When you’re ready to make an offer on an East Bay home, the contract usually contains provisions for you to make physical inspections of the property. If the reports are unsatisfactory, the contract may allow you to withdraw from the agreement. You may also attempt to renegotiate the terms, but the seller is under no obligation to make repairs.
Ever wonder what main inspections to look out for? Here are the most common types:
- Structural Pest Control Inspection
Often referred to as a termite or pest report, it is conducted by a licensed inspector. In addition to termite damage, the report will indicate any type of wood-destroying organisms that may be present, including fungi (sometimes called “dry rot”), which generally results from excessive moisture.
Most pest reports classify conditions as Section 1 or 2.
Section 1 conditions are “active” and are currently causing damage to the property. The affected items are considered to be in need of urgent repair.
Section 2 conditions are not currently causing damage but are likely to if left unattended (a typical example would be a plumbing leak where moisture has not yet caused decay).
Who pays?
Your contract will specify who is responsible for the cost of the inspection and making corrections. A seller typically provides a pest inspection with their disclosure documents, but you may want to have a second opinion or an updated report.
Does this work have to be done?
Most lenders do not require a “clearance” of report items, which certifies that damages have been repaired. Much of the time the cost of repairing pest damage is negotiated and can then be deducted from the sales price or applied to your closing costs.
- Physical Inspection
A physical inspection clause allows you to have the property thoroughly reviewed, usually through a general home inspection. While home inspectors are not required to have a license, most are or have been general contractors. The resulting report provides an overall assessment of the present condition of the property. We only recommend inspectors who are members of American Society of Home Inspectors (ASHI) or the California Real Estate Inspection Association (CREIA).
What is inspected?
A home inspection covers items such as exterior siding, paint, flooring, appliances, water heater, furnace, electrical service, plumbing and other visible features of the property.
Further inspections
The home inspector may recommend further inspections such as structural engineering, roof, electrical and plumbing. They identify unsatisfactory conditions and provide detailed recommendations for corrections and cost estimates.
Who pays?
Inspections ordered on the buyer’s behalf are typically paid for by the buyer. Sellers will often procure reports in advance of a sale and provide them to the buyer in the disclosure package.
- Geological Inspection
You may elect to have a geological inspection to educate yourself on the home’s soil conditions and the stability of the building site. This inspection is performed by a geotechnical engineer and involves not only physically inspecting the property, but also researching past geological activity in the area.
Who pays?
Typically the buyer pays, but as with other inspections, this is negotiable according to the contract.
Thinking of selling or buying a home? From starting your search to managing the inspection process our experienced real estate agents have the local expertise to guide you through the home buying or selling process. Contact us with any real estate questions.
