Inspections are an important part of home buying, but the
inspection process can be nerve-racking for both buyers and sellers. Both
parties want the deal to go through without a hitch. However, sometimes
problems surface that the buyers weren't aware of when they entered into
contract.
All houses have defects, even new ones. So it should come as no surprise when
defects are discovered. The pertinent issues are: Is there a problem? How
serious is the problem? How much will it cost to repair?
A home inspector may have a contractor's license. But, few inspectors also are
engineers, architects, and plumbing, heating, roofing, wood pest (termite) and
drainage contractors. Nor are they pool, spa, sprinkler or security-alarm
specialists. For this reason, most home inspection reports are loaded with
disclaimers and recommendations to contact the appropriate specialist to
evaluate the severity of a problem.
HOUSE HUNTING TIP: It's highly recommended that buyers follow up with further
inspections, and get estimates to repair defects that are a concern before
removing an inspection contingency. An inspection contingency protects the
buyers, but only if they carry through and complete necessary inspections.
Don't be surprised if a second opinion confuses rather than clarifies an issue.
For example, a home inspector might be concerned about the internal mechanics
of an older furnace. And, he may not have the expertise necessary to say with
confidence that there is no problem. So, he recommends that the buyers consult
with a licensed heating contractor.
Just because an inspector suspects there might be a problem doesn't mean that
one exists. Several years ago, buyers of an older home in the Oakland Hills
east of
The buyers called in a heating contractor who inspected the furnace and said
that it needed replacing. The buyers were disappointed, but wanted to continue
with the sale. So they asked the sellers to share in the expense of a new
furnace.
The sellers weren't convinced that the furnace needed replacing. And they
didn't want to contribute to the cost of a new one if it wasn't necessary. They
contacted a second reputable furnace contractor who inspected the furnace and
said it was fine and didn't need replacing.
To resolve the dispute, the buyers and sellers agreed to call in an inspector
from the local utility company who would have red-tagged the furnace and put it
out of commission if it was dangerous. The verdict was that the furnace was
fine and had years of life left.
More and more, sellers are having their homes inspected by professionals before
putting their homes on the market. This is done so that sellers have an
opportunity to make repairs before marketing or for disclosure purposes.
It is risky for sellers to hide a bad report from buyers. There have been cases
where sellers chose not to give the buyers a report they didn't like. Later,
the buyers coincidentally called in the same contractor for an opinion who
informed the buyers that they had already done a report on the house for the
sellers.
Lawsuits have resulted from sellers withholding detrimental reports, although
disclosure laws vary from state to state. Check with a knowledgeable real
estate attorney for answers to questions about a seller's disclosure
obligations.
THE CLOSING: Sellers who aren't pleased with a report should consider getting a
second opinion and disclose both reports to the buyers.