Recently, buyers who found “the home” of their dreams. The home that checked off all the right boxes like spacious & roomy, a great kitchen and ability to finish the basement. The bonus was the lot – over an acre, space between neighbors and a yard with a great view.
However, it’s not always what is seen than what isn’t apparent or hiding. Of course, this leads right into the inspection. And while it’s optional, it’s highly recommended. In their case, the property needed at least a water, termite and septic report for their Lender.
Once a Buyer finds a home with an on-site septic system, it becomes the largest unknown entity. Will it pass and be in good working order where the Lender (Bank) accepts its condition? All parties are on edge if it appears to be working (not backing up). That was the situation for this property. Not only septic but also several other issues.
For this property, we encountered the following:
- Radon (higher than the recommended level of 2.0 pCi/L).
- Septic – drainfield failed. Required a new one installed (prior to settlement for the lender).
- Mold – water stains in the garage led to the room above and under the carpet – a black mold-like substance was found.
When a Buyer makes an emotional connection with a property, the mind begins to look past blemishes and defects. Unless it’s a cash offer, the Lender will require major items to be corrected. In this case, the Septic was a must fix item (for this Buyer and others buying the home). The Radon is not a lender requirement but highly recommended. The other surprise was the mold-like substance. This is very important for a FHA loan where it could also be picked up by the FHA Appraisal and force the issue be resolved prior to settlement. Regardless, mold can also grow and the extent needs to be determined and the source corrected. This may include cleaning the surface to removing drywall, sulfuring and inspecting the roof or walls.
Buyer Beware: Always opt for an inspection.
Sellers: You must disclose.
Next week: Seller’s Disclose
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