When buying and selling homes, the property purchase is often
subject to a satisfactory home inspection being done. Now and
then, a home inspection uncovers severe structural problems.
Here's an example of a situation in an upscale neighborhood.
Severe Structural Problems
Does the buyer walk away when there are serious structural
problems? Yes, but not always. A lot depends on the constraints
facing the buyer (are they relocating to start a new job, or
just "moving up" in the same general area?) and on how much the
buyer likes the property. The attitude, maturity level,
communication skills, and flexibility of both buyer and seller
also make a huge difference.
It's easy to see a deal blowing up in this situation. Let me
tell you about a situation I saw that actually worked out.
Structural Problems - Upscale Neighborhood
The first involved two professional couples and a house one
couple wanted to sell and the other wanted to buy in an
established, up-scale neighborhood. The house was a colonial
style, all brick, very traditional house built about 15 years
ago using top of the line materials. The kitchen and bathrooms
had been modernized and upgraded within the past 3 years. Top of
the line materials (marble, ceramic tile, and granite) were
again used.
The house was located on an acre lot that sloped gently down to
the street in the front. About 10 feet from the right side of
the house, the lot sloped steeply away to a pretty stream. The
lot backed to a treed area of a beautifully maintained, historic
estate owned by a university and open to the public on a
fee-paying basis.
The home inspector noticed that the chimney on the right end of
the house was pulling away from the house. It was about 2 inches
away at the top, but the bottom was still attached. In the
basement, there was some cracking along the wall the chimney was
on. The home inspector would not certify the house as
structurally sound, but recommended that an engineering firm
take a look at it.
The buyer asked the seller to have an engineering study done.
The seller was upset but didn't go to pieces. Something was
causing the chimney to pull away, so they called in an engineer.
For legal reasons, the sellers also needed to understand what
the problem was.
The engineer determined that shrink-swell soil was causing
serious foundation problems. They recommended digging down a lot
further than the original footers and constructing an elaborate
new support system. The sellers agreed to do it and the buyers
agreed to delay closing until the work was completed. Thirty
thousand dollars later (out of the sellers' pocket), the
transaction closed.
In Closing
When considering the above example, what is the moral? If you
keep a cool head and look for solutions, structural problems
need not be a deal killer.
More Information:Visit
http://www.fsboamerica.org/ for more details.
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