that you, as the Seller, can do to make the home acceptable to them and therefore they will likely cancel the contract. Option #3, giving the Seller the opportunity to correct the disapproved items is hands down the most common thing we see.
In this case, the buyer will list the items they want the Seller to fix and they will usually make reference to their inspection report or reports.
Now, for the rest of this video, let’s assume the Buyer went with option 3 and they have given you a list of things they want you to repair, replace, or correct. You, as the Seller, now have 3 options. You can:
- Agree to complete all of the items they are asking for
- State that you are unwilling or unable to fix any of the disapproved items, i.e. you outright reject their request for repairs, OR
- You can respond with a list of things you will and will not repair.
Again, option 3 is most common, but the choice is yours. If you select options 2 or 3 the Buyer still has the opportunity to cancel the contract, so it is VERY important that you approach these negotiations carefully and thoughtfully. You do not want to lose the sale of your home because you are refusing to make a small repair, but at the same time you don’t want to do more than what is reasonable for the price of your home.
So, what are our top 5 tips for Sellers for successfully navigating the BINSR process?
#1: Stay on top of regular maintenance & repairs
If you stay on top of maintenance and repairs while you own the home and keep it in good condition, there will be less for the buyer to ask to correct, and the less they ask for, the better! If you haven’t done a good job of maintaining your home, you may want to have it inspected prior to listing and make some (or all) of the repairs they suggest.
#2: Keep in mind that no home is perfect…. INCLUDING YOURS!
Don’t set your expectations too high and hope that the buyer’s won’t ask for anything, that is unrealistic and is sure to lead to disappointment. Instead take a look at your budget, and decide what you can realistically invest in repairs to get the sale to go through. Keep in mind that in most cases it is better to make it work with the buyer you have, rather than having to put the home back on the market.
#3: Don’t take it personally
This one can be tricky, especially if they are asking you to fix something that you have lived with the whole time you owned the home. As hard as it is, put your feelings aside and shift into business mode. This is a business decision and should be treated as such. If you were in their shoes you would probably be asking to have some things repaired as well.
#4: Get Estimates Before Responding
Sometimes BINSR repair requests look long and scary when you first see them, and your first instinct may be to get offended and refuse. Take a step back, breathe, and take the time to get quotes for the items they are requesting. You have 5 days to respond to the Buyer’s requests, so take your time. You might be surprised that the items they are asking for don’t cost nearly as much as you think.
#5: Keep it in Perspective
This one is tricky too, but it is so important. As I mentioned before, you don’t want to lose the sale of your home because you refused to make a $20 repair, but you also don’t want to spend way more than is necessary. When thinking about how much you are willing to spend on repairs you want to think about how much it will cost to put your home back on the market. There is a cost associated with the time you lost on the market and there are also are costs associated with having to keep the house and all of the associated expenses for longer. Be realistic and sensible when responding on the BINSR.
So, there you have it! If you haven’t already grabbed your copy of the BINSR document, click here.
See you next Thursday!