Inspection Issues & Solutions
/As an agent, I’ve attended hundreds of inspections and read through so many inspection reports —whole house, wood destroying insect, sewer scope, structural engineering, septic, you name it! All buyers have different different standards when it comes to issues that arise during home inspections, but almost all of them have the same questions. Does the seller have to fix that? How big of a deal is that? Would you buy this house?
One important thing to consider is that a seller is never obligated to bring a property up to current code (unless it’s new construction or an occupancy permit is pending), and they don’t need to agree to do any repairs before closing. True, refusing to make any repairs can make it difficult for a seller to find a buyer for their property, but they might opt to offer a credit at closing or payments to contractors instead of handling the repairs themselves for a variety of reasons. Not agreeing to repairs doesn’t necessarily mean that a seller is being difficult; some sellers are unable to afford repairs or they are simply afraid that a buyer could still walk even after they’ve sunk the money for repairs.
My top concerns
I always start by checking for major mechanical defects; in fact, those are really the only issues that most buyers and sellers in my area are supposed to be concerned with during the inspection contingency of the contract. I want to know the condition of the exterior of the home, including the roof, windows, doors, and foundation. Is the roof old? You might want to talk to your insurance agent about how that will affect its insurability. Are the windows original, single-paned, and barely operable? Let’s find out how that’s affecting the average monthly utility bill. Cracks in the foundation? Let’s get an expert to tell us how serious that is, how to fix it, and think about how the next buyer will feel about the issue when it’s your turn to sell.
Next, I’m interested in the major systems of the home: HVAC, electrical, plumbing, & sewer. Was it possible to test both heating and cooling, and did they function equally throughout the home? Does the electrical panel look like it was wired by a 9 year old or a pro? Is the hot water taking 15 minutes to get to the shower upstairs? Any roots or breaks in those sewer lines? All of these issues could lead to major expenses down the road, so it’s important to check as thoroughly as possible.
For some buyers, there are other issues that could prevent financing via FHA, VA, or USDA. Even though these wouldn’t normally be considered “major mechanical defects,” we have to consider these as important if you want to move forward with the purchase. Appraisers have a whole list of items to check on for these loan types, but the most common ones I see are missing or non-working GFCI outlets (these should usually be anywhere within 6’ of a water source, the garage, and exterior outlets). Missing handrails on stairs, peeling paint, lack of attic insulation, and deck railings that don’t meet code come up fairly often as well.
Specialized inspections and issues
It’s always a great idea to have a home inspected for wood destroying insects (WDI), which include termites, carpenter bees, and a host of other insects that can cause significant damage to a home over time without treatment. While sellers in Ohio and Kentucky are not required to pay for treatment, it’s a common and reasonable request since most buyers would prefer that any potential damage be minimized sooner rather than later.
Radon inspections have become quite common in our area, thanks to an abundance of this naturally occurring gas in our soil. The test involves taking hourly readings of radon content in the air over the course of two or three days, and mitigation (recommended only if the average reading is above EPA guidelines) involves installing a ventilation system to carry the gas to the exterior of the home where it can be dispersed into the air. Since prolonged exposure to radon gas has been linked to various forms of cancer, it’s not unreasonable to ask a seller to cover the cost of installing a mitigation system, but I have seen several cases of a seller pushing back, either because they don’t agree that radon is a serious issue or because the level was so close to the EPA limit that the test could have been flawed.
Weird, Unusual, & Unfortunate
Most of the time, I can prepare my buyers and sellers in advance for potential inspection issues and both parties are able to come to an agreement. But sometimes there are surprises during inspections that cause a buyer to walk away, or a seller refuses to cover an expense that a buyer simply can’t afford. Here are a few examples over the years of issues that I definitely thought would tank a deal (and sometimes they did):
The sewer scope revealed a serious break in the sewer line between the house and the sewer main, and the estimate to fix it was over $30,000.
A septic inspection revealed that while the system had been passed by the county multiple times, it was in fact discharging into a nearby creek which meant an entirely new system needed to be installed at a cost of around $40,000.
An attic was covered in mold due to a small but ongoing leak and a lack of ventilation, and remediation was estimated at $10,000.
A home had been wired with aluminum wiring, which is no longer used due to fire safety concerns; remediating every outlet, switch, and fixture cost around $6,000.
The rear wall of a home was riddled with termites and termite damage, requiring complete reconstruction at a cost of about $20,000.
Would it surprise you to learn that only ONE of these issues resulted in a cancelled contract? It’s an important reminder that many contracts fall apart during inspections for much smaller issues, because each situation has its own complexities, but if both parties are committed to the same goal it is often possible to find a way through any situation. Be sure to discuss any concerns with your inspector, your agent, and any other experts to make sure you know how you’d like to handle inspection issues and negotiations.
