Congratulation to our wonderful clients in El Segundo on the sale of their beautiful home. We’re happy to announce our latest home sale and so happy that our clients put their trust in us. There are not all that many $2M+ home sales in El Segundo but this was one that was well worth it. The owners did a fantastic job of keeping it in near perfect condition and selling it was a dream. Their designer eye made the home look like it was professionally staged. Congratulations! View the current homes for sale in El Segundo.
The home inspection part of the home buying process is often challenging. Sellers have lived in the house for years and think that everything is just fine. We often hear sellers say “it’s been just fine for us so why isn’t it fine for the buyer?”.
Buyers have a drastically different take on the same report. Often times they’ll take the inspection report as a checklist for all that’s wrong with the house. There’s almost no such thing as a completely clear report. Even in instances with a very good report, buyer’s will often try and use that as a negotiating tool to lower the price, get a credit, or even do upgrades. That’s definitely not the intention. The inspection is done so that you are an educated buyer as to what’s working and what may need repairing. They also call out items not up to current code (but still very functional….codes just change all of the time). I always recommend to my buyers to focus on safety issues and what actually needs to be repaired to working condition.
Buying a home is one of the most important purchases you will make in your lifetime, so you should be sure that the home you want to buy is in good condition. A home inspection is an evaluation of a home’s condition by a trained expert. During a home inspection, a qualified inspector takes an in-depth and impartial look at the property you plan to buy. The inspector will:
Evaluate the physical condition: the structure, construction and mechanical systems.
Identify items that should be repaired or replaced.
Estimate the remaining useful life of the major systems (such as electrical, plumbing, heating, air conditioning), equipment, structure and finishes.
After the inspection is complete, you will receive a written report of the findings from the home inspector, usually within 1-2 days.
When you make a written offer on a home, you should insist that the contract state that the offer is contingent on a home inspection conducted by a qualified inspector. You will have to pay for the inspection yourself, but it could keep you from buying a house that will cost you far more in repairs down the road. If you are satisfied with the results of the inspection, then your offer can proceed.
Finding a Qualified Home Inspector
As the homebuyer, it is your responsibility to carefully select a qualified inspector and pay for the inspection.
The following sources may help you find a qualified home inspector:
State regulatory authorities. Some states require licensing of home inspectors.
Professional organizations. Professional organizations may require home inspectors to pass tests and meet minimum qualifications before becoming a member.
Phone book yellow pages. Look under “Building Inspection Service” or “Home Inspection Service.”
The Internet. Search for “Building Inspection Service” or “Home Inspection Service.”
Your real estate agent. Most real estate professionals have a list of home inspectors they recommend.
Home Inspections Are Not Appraisals
A property appraisal is a document that provides an estimate of a property’s market value. Lenders require appraisals on properties prior to loan approval to ensure that the mortgage loan amount is not more than the value of the property. Appraisals are for lenders; home inspections are for buyers.
As many of my clients are first time home buyers, the process of the termite inspection and termite/wood destroying pest repair process is often a bit confusing. Unlike any traditional repair requests that come up during the escrow process, the termite inspection and repairs are generally agreed upon prior to acceptance and are therefore contractual and non-negotiable during escrow.
During the offer there are two times the inspection and work can be mentioned. The Residential Purchase Agreement specifies whether an inspection will be performed and who will pay for it. Another document called the WPA or wood destroying pest addendum can also be included in the offer and goes into greater detail explaining what will be inspected, who will pay for it, and if there is any work needed per the inspection, who pays for the work. Most often sellers agree to pay for both the inspection and, what’s known as, section 1 recommendations. This often includes wood repair, spot treatment and sometimes fumigation (tenting). Every negotiation is different and some will not agree to pay for an inspection or the work. Regardless I advise my sellers to have an inspection even if they are paying for it themselves as simply put…it makes a big unknown more understood and decisions can then be based on the results. There are a number of challenges and problems that can be caused by the termite uncertainty and I’ve listed several here.