Home Inspections
The Buy
& Sell Contract includes a
contingency granting the Buyer the
right to engage
a private inspector, or group
of
inspectors, to examine the home for conditions
that were
not obvious during the initial
viewings.
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Buyer's
contractual rights |
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Line 15 of the Buy and Sell contract
provides the Buyer with a specific
number
of days during which to complete
inspections. |
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The number of inspection days is
negotiable and can be any number
agreed to
by both parties. |
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Five, seven, or ten business days
are commonly requested for
inspections. |
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The Buyer covers the expense of
inspections. |
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There is no limit to the kind or
number of inspections. |
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The Buyer may choose anyone to
perform inspections. |
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The Buyer has the
right to terminate the contract if
not satisfied with the
results of the inspection by giving
the Seller
written notice
prior to the end
of the inspection period. |
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The Buyer is not required to do
inspections and may waive this
right.
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What can be
inspected?
The most common inspections are for pest, structure, electrical,
plumbing, heating, radon, well, septic and survey.
Buyers have also done inspections for mold, asbestos, barns,
hot tubs, and swimming pools.
The inspection contingency
places no limit on the kind and number of
inspections, or who does them. Buyer's have been known
to check the schools, study the association's building and use
restrictions, and inquire about criminal activity. Even
cable and phone lines might be critical to a Buyer who works
from home.
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Typical
Inspections... |
 Structural Inspection $250-$300
A typical
structural inspection is an examination
of the home's overall condition.
This
includes roof,
ceilings, walls, floors, foundation,
windows, plumbing, electrical
system, heating and cooling system, ventilation,
and
appliances. The inspector will look for safety
issues and conditions that may be a
major expense in the near future.
An inspection will take
two to three hours to
complete. The inspector
will explain how the systems
of the home operate and discuss the condition of
the home in terms that you can
understand. You will be given a
report in
an easy-to-read
format
allowing you to carefully evaluate
the home before
you purchase
it.
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Pest Inspection $60-$70
Wood destroying carpenter ants, carpenter bees,
and termites are frequently found in the
Mid-Michigan area. The
pest inspector will look
for evidence of insect and animal activity that
might cause physical damage to the home. Buyer's
with FHA
approved loans will be required to
have the home inspected for wood
destroying pests.
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Radon Inspection $85-$95
 Exposure to a high
level of Radon is considered to be as toxic as
second-hand tobacco smoke.
Radon
gas occurs naturally
from the natural
breakdown of uranium
in the soil. Radon is in the air you breathe,
but the level is so small that it is harmless.
Radon becomes a threat when it's allowed to
build up to high levels in confined spaces, such as in the basement
of a home. Since the home is where your family
spends most of its time, you will want have the
air tested to be sure that Radon is
at an
acceptable level. Should the level too high, a
system can be installed to correct
the condition.
Home Buyer and Sellers
Guide to Radon in the Home - EPA
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Well and Septic Inspection $175-$300 |
Ingham, Eaton, Barry and Shiawassee counties
require that the Seller have well and
septic systems tested
and made to conform to health department
standards before
the property can be transferred
to a new owner.
Purchasing a home in one of
those counties relieves the Buyer of the cost of
well and septic inspections.
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NOTE:
Clinton and Ionia Counties have not yet adopted
a "point of sale" regulation. The Buyer will
be responsible for having the well and septic
systems inspected at their own expense.
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 Lead-based
paint in homes built before 1978
Lead-based paint was used in homes built
prior to 1978, when the Federal Government
banned the use of lead paint for residential
properties. The purchase agreement offers and
opportunity to inspect for lead based paint, but
it's rarely done. Surfaces that show evidence of
having been recently re-painted are generally
accepted to have sufficiently sealed over
the
lead paint.
Protect Your Family From
Lead in Your Home is a
helpful booklet provided by the EPA. |
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When an inspection
reveals problems... |
No house is
perfect. Age, natural elements, and the
home's occupants contribute to conditions
that may need attention or repair. There's a good chance that
something will need of attention
now or sometime in the future.
The question is
"How costly or urgent
is the condition and who
should pay for the correction?" Example:
Suppose the
inspection revealed that carpenter ants have
taken up residence in one of the walls, the
furnace is leaking large quantities of carbon
monoxide, the Radon level tested high, and the
roof will need to be replaced in approximately
five or six years.
You have the following choices: |
- Accept the
conditions and move along to closing.
- Reject the
property by giving written notice that you
are terminating the contract.
- Ask the
Seller to make necessary repairs prior to
closing on the property.
Asking
the
Seller to pay for repairs
Line 14 of the Purchase Agreement states BUYER agrees to accept the property “AS IS”
in its present condition. There is nothing
in the contract obligating the Seller to make
repairs.
Seller's Dilemma
At the time the Seller accepted your offer he
probably wasn't expecting to spend more money on a home he
planned to vacate. Also, should the Seller need to
bring money to closing to offset the difference
between the
sale price and his mortgage
obligation, he may not be financially able make the
necessary repairs.
A Seller cannot
ignore the repair of safety issues. Now that he
has knowledge of their existence, they must now
be added to the disclosures, and
they will certainly be discovered on future
inspections.
Buyer's Impasse
The Buyer wasn't expecting a defective
furnace, a Radon condition and carpenter ants.
The Seller may be
persuaded to address these
conditions because they are safety issues
demanding immediate attention. It may
be
impossible to convince the Seller that replacing
a roof
having five or six years of expected life is
some kind
of emergency.
Removing the
inspection contingency
If the
inspection went well, or if the seller agrees to
address issues that need correcting, an addendum
is signed agreeing to remove the inspection
contingency. This addendum will become part of
the contract with any repairs being attended to
prior to the property changing hands.
The Buyer's mortgage company is now
advised to have the property appraised.
Providing there are no issues with the appraisal
the next step will be the Closing. |
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