In the very desirable Southern California real estate market, making an offer to buy a home typically entails competing with other real estate agents submitting offers with less contractual contingencies pertaining to financing, appraisal value, closing dates, and even inspections. While it is true your purchase offer may appear more favorable to the seller, you could be moving into a money pit by being careless with interior inspections.
The Home Inspection
As with all things in life, there are some highly-rated inspectors and those inspectors who you would never recommend. Asking your real estate agent, loan officer, or friend/relative who bought a home nearby might be a good start. Prospective home buyers might also want to make sure that the inspector is certified, licensed, and insured.
If the inspector uncovers problems that need to be corrected, knowing how bad it is, how much to fix, and how long it will take are crucial to completing the transaction. Usually the inspector will be able to tell you exactly how to fix the problem, the estimated time, and the cost to repair or replace the problem..
Here are some reasons why the buyer should have one performed:
Peace of mind — It makes the buyer content that the home is decent and livable condition.
Renegotiate – If problems do surface, the buyer is in a position to ask the seller to make repairs, give the buyer a closing cost credit, or lower the purchase price so he can fix it after escrow
Cancel the transaction — If the problems uncovered are overwhelming with substantial costs to fix, the buyer can cancel purchasing the home.
Since there are two parties involved in the transaction, it will help the seller by dealing with any concerns ahead of time that could hinder the sale of their home. The seller can obtain repair estimates prior to listing the house for sale.
Transparency — Having available a pre-inspection report for buyers shows them the cost of repairs and that the seller is being transparent.
Whatever you do, do not rely solely on the advice of a home inspector’s assessment of termites. And if the subject property is on a hill or slope, you definitely want to get a geological report to assess the geological risk involved in the purchase of a home on a hillside.
The Termite Inspection
Using a licensed pest control company inspector who is experienced in finding the existence of wood destroying pests and then providing a report on his findings and recommendations for correction is a very smart idea. In fact, it is so smart, that any buyer who will obtain financing must have this completed on homes in California. An inspection for termites can potentially save you lots of money in damage repairs that pests might cause if not inspected.
They will typically inspect every visible area of the house that is accessible. If infestation evidence is found, the evidence is put on their state-approved forms and they recommend forms of treatment, either spot treatments or tenting the entire structure. Keep in mind that the inspector cannot see or detect infestation behind walls, paneling, cinder block wall voids, or beneath carpeting. Infestation in these areas may continue to be undiscovered.
Geological Inspection
The potential geologic hazards that are present, within homes situated on hillsides, may be very easy to the expert’s eye but missed by the person without specialized knowledge in geology. Possible geologic hazards that go unrecognized can show up at any time, resulting in hefty financial losses coupled with lawsuits for liability. If you think it can’t happen to you, don’t forget the Bluebird Canyon landslide in Laguna Beach (http://www.ocregister.com/articles/home-137081-city-canyon.html) on June 1, 2005, which destroyed 12 homes and disrupted the lives of dozens of residents.
It’s a jungle out there, for both buyers & sellers…watch out folks. Get represented by a real estate company who is on top of things so your best interest are always a priority number one.