Home Inspections
About Termites
Most real estate offers require an inspection by a licensed exterminator to determine that the house doesn't have termites or other wood boring insects. The inspector will look for two things in deciding whether or not to pass a house--an active infestation and evidence of a past infestation.
If your house does not pass the termite inspection, get a list of qualified exterminators from your Realtor. Find out the treatment options they offer and their charges for the service. Exterminators are usually quite competitive. If your home was treated for a past infestation, the company which performed the extermination may be willing to re-certify your home without a second treatment. Arrange for the termite inspection as early as possible, so you will have time to determine the best way to get rid of them, if they are found.
Careful Inspections
Many home buyers today are investing in a professional structural inspection before they finalize their purchase of a home. You should choose an inspector carefully and be prepared to learn important facts about your new home that could save you money.
When you have a ratified sales agreement, the Realtor will set up an appointment for you to see the home with the inspector. Bring a notebook, even though you will get a written report of the inspection. Write down any questions or concerns that may occur to you as you tour the house, such as cracks in the walls, spots on the ceiling, or noises in the air conditioning system. And remember that no house is perfect. You should come away from the inspection with a good understanding of what you are buying and how much the maintenance will cost.
Final Inspection
Before you close on your new home, you will make a "walk-through" inspection to ensure that the property is in the same condition as it was when the purchase agreement was drawn up.
Some sellers convey the appliances and major systems "as is," offering no promise that they will be in working order. Other agreements require all of the major mechanical systems, such as heating, plumbing, and air conditioning, to be operational. It depends on the terms that are negotiated between the buyer and seller.
During this inspection you should check the appliances by turning each one on and letting it run a full cycle. This gives you a chance to make sure that any repairs that were to be made by the seller prior to the closing have been made. These details are much easier to work out before or during the closing than after you have taken possession of your new home.
Home Inspections
You have just found the "perfect" house, but it is important to remember that it may not be perfect. You should have a structural inspector go over the house from the foundation to the roof so that you can make an informed decision.
A structural expert can give you crucial information about the plumbing, wiring, heating and air conditioning systems. He will check the roof, give you an indication of the condition of the appliances, and help you set up a long-term budget for replacement and repairs. The inspector can also show you where the water cut-off valve and circuit breakers or fuse box are located.
Your Realtor can advise you about how to include an engineering inspection in your offer to purchase and give you the names of inspectors in your area. The purchase of a home is a major investment, and the cost of an inspection is well worth the peace of mind it provides.
If It's Broken...
Most houses have a few "little" problems, like leaking faucets, a stove burner that won't light, or electrical outlets with too much "spark". These defects may not seem very important--unless your house is about to go on the market.
We rarely have difficulty getting sellers to agree to paint, replace worn carpets or plant a few flowers in the front yard. These kinds of repairs obviously increase the overall appeal of the property. However, if any of the major systems in your home need maintenance, be sure to have the necessary repairs made. It is also a good idea to have your furnace, central air-conditioning system, plumbing and wiring checked as part of your pre-marketing efforts. The best rule is--if it's broken, fix it!
The purchase agreement requires that a house be conveyed with all the systems in working order, and most buyers will bring in a home inspector to identify any problems. During the period of time between the "meeting of the minds" and the removal of the inspection contingencies, the buyers are the most vulnerable to an attack of buyer's remorse. This is also the time when anything that hasn't been repaired could become a major issue.
Inspection Contingencies
Many purchase offers today have a contingency clause which allows the buyers to have an inspector or professional expert to inspect the property. If there is a significant defect in the property, the buyer can cancel the contract without losing the earnest money deposit. Such contingencies may make a seller nervous, but they are an excellent procedure for both the buyer and the seller.
The time period for inspection contingencies is negotiable. In most parts of the country, the buyers have about a week in which to cancel the contract if the structural inspection reveals a serious and consequential defect.
The positive side to such contingencies--the inspection usually addresses--and overcomes--the buyers' misgivings and confirms their decision to move ahead with the purchase.
Inspection Repairs
When you sell a house, the buyers will probably have a home inspection before they are contractually obligated to purchase the home. The inspector may turn up something that needs attention or repair, and after the inspection, the buyers may produce a list of items they want repaired as a condition for moving forward on the sale.
