| 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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