| HOME INSPECTIONS
Q. What is involved in a home inspection?
A. A professional home inspection can vary among localities,
but, generally, the aim is to discover any problems with the home that
might not be readily apparent. Most inspectors check to make sure there
are no material defects or problems with such items as the electrical,
plumbing, heating, and air-conditioning systems. The inspector also may
check for termites, the age of the roof and when it might need replacement,
condition of the basic structure including the foundation, evidence of
basement seepage, and other problems. Some inspectors check for radon
concentrations, lead paint, or other environmental hazards.
A professional inspection should not be alarmist. The idea is to point
out problems without
exaggerating defects. It's a good idea for the buyer to accompany the
inspector during the
inspection. In this way, the buyer is able to ask questions and to get
an idea of the cost of any
repairs that are necessary or advisable. Further, the inspector also may
suggest ways to better
insulate the home or offer maintenance suggestions that can prolong the
life of operating systems such as heating and air conditioning.
Most buyers do not want to pay for an inspection until they have settled
on other terms
with the seller. To do this, the buyer often uses an inspection rider
to provide that the offer to buy is contingent on a favorable inspection
of the home.
What to Expect from the Home Inspection
The buyer normally hires a contractor or home inspector to check out
the home. The inspector
does not care about cosmetic problems that the buyer could easily
see such as peeling wallpaper, torn carpet, or flaking paint. The
inspector shows an interest only in the structural and mechanical
aspects of the home, looking for problems that a buyer is unlikely
to notice. These include termite damage, foundation and structural
problems, and the age and condition of the roof. The inspector also
will examine the condition of the chimney, storm windows, gutters,
electrical wiring, and plumbing.
If possible, you will want to accompany the inspector and take notes.
Some inspectors
charge a smaller fee if the potential buyer does not require a written
report. However, be aware that a written report may be required if
the buyer intends to cancel the purchase contract because of defects
revealed by the inspection.
Inspection fees vary based on such factors as the size and type of
building inspected. As a
general rule, anticipate a fee somewhere between $250 and $500. |
Q. What should the buyer do if the inspection uncovers material
and costly defects?
A. There are several choices. Although the inspection rider may
simply allow you to walk away
from the purchase, this may not be desirable, especially if the home has
other qualities you are
seeking. One alternative is to negotiate with the seller to lower the
previously agreed-upon price.
For example, if the seller was unaware that the furnace was corroded and
in need of replacement or that there was rotting timber that needed replacement,
he or she may be amenable to reducing the purchase price by the estimated
cost of repairs. Alternatively, the price could remain the same with the
seller repairing the problem at his or her expense.
While some buyers use an inspection to extract further concessions from
the seller, it's
unlikely that a seller is going to agree to reduce the cost of a home
to reflect the cost of correcting minor problems such as a repairing a
porcelain chip or replacing peeling wallpaper or worn carpeting. A seller
facing a long list of minor repairs the buyer wants made before closing
may want to end negotiations unless he or she has no other alternative
than selling the home to this particular buyer.
Q. What can the seller do if he or she disagrees with an inspection
report?
A. Your response as a seller to a negative inspection report
will depend on the buyer. Sometimes, such a report may scare away the
buyer. If you strongly disagree with the inspection, you may want
to obtain your own written inspection, copies of which you can provide
to prospective buyers.
One response to a negative inspection report is negotiating a resolution
to the problems
discovered by the inspector. For example, if the inspector discovers that
your home has inadequate or outdated electrical wiring, the seller may
offer to have the wiring updated or to reduce the price by an agreed-upon
sum to cover the buyer's costs of updating the wiring.
As a seller, you should be aware that some homebuyers will take any problems
and turn
them into major roadblocks, hoping to force an anxious seller to reduce
the selling price. If you
find yourself dealing with such a buyer, you may be better off to simply
refuse further negotiations, let the offer expire, return the buyer's
deposit, and place the home back on the market. But, if you believe that
the buyer's complaints are without merit, you could insist on compliance
with the purchase contract; this, however, could lead to a lawsuit.
Q. Should a seller get a home inspection?
A. If you are worried about possible problems in your home, it
may be a good idea to pay for an inspection before you put your house
up for sale. The inspection would allow you to take a look at your home
from a buyer's perspective and allow you time to fix any problems or reduce
your asking price.
Most buyers will probably want to pay for their own inspections. If you
do share your presale
inspection report with a buyer, be sure to provide the entire report;
otherwise, a court might
construe that you intentionally withheld negative information.
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