Folks who are buying Carlsbad real estate, or anywhere for that matter, owe it to themselves to do a thorough investigation of the property they wish to buy. This is not new news, or shouldn’t be.
Most REALTORS strongly encourage buyers to hire a home inspector to investigate the home they are trying to buy and part of the due diligence process. To not do so is foolhardy, in my opinion. We even have a disclosure here that advises buyers that to not conduct such an investigation is going against the recommendations of the agent. But sometimes folks don’t listen.
With the market we are in, this becomes even more critical, given the number of short sales foreclosures, and bank-owned properties (REOs). Since these homes, and sometimes others, are sold AS IS, a prudent real estate buyer will want to know what they are getting themselves into before signing on the dotted line.
My experiences with home inspectors have been pretty good, although I know there are some who are not so competent. And let’s face it they are normally not trades people so their inspections may be less thorough than, say, a licensed plumber. Nor should they be expected to be as knowledgeable. Plus there are always those darned disclosures and disclaimers.If they recommend further evaluation, it is probably wise to listen.
The point of all this is to ask whether you, Mr. and/or Ms. Carlsbad Buyer, are really doing as thorough an inspection as you should. Or are there cases where more is needed?
A few examples:
- A home inspection for buyers back east (this was a home with a basement, mind you) indicated problems with the foundation. Potentially serious problems since the house looked like it was leaning. Further evaluation was recommended. We brought in a structural engineer top evaluate the problem, which indicted a need for significant improvements. Next step was bringing in someone with plenty of experience n repairing foundations. Estimated cost was in excess of $50K. Buyers decided to move on to the next house.
- A short sale property (sold AS IS, of course) yielded significant concerns about the electrical system, main panel, and miscellaneous wiring here and there. Buyers requested an evaluation of the electrical system by a licensed electrician; estimated costs exceeded $2000 to repair. Since it seemed the bank would not negotiate these repairs, the buyers said NEXT.
- A beautiful home had a pretty positive inspection save for a problem with the furnace. Seems it was a model that the inspector was not allowed to test. Rather than just assume it was working OK since the sellers reported no problems, an HVAC company was brought in for further evaluation. You guessed it – there are problems with not only the furnace itself but the brand due to past fire issues. Big safety hazard. Time to negotiate with the sellers to replace the furnace.
These are just a few examples of the importance of buyer due diligence. Most homes don’t have serious problems, and one should expect home inspectors to find issues in any home, even a new home.
Doing a thorough job in your due diligence can help you avoid serious, and potentially expensive consequences.
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If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your homes search, please contact me by phone or text at (760) 840-1360
or email me at JDowler@remax.net.
All content copyright © 2007 Jeff Dowler Carlsbad Homes and Real Estate Tidbits
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Jeff, a great reminder for buyers of all categories of homes, even new construction homes. You need to catch all the problems and fix them before closing on the deal.
Excellent. As Gary said, inspections are equally important on new builds. Inspectors have found gas leaks and broken roof trusses which buyers would never catch if they only did their routine punch-out with the super.
Jeff when I meet with Borrowers for them to sign loan papers and for me to collect their documentation, I always tell them that even though they do not have to do a Home Inspection in order to get the loan, that it is probably the best spent money that they will spend during the whole process.
Hi Jeff,
Excellent information for home buyes anywhere. You know what they say about "an ounce of prevention"...
Hi Jeff, This is very good information. I started a few years ago providing Buyers with a list of home inspectors that are licensed contractors. I think they do a better home inspection than just a certified home inspector that is not licensed.
Jeff - home inspection is a must - new home builders really balk at this - which could be a red flag.
Great advice for all buyers. It is so important to bring in the experts!
Jeff,
We sometimes get buyers who refuse to pay for an inspection. They would rather bypass it and hope nothing goes wrong. I make sure that we recommend all buyers to inspect as it is their right. If they choose not to then they must sign a waiver so there is no liability.
We once had an agent purchase a listing we had that was a condo conversion..the unit was completely redone and the agent told me the buyers didnt want to do an inspection and after they closed the walls caved from a supposed water leak from their shower that they apparently left running. the agent called me crying...
I told her she made the mistake of not having the buyers inspect. They even bypassed a final walkthrough.
Gary - well I agree. I have never had a buyer who did not do an inspection, adn there have been some pretty scary ones. Thankfully negotiations can work to get these things resolved to the satisfaction of all parties in many cases.
Jeff
Elaine - so true. Some of the new homes can be kinda shocking in terms of problems. Buyers should not assume that NEW is ERROR FREE.
Jeff
George - I like to hear about that kind of support from your side of things. It just makes sense for everyone.
Jeff
Lynda - a good quote to keep in mind. Given the cost of an inspection is only a few hundred dollars, it is money well spent, especailly on a home where there is clearly deferred maintenance or if the sellers have been there for a long time.
Jeff
William - that makes a lot of sense. The more information buyers have the better off they will be in their decision making.
Jeff
Virginia - well I have seen that as well. It makes you wonder.
Jeff
Diane - well I agree. I think most home inspectors are pretty knowledgeable, but they can;t know everything, and should act as though they do. Second opinions are often the smartest approach. And sellers often want that supporting evidence before they will agree to repairs, etc.
Jeff
Neal - well that's a story that should convince anyone of the value of spending a few dollars on an inspection. Having the waiver is essential.
Jeff