When you get the buyers' list, remember that some of the items may be negotiable. Sales contracts usually require that all the systems be in working condition. Some buyers may make requests that go beyond the normal obligations of the seller. They may ask for a new roof or certain structural repairs that you may not want to make. Your agent can help you to assess the risks of just saying "no" to buyers who are making demands you consider to be unreasonable. You may just decline the requests, but the buyers may back out of the deal as a result. When you agree to make repairs, hire licensed professionals who will back up their work and give copies of the receipts to the buyers. Arrange to have the repairs made as far ahead of time to avoid last-minute complications which could compromise the transaction.
Inspections
Your Realtor's job is to find the perfect home, in the right location and with all of the amenities you want--and at the right price. It is the home inspector's job to find any skeletons in the closet, or more likely in the plumbing, wiring, roof, basement and beams.
The inspector won't pass or flunk a house based on what he finds, but will go over the house thoroughly to help you understand what it is you are buying. If there are any serious problems, and if they are reflected in the price, your inspector can give you a realistic idea of how much the repairs will cost. If there are surprises, you will have the opportunity to re-open negotiations with your sellers before you commit to the purchase. A good inspector will also explain how some of the basic emergency systems work, such as the main water cut off valve and the circuit breaker box, and go over the items that will need routine maintenance. If you are buying a house, we recommend that you make a professional home inspector part of your home purchase team.
Real Estate Repairs
In most real estate transactions there are a few responsibilities that the sellers have to handle before the closing, such as repairs and termite extermination. The deadline for completing these obligations usually coincides with the actual closing. Many sellers barely make that deadline. Those who wait until the last minute to handle these matters may miss the deadline altogether or pay high rates in order to get a plumber, roofer or electrician on an emergency basis.
Your buyers will probably get a structural inspection done after the contract is ratified. Within 10 days of the contract's acceptance by all parties, the pest inspection should be scheduled. Even though sellers usually know well in advance what is needed, they sometimes put things off until the buyers have finalized the loan approval process. Since these repairs will have to be made anyway, it is a good idea to get them done promptly.
Real Problems!
The structural inspector has just handed you a twenty-five page report! Your "perfect" house isn't really perfect after all. It's "Old World" charm extends to the heating and plumbing systems and the roof leaks when it rains. What should you do--back out of the deal or try to re-negotiate your purchase agreement with the sellers?
Your strategy should depend on several things. Did you know about the problems when you made your offer? Did you make an offer at the top of the market? Did the sellers build some room into the asking price with the understanding that their house was a handyman's dream? Most structural inspections turn up at least a few items that need attention, but they occasionally reveal major defects. The inspection clause in your contract has a time limit. If you really like the house, you should consider re-negotiating with the sellers before backing out of the agreement. The next "perfect" house could have the same, or similar, issues.
Serious Inspections
When you are involved in the process of buying a home, it is safe to assume that you will probably find one that you like, make an offer, and purchase it. There are many steps along the way, and more and more buyers in the market today want guarantees. Inspections by structural engineers and environmental specialists often turn up something wrong with the property you want to buy. Many sales have been halted or delayed because asbestos, lead, or radon was found on the property.
If a problem has been found with the property you want to buy, ask yourself two questions: 1) Can the problem be fixed? 2) If so, what will it cost to repair it? Some of the following problems could keep you from purchasing a property, if: 1) the house rests on a fault line; 2) the water supply is contaminated; 3) there is a severe crack in the foundation; or 4) the house is located under electro-magnetic power lines.
Structural Contingency
You found a terrific house in the Overland Park area, and like many smart home buyers, you included a structural inspection contingency in your purchase agreement. What happens when you find out that your "perfect" house needs some work? Do you ask the sellers to pay for the repairs? Before you answer "yes", there are some important considerations.
Some contracts require all the systems, such as plumbing, heating, electrical and central air conditioning, to be in working order. In this case, the sellers may be obligated to repair any problems with these systems. Leaky roofs, damp basements, or other structural problems may not be covered, however. If you ask the sellers to make these types of repairs, you may void the contract by doing so. The sellers might prefer to negotiate the repairs to keep from losing the sale. If there are other buyers waiting in the wings with back-up contracts, however, you run the risk of losing the home.
