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Traversing the Pitfalls of Home Inspections
June and Fred Smith were diligent about getting their home ready for
sale. They ordered a pre-sale termite inspection report. The report
revealed that their large rear deck was dry-rot infested, so they
replaced it before putting their home on the market.
The Smiths also called a reputable roofer to examine the roof and
issue a report on its condition. The roofer felt that the roof was
on its last legs and that it should be replaced. The Smith's didn't
want buyers to be put off by a bad roof, so they had the roof
replaced and the exterior painted before they marketed the home.
The Smith's home was attractive, well-maintained and priced right
for the market. It received multiple offers the first week it was
listed for sale.
But the buyers' inspection report indicated that the house was in
serious need of drainage work. According to a drainage contractor,
the job would cost in excess of $20,000. Fred Smith was particularly
distraught because he'd paid to have corrective drainage work done
several years ago.
First-Time Tip: If you get an alarming inspection report on a
home you're buying or selling, don't panic. Until you see the whole
picture clearly, you're not in a position to determine whether you
have a major problem to deal with or not.
What happened to the Smiths is typical of what can happen over time
with older homes. The drainage work that was completed years ago was
probably adequate at the time. But since then, there had been
unprecedented rains in the area, which caused flooding in many
basements. Drainage technology had advanced. New technology can be
more expensive but often does a better job.
The Smiths considered calling in other drainage experts to see if
the work could be done for less. After studying the buyers'
inspection report, the contractor's proposal and the buyers' offer
to split the cost of the drainage work 50-50 with the sellers, the
Smiths concluded that they had a fair deal.
The solution is not always this easy, especially when contractors
can't agree. Keep in mind that there is an element of subjectivity
involved in the inspection process. For example, two contractors
might disagree on the remedy for a dry-rotted window: one calling
for repair and the other for replacement.
Recently, one roofer recommended a total roof replacement for a cost
of $6,000. A second roofer disagreed. His report said that the roof
should last another three to four years if the owner did $800 of
maintenance work. Based on the two reports, the buyers and sellers
were able to negotiate a satisfactory monetary solution to the
problem for an amount that was between the two estimates.
It's problematic when inspectors are wrong. But it happens.
Inspectors are only human. A home inspector looked at a house in the
Oakland Hills and issued a report condemning the furnace, which he
said needed to be replaced.
The sellers called in a heating contractor who declared that the
furnace was fit and that it didn't need to be replaced.
The buyers were unsure about the furnace, given the difference of
opinions. The seller called in a representative from the local gas
company. The buyers knew that the gas company representative would
have to shut the furnace down if it was dangerous. He found nothing
wrong with the furnace, and the buyers were satisfied.
In Closing: Sometimes finding the right expert to give an
opinion on a suspected house problem is the answer.
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