BINSR: The form for Arizona home buyers and sellers to negotiate repairs
Home inspection is one of the process when you are buying a home in Arizona. After your offer has been accepted by seller, you will have 10 days to complete your home inspection in normal scenario. After you have completed the inspection, if there are issues that you are not satisfy, you have the option to give seller an opportunity to correct it. So, how do you ask seller to correct it? If you are buying a house with a Realtor, your Realtor will fill up the BINSR form.
What is a “BINSR”?
In Arizona Realtor’s world, BINSR (pronounced as binzer) is refer to Arizona’s Association of Realtors Buyer’s Inspection Notice and Seller’s Response form. This two pages form is one of the form that used in Arizona residential real estate transaction.
Why is it used?
The BINSR is form used by the buyer to give written notice to the seller to request and negotiate repairs to the property. It is the buyer’s opportunity to request any repairs or to address any issues regarding the property with the Seller that may have been discovered during the inspection period. This form is an addendum to the Residential Purchase Contract that allows, in an organized and timely manner for Buyer to request repairs and the Seller to respond.
When is it used?
The BINSR process begins with the Buyer completing and submitting the BINSR form to the Seller during or by the end of inspection period. Buyer only has one chance to present the BINSR. Once it is presented to the seller, buyer cannot present another BINSR. For example, Buyer cannot send BINSR on day 6 during inspection period and send another is day 9. So, think thoroughly and carefully before presenting to the seller.
BINSR process
First part of the BINSR stated Buyer has completed all desired inspection and has verified all information deemed important to buyer. The second part is for Buyer opportunity to ask Seller to repair disapprove items. In this section, buyer has 3 options when completing the form:
There are three options when completing the form:
Buyer’s Option 1: Buyer is satisfied with the property after completing their inspections, Buyer is accepting the property with no repair and move forward with the buying process. In this case, no Seller response is required.
Buyer’s Option 2: Buyer has identified specific disapproved items during their inspections and choose to reject the property and cancel the purchase. By rejecting the property within the inspection period, the Buyer will get back their earnest money unless extenuating circumstances exist. In this case, no Seller response is required.
Buyer’s Option 3: Buyer has identified specific disapproved items during their inspections and buyer is given an opportunity to seller to correct the disapproved item(s). In this scenario, the Seller will evaluate the request and to provide a response.
Alternatively, the Buyer can choose to waive inspections. In this case, the Buyer notifies the Seller of their election to waive inspections and proceed with the transaction.
After presenting BINSR to Seller, Seller also has 3 options to respond:
Seller’s Option 1: Seller agree to correct all item(s) disapproved by Buyer. The transaction process continue to next step.
Seller’s Option 2: Seller is unwilling or unable to correct any of the item(s) disapproved by Buyer.
Seller’s Option 3: Seller is offering an alternative proposal to fully or partially satisfy the requests as outlined.
BINSR timeline
With their agent’s help, buyer can present BINSR any time during the 10 days inspection period. Once seller received the BINSR, the seller has 5 days to complete the evaluation and respond to buyer. With Seller’s response, now it is back to Buyer’s hand. Buyer has 5 days to decide whether to proceed with the transaction with no or partial repairs, alternative proposal or choose to cancel the transaction. If Buyer decided to cancel the transaction with valid reasons, earnest money will be returned to Buyer.
Also read: What is the timeline when buying a home in Phoenix AZ?
The Bottom line
The BINSR process is a negotiation between the Buyer and Seller and can directly affect the success of the transaction. The BINSR period can take most of the time in escrow proces for both buyers and sellers. Many properties may go back on the market after an inspection period where the buyer and seller cannot have a meeting of the minds.
You might be interested: What is a contingency when buying a home in Arizona?
Swee Ng, Realtor and Phoenix East Valley resident specializing in win-win real estate transaction through great communication and fighting for his clients’ best interest. After all, this is more than real estates, this is about your life and your dreams.
If you are looking to buy or sell your home in Phoenix AZ area, we hope you will consider us. Contact us today for complimentary consultation.
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