Structural Inspection
If you have a house for sale in the Overland Park area, your buyers will probably include a structural inspection contingency in the contract which will allow them to have an expert check the house and the major systems and appliances.
A professional structural inspector can help buyers to "know" the house and to feel comfortable with it, but the inspection does not result in a pass or fail grade. The buyers will learn important things about the house, such as where the water cutoff valve is located, in case of an emergency. The inspection may also help buyers set up a budget for repairs and determine if they want to invest in cost-effective measures to increase energy efficiency.
Buyers rarely back out of a sale after a structural inspection. Even if there are problems, you have the opportunity to negotiate a compromise and avoid any obstacles that could seriously threaten the sale.
Termites
Most home purchase agreements have clauses that deal with termites. After the agreement is ratified, a termite inspection is arranged. Before the closing can occur, the sellers must be able to produce papers signed by a licensed exterminator stating that the house is free of infestation and any termite damage has been repaired.
Before you sign an agreement to buy or sell a home, you should read the termite clause and be sure that you understand it. Who selects the exterminator and pays for the inspection? If bugs are found, who pays for the treatment? Are the sellers obligated to repair any damage and have they placed a limit of the dollar amount they will spend on those repairs? If treatment is required, the buyers may want a chance to discuss the options with the pest control company, especially if someone in the family is sensitive to the chemicals used to control the termites. Ask about the exterminator's guarantees or service contract options.
The "Perfect" House
You found a terrific house in the Overland Park area, and like many smart home buyers, you included a structural inspection contingency in your purchase agreement. What happens when you find out that your "perfect" house needs some work? Do you ask the sellers to pay for the repairs? Before you answer "yes", there are some important considerations.
Some contracts require all the systems, such as plumbing, heating, electrical and central air conditioning, to be in working order. In this case, the sellers may be obligated to repair any problems with these systems. Leaky roofs, damp basements, or other structural problems may not be covered, however. If you ask the sellers to make these types of repairs, you may void the contract by doing so. The sellers might prefer to negotiate the repairs to keep from losing the sale. If there are other buyers waiting in the wings with back-up contracts, however, you run the risk of losing the home.
The Good Inspector
Structural inspection contingencies are a common feature of offers. A buyer is allowed a certain period of time to have an expert look over the home--the structure, plumbing, wiring, roof, and appliances that they will have a good idea of what they are getting into.
How do you find the right inspector? Look for an expert on pre-purchase home inspections, not simply a renovation contractor or a friend who can tell copper from galvanized pipes. There are specialists in most cities, or you can obtain a list from a Realtor in the Overland Park area. Ask for recommendations from friends who have recently purchased homes. Most inspectors have some background in building or engineering, and have had additional training related specifically to residences. Call several companies, and ask about the background and training of the staff, as well as their rates.
The Home Inspection
You have finally found the home in the Overland Park area that is right for you, but you have some questions about the structure and condition of the home. A home inspection is the best place to get answers to your questions. There are companies that specialize in inspecting new and used homes. Most sellers allow a reasonable amount of time to have the property inspected after the purchase agreement is agreed upon and prior to closing. It is wise to have a home inspection, even if the house is new or everything appears to be in perfect condition.
The inspector can provide important information about the house. Where are the gas and water shut-off valves? How do the circuit breakers operate? What type of routine maintenance should be done for each system? The inspector's fee is an investment that can save you money later!
Walk-Through pt.2
It's the day that you close on the sale of your home, and the buyers are a little cranky. During the walk-through inspection, your dependable old dishwasher stopped midway through its cycle, and the powder room toilet flunked its flush. These situations may cause some anxiety for the buyers and sellers, but such problems are quite common and usually easy to resolve.
Most purchase agreements require that the major mechanical systems and the appliances being conveyed are in working order at the time of the closing. Defects are often discovered during the structural inspection, allowing the sellers have plenty of time to have the repairs made. Occasionally there are last-minute breakdowns or defects that are not spotted until the walk-through inspection. In that case, an agreement can be made with the sellers at the closing to escrow funds for the repair or replacement of the items in question.
