Buying a house is a goal for many people in the United States, with some 79 percent of those surveyed agreeing that homeownership is part of the American dream. There’s no doubt that this is a monumental life event — and the hefty financial investment it requires reflects its significance. If you are purchasing real estate, you want to make sure the property you receive is in great condition. To assure this, part of the buying process involves determining the type of repairs the structure requires. You can even ask the seller to cover certain maintenance works. Find out how it works below.
Review the Disclosure Documentation
So-called “disclosure laws” require the seller to reveal problems related to the property, such as a leaky roof. This involves the seller filling out template documents answering a series of yes-or-no questions. Topics covered include former renovations and home improvements, as well as any past defects, property line disputes, and pest infestations. This list of disclosure laws by state will help you determine what the paperwork in your area should cover.
Check the disclosure forms against city building and zoning reports for the property. If the seller completed improvements without the proper permit or municipal approval, for example, then these may not have been done according to health and safety codes. There are also financial aspects to review; for instance, if the home was repossessed in bankruptcy proceedings in the past, you want to be sure the seller (and not the bank) is the rightful owner according to the property title.
Schedule a Home Inspection
A home inspection is needed to check for additional issues. Hire a third-party inspector to review diverse property components, including the roof and HVAC system. They will produce a written report detailing any red flags, such as mold in the basement. As the buyer, you are responsible for bearing the costs of a home inspection. According to HomeAdvisor, the average cost is $278 to $390 — but this is just for the report. If problems arise, you also need to factor in repairs. A new furnace can easily cost over $13,000, for example.
There are some renovations that you should simply resign yourself to covering as the buyer. Cosmetic issues, for example, are not something you should demand the seller cover. If the deck needs staining, kitchen tiles are cracked, or paint is nicked, handle these improvements yourself once you've moved in. Outdoor landscaping and fence repairs are also something you can add to your own “to do” list. However, there are some elements that you can ask the seller to cover, as discussed in the next section.
Negotiate with the Seller on Select Repairs
Major home inspection items to bring up with the seller include water drainage problems, wildlife infestations, elevated radon levels, and significant plumbing impediments that interfere with the home's day-to-day use. This list from Clever includes more such points, like lead paint and a leaking roof. When these problems turn up, you should ask the seller to cover them. If the seller is to cover improvements, this needs to be confirmed in writing.
When negotiating costs, you can ask the seller to cover repairs up front or request that they reduced the home's sales price, leaving you with the extra funds needed to undertake repairs. This latter option has the advantage of giving you full agency over who does the work. Any larger issues that affect the house's overall safety — such as asbestos removal — should be a priority and addressed before you move in.
The above pointers will help you determine which problems exist with a property before you have invested money in it. Unfortunately, a lack of agreement between buyer and seller regarding repairs can lead to a deal falling through. Even major problems in the home inspection may be grounds to keep looking. Don’t get discouraged: You want your dream home to be safe for you and your family. This guide assures your peace of mind. Please fine more information at https://www.maecapital.com/RealEstate or call us and we can help you with all aspects of buying a home.Article by: Natalie Jones
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