What Buyers and Sellers Need to Know
Most buyers expect a home inspection to find something. Usually it finds quite a few things. That does not mean the house is bad, and it does not mean the seller is expected to fix everything. Think of the inspection report as a chore list for the house. Some items may need immediate attention, some may be normal maintenance, and some may not matter much to the buyer at all.
The Residential Buyer’s Inspection Notice and Seller’s Response, commonly called the BINSR. The BINSR is the standard form used for the buyer’s formal response after completing due diligence. It is not the inspection report. It is the buyer’s formal response after completing due diligence.
The Inspection Period Is for Due Diligence
The standard Arizona REALTORS® Residential Resale Real Estate Purchase Contract provides a 10-day inspection period unless a different period is written into the contract. The buyer and seller can also extend the inspection period if they mutually agree to the extension in writing. The important point for the buyer is that a decision must be made before the inspection period expires. Alternativlely an extension may be mutually be agreed upon ber and seller
A general home inspection is usually an important part of due diligence, but other questions may come up along the way. Depending on the property and what is discovered, the buyer may want additional information about the roof, HVAC system, plumbing, sewer or septic system, pool, termites, insurance, permits, property boundaries or another concern. The Seller’s Property Disclosure Statement, or SPDS, is part of the picture too. The SPDS advises the buyer what the seller knows about the property. It may point to something that deserves a closer look. The goal is to put the pieces together before deciding what, if anything, needs to go on the BINSR.
Failing to act or obtain a mutually agreed written extension before the inspection period expires has a consequence: the buyer proceeds without requiring the seller to correct or address the items the buyer disapproves of.
The Buyer Has Four Choices
Once the buyer has completed due diligence, there are four practical choices:
- Accept the property as it is.
The buyer decides the inspection findings do not require anything further from the seller and moves forward. - Cancel the contract.
The buyer can cancel based on specifically identified items the buyer disapproves of, as provided by the contract. When the buyer properly and timely cancels under the inspection provision, the contract provides the earnest money to be released to the buyer. - Ask the seller to correct or address certain items.
The buyer identifies the issues that matter and gives the seller an opportunity to respond. - Do nothing.
If the buyer does not act before the Inspection Period expires, the buyer proceeds with the purchase. The buyer gives up the right to request repairs or other action on the disapproved items.
Doing nothing may feel like avoiding a decision, but under the contract it has a result. That is why the inspection-period deadline matters just as much as the inspection itself.
The Seller Has Four Choices Too
If the buyer gives the seller an opportunity to correct or address certain items, the seller also has four practical choices. Under the standard contract, the seller normally has five days after receiving the buyer’s notice to respond unless a different response period is specified.
- Agree to the buyer’s request.
The seller agrees to correct or address the items requested. - Refuse the request.
The seller decides not to correct or address the requested items. - Offer something different.
The seller may agree to some items but not others or propose another way to address the buyer’s concerns. - Do nothing.
If the seller does not respond on time, the seller is treated as refusing the buyer’s requests.
An inspection does not create an automatic repair list. The buyer decides what to raise, and the seller decides what to accept. Doing nothing is also a choice, with consequences under the contract.
Then the Decision Comes Back to the Buyer
What happens next depends on the seller’s response:
- The seller agrees to everything requested.
The transaction moves forward, and the seller is responsible for what was agreed to in writing. - The seller refuses, agrees to only part of the request, offers something different or does not respond.
The buyer can accept the seller’s response and continue with the purchase or cancel within the allowed contract time. Under the standard contract, the buyer generally has five days. If the seller responds before the seller’s deadline, the buyer’s five-day period starts with that response. If the seller does not respond, it starts when the seller’s response period expires. - The buyer does nothing after the seller does not fully agree.
If the buyer does not cancel on time, the buyer proceeds with the purchase without the requested corrections.
This is why the BINSR is better viewed as a series of decisions with deadlines, not an endless repair negotiation. Each side gets a turn to decide. Once a deadline passes, some choices may no longer be available.
The BINSR Is Not an Open-Ended Negotiation
The BINSR should not be treated as the opening offer in a repair negotiation. The buyer makes one inspection-period notice, the seller responds, and if the seller does not agree to everything requested, the decision comes back to the buyer. At that point, the BINSR gives the buyer the choice to accept the seller’s response and proceed or cancel within the time allowed.
Buyer warning: Do not submit the BINSR expecting to add more inspection items later or simply counter the seller’s response with another BINSR. Complete the important due diligence first, decide what really matters, and understand that once the notice is delivered the process moves to the seller.
Seller warning: Do not respond assuming there will automatically be another round to change what you agreed to. Before agreeing to correct or address an item, understand exactly what is being requested and what you are committing to do.
The BINSR gives each side an opportunity to make a decision. It does not provide unlimited rounds of offers and counteroffers.
It Is a One-Pass Process
The buyer’s inspection-period objections are submitted in one notice, so it makes sense to complete the important due diligence before sending the BINSR. If the home inspection raises a question about the roof, for example, the buyer may want to investigate that issue before deciding whether it belongs on the BINSR rather than sending the notice first and trying to sort it out afterward.
The same applies to the seller. Before responding, the seller should understand what the buyer is asking for and what agreeing to it will mean. Both sides are better served by making an informed decision than by treating the BINSR as simply another form that needs to be completed.
Deadlines Matter
The BINSR process has several deadlines. The buyer has the inspection period to decide what to do. If the buyer asks the seller to correct or address items, the seller has a limited time to respond. If the seller does not fully agree, the buyer then has another limited period to decide whether to proceed or cancel.
Those deadlines matter because doing nothing does not leave the decision open indefinitely. Once a deadline passes, the contract determines what happens next. Buyers and sellers therefore need to understand not only their choices, but also what happens if they choose not to act.
Keep the BINSR in Perspective
Almost every house has a chore list. Homes need maintenance, parts wear out, and even a well-maintained house will usually have things that could be repaired or improved. The purpose of the BINSR is not to turn every inspection comment into a seller repair or make an older house new.
For the buyer, the goal is to complete due diligence, understand the property and focus on the issues that truly matter. For the seller, the goal is to understand what the buyer is asking for and decide what makes sense.
The most useful way for both buyers and sellers to understand the BINSR is to remember one thing: it is a series of decisions with deadlines, not an endless repair negotiation. Each side gets a turn to make a decision, but once a deadline passes, some choices may no longer be available.
