| Resource Center | |
 | |
| Article Marketing | |
| |
| Landlord Services | |
| |
| Rental Specialist | |
| |
| Managing The Property | |
| |
| Financial Planning for Owners | |
| |
| Current Market Conditions | |
| |
| Real Estate Buyers and Sellers | |
| |
| Home Improvement | |
| |
Inspection Issues By Ed Chaparro Platinum Quality Author You really should never buy a home without at least performing a basic professional home inspection. After all the inspections are completed you will receive a report identifying various uncovered issues. This is a critical juncture because deals can fall apart shortly thereafter. Its not unusual for buyers and sellers to disagree on what issues warrant attention. If they cannot come to a mutual agreement the deal can die or at the very least poison the air making all subsequent communications a little less pleasant and cordial. Sometimes the problem is unreasonable sellers, but other times its the buyers demanding too much. Many buyers, especially first-time buyers, are unsure which issues to ask the seller to resolve. The balance of this article is intended as a guide to assist buyers with the evaluation of inspection issues. Before discussing which inspection issues buyers should ask sellers to resolve, let me explain that I have never seen or heard of any inspector that didnt find something to complain about. My comments are not intended to be disrespectful. Inspectors are an important and necessary part of any home purchase. My only point here is that inspectors ALWAYS find something, even when a home is completely new. So, dont be shocked or dismayed if the inspector you hired uncovers issues warranting attention. Thats what they do. Its normal and, unless something very serious and major is uncovered, nothing to be overly concern about. I think its best to start by pointing out those inspection issues that are generally considered to be the responsibility of the seller to resolve. These issues fall under the following categories: 1. Safety Issues (e.g., nonworking circuit breakers, radon). 2. Code Violations (e.g., any violation of local building codes). 3. Structural Problems (e.g., broken floor beams). 4. Pest Problems (e.g., termites). 5. Liability Issues (e.g., broken pavement, underground oil tank). Buyers are generally well within their rights to demand resolution of problems falling into any of the above categories. One gray area that can be a potential source of disagreement is big ticket items that are near the end of their engineered life. Two examples come to mind: (1) a roof that is not leaking but is nearly twenty years old and due for replacement in the near future. (2) A furnace that is functioning but also near the end of its engineered life. Its these gray areas that often are the most difficult to resolve. Sellers will sometimes take the position that its not broken and no action is required. On the other hand, buyers dont want to be stuck with large maintenance expenses shortly after moving in. My personal view is that both parties need to compromise here. Buyers shouldnt expect the seller to provide brand new expensive components that will last for decades. But sellers shouldnt pretend these items can be ignored just because theres no immediate problem. The easiest compromise is for the seller to grant a credit to partially offset the replacement cost of major components in the near future. How much of a credit is negotiable. If the price of the home has already been discounted, the seller may not be willing to extend a credit. As you can imagine, it can be quite difficult to get both parties to mutually agree on the resolution of some inspection issues. Buyers should generally stick with the major categories I previously mentioned. Anything beyond this scope is negotiable. What you should not do is nitpick and expect every single line item in the inspection report to be fixed. This is not an opportunity to renegotiate the price. I was involved in one transaction once where the buyer produced a letter, via his lawyer, demanding 75 items to fix. The buyer then said that they would accept a $60,000 credit in lieu of any repairs. It was pretty clear to me that the buyer decided that they either (a) didnt want the house or (b) would try to steal the house. That deal died shortly thereafter. The seller found another buyer and the house was sold in 45 days. I subsequently learned that the seller was prepared to grant the first buyer a $20,000 credit. But, they didnt even offer it because they felt the buyer was acting in bad faith. Be reasonable and fair. In summary, buyers should generally limit repair requests to safety, code violations, structural, pest problems and liability issues. Items above and beyond these issues are negotiable. The purpose of the inspection is to prevent you from purchasing a home that has significant problems which the seller may be unaware of. Do not use inspections to renegotiate terms. Thats not their purpose. Ed Chaparro is a licensed New Jersey real estate agent with Prudential New Jersey Properties servicing Middlesex, Union and Somerset Counties. Ed Chaparro has over twenty years of experience working with technology and putting it to use to help people and businesses. Ed Chaparro mixes traditional real estate marketing (MLS, signs, direct mail) with a very aggressive Internet marketing plan that maximizes the number of buyers reached. For buyers, Ed Chaparro provides methods and communications that enable them to view their options in manner that is efficient, informative and free of any hard-sell tactics. This approach has garnered Ed Chaparro a great deal of buyer loyalty. For more details and information please visit http://www.EdChaparro.com Article Source: http://EzineArticles.com/?expert=Ed_Chaparro
|
