By Dian Hymer
Inspections are a necessary part of most home purchase transactions. At a minimum, a pest (or termite) inspection and a home inspection are usually done either before or during the transaction. Often these inspections recommend further inspections.
As a buyer, there's really nothing to be gained by overlooking a further inspection. There's potentially a lot to lose. For example, a pest inspection might recommend that test holes be made in the stucco exterior to determine if there is any damage to the framing. If you choose to go ahead with the purchase without having the test holes done, you could be stuck with making repairs at your own expense.
Buyers who find themselves in a multiple-offer competition often shorten contingency time periods to make their offer more attractive to the seller. A five- or seven-day contingency might be time enough to complete a home inspection. But, it may not be enough time to complete further inspections.
Recently, buyers who were under pressure to remove their inspection contingency quickly did so before they had time to collect estimates for correcting a drainage problem. The work ended up costing more than they expected. Fortunately for these buyers, they got a deal on the house and could afford the repair work. But, if you are stretched financially, you could find yourself in a bind if you can't afford to fix a serious defect.
House Hunting Tip: Rather than remove an inspection contingency without complete information about a property's defects, request an extension of time to gather the information. In most cases, it's advisable for sellers to grant such an extension, as long as it's not a frivolous request. To show the seller that your request is made in earnest, you could remove your inspection contingency subject to obtaining the specific information in question. This way, the seller will know that you've accepted the property in all other respects.
More and more, sellers are obtaining inspection reports before putting their home on the market. Buyers can then take this information into account when making an offer. By so doing, the sellers minimize the chance that they'll have to renegotiate the price after the buyers complete their inspections.
Further inspections are often recommended in pre-sale inspection reports. This is particularly the case with older homes that have settled, or lack modern drainage systems, or have outdated foundations. However, many sellers fail to order further inspections, either because of the expense, or because they can't bear the thought of uncovering a problem.
Recently the seller of an older home in Oakland, Calif., obtained a presale home inspection. The home inspection indicated problems with the foundation and recommended consulting an engineer.
The seller put his house on the market without obtaining an engineer's report. The buyers, however, took the home inspector's advice and hired an engineering contractor to look at the foundation. The engineering contractor's report recommended work at a cost of approximately $200,000. The buyers expected the sellers to do a good portion of the work.
The sellers refused and the deal fell apart. Subsequently, several more evaluations were obtained. The house sold a second time, but quickly fell apart due to the foundation issues. The house sold a third time. The third buyers sorted through the various reports and hired a contractor to bid the work they felt was necessary. A reasonable estimate enabled the buyers and seller to reach an agreement.
The Closing: Sellers who obtain further inspection reports have control over who does the inspecting. If the seller in the above example had obtained the engineering evaluation of the foundation and a contractor's estimate for recommended repairs before marketing his home, he would have had a smoother sale.
Copyright 2002-2006 Barry Stone. Distributed by Inman News Features
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