The home-inspection process is often the last major obstacle in a homebuyer’s path.
Not every one will clear the final hurdle, however.
Sometimes an intrepid inspector finds a flaw or three that surprise the seller and give the buyer second thoughts about the purchase. Or the inspection process yields minor issues that give the buyer just enough wiggle room to flee on his already cold feet.
Ken Anderson, a broker associate with Re/Max Alliance in Fort Collins, said most sellers today are willing to address most of the concerns found in an inspection.
“In today’s economy, the seller will give a little bit more,” Anderson said.
That includes repairing any significant flaws the inspector might find. In those cases, a little hard work — and plenty of transparency — can patch over any differences.
“If it’s a major issue, like a roof, the first thing you do is you go and get bids,” Henderson said. A good Realtor will call on an “army of people they always use” to get enough cost estimates and share the information with both parties.
Ron Tipton, owner of Comfort Home Inspection Services in Littleton, said some seemingly minor problems found during an inspection can mean major repair bills, depending on the material in question.
Houses with Federal Pacific electrical panels, polybutylene pipes and Masonite Woodruf shingles all spell trouble for homebuyers. Each has been yanked off the market, Tipton said, and for good reason.
“You look at homes now with that (roofing) material, and it’s swollen up in a lot of areas,” he said. “It’s a big expense to replace those items.”
David Kolesari, president of the National Association of Home Inspectors, said where there’s a will, there’s a sale.
“Any problem can be worked out. I don’t care how severe it is,” he said.
Some houses have issues that require major work, and some of it won’t be cheap.
“Fixing foundations can be scary expensive,” Kolesari said, and electrical concerns can be equally frightening if extensive enough. So, too, can cracks in the core of the house and mold concerns.
Garet Denise, owner of Cornerstone Inspection in Denver, said older homes will probably have more issues the home inspector can reveal.
Fix-and-flip homes have special challenges, in some cases.
Some flippers fail to address fundamental issues in the home, opting to install sleek granite counters in kitchens with shoddy electrical wiring and beautiful faux finishes atop plumbing problems.
In such cases, “you’ve got to undo what’s been done,” he said.
Shelly Hill, a Realtor with the Group Inc. in Fort Collins, said a new wrinkle to the inspection process involves the buyer’s home loan.
If the buyer applied for a Federal Housing Administration loan, an appraiser must inspect the house along with anyone hired by the buyer, Hill said.
“They really are looking for safety issues,” she said. “We hold our breath specifically if it’s an FHA deal,” said Hill, noting the process can sometimes delay a sale.
The first-time homebuyer may be uneasy about the home-inspection process, but Hill assures them that they have five “out” clauses in the contract.
“It’s structured to protect them,” Hill said. “They should know they have the freedom to find stuff out.”
Hill is currently wrapping up a deal in Old Town Fort Collins in which the home needed some significant repairs to its sewer lines.
“It felt daunting to the seller to deal with that,” she said. “Both parties were able to go back and forth and go through it. The repairs got made.”
