6 Home Inspection Problems that Kill a Sale
It’s nearly a guarantee that your home inspection report will contain some issues that you will have to deal with. Some may be minor such as a blown-out light bulb, while others, like a leafy roof, are major problems. Major problems can ultimately ruin a deal, but it isn’t always necessary to run the other way if a home you’re buying comes up with some problems. Check out some of the most common home inspection problems and what you should do if they come up on your inspection report.
Asbestos
While asbestos isn’t a problem commonly seen in new homes, it is common in homes that were built pre-1975. Seeing asbestos on a report isn’t necessarily a deal killer. Asbestos in siding or 9-by-9 floor tiles isn’t a huge issue and can be remediated by covering them with other materials to protect them from damage. Asbestos insulation around pipes that is crumbling is a serious health issue and should be remediated by a qualified asbestos abatement contractor prior to closing.
Radon in the Basement
Radon is a naturally occurring radioactive and carcinogenic gas that is sometimes found in homes, most commonly in basements or crawl spaces. Most homes do not have a radon problem, but if an inspection report does note one, it’s important that you fix it because in today’s tight homes, it can filter up through the entire system. Radon levels above 4.0 picocuries per liter call for the installation of an active remediation system. To fix this usually costs anywhere between $1,500 and $2,500. If you are unable to fix a radon problem prior to selling, you can offer to come down on your asking price to cover repairs.
Buried Oil Tank
If you are buying a home that was built anywhere from the 1930s to the 1990s, there is a chance that there is an oil tank buried somewhere on your property. Sellers really need to take care of a buried oil tank before listing. However, if the tank was buried properly or professionally decommissioned and the seller has the paperwork to prove it, you could leave the oil tank. An intact tank with no leakage can run upwards of $5,000 to dig up. This is definitely a good sum of money, but if a home inspection reveals that the tank is leaking, then you could be looking at tens of thousands of dollars in repair work.
Exposed Wiring
Exposed wiring is generally not a huge issue, but it can cause a safety problem. Outdated [or exposed] wiring should be updated, but it’s preferable to have your own contractor do it so you have control over the quality of the work and can be sure proper permits have been obtained. This means that exposed wiring is generally something that the buyer might take care of, but that can be negotiated in the price of the house.
Black Mold
Just having the world ‘mold’ on an inspection report can kill financing. This isn’t the only thing to be affected by black mold, however, and there can be serious health problems particularly if a family member has respiratory issues. Consider passing on the home altogether if there is an issue with black mold. If you really want the home, hire a professional to get rid of the mold and to be sure to have the home tested again before buying.
Termites
A house that reveals a termite problem will require inspection by a structural engineer to report on the integrity of the framing and whether any additional support members need to be added. Fixing the damage will be expensive because all the affected elements must be exposed, damaged pieces must be removed and replaced, and the remainder of the house treated. If you want to buy a home that has termite damage, do so only after securing paperwork from the termite company stating that the house has a termite warranty.
The bottom line when it comes to home inspection reports is that any large issue has the potential to scare away buyers, but that doesn’t mean that sellers should immediately rush into repairs. Rather than doing costly repairs prior to selling, consider letting the buyers do the work and negotiate a price that reflects the work that needs to be done. Proceed with caution if you are buying a home that has revealed some major problems during a home inspection and know how much you are willing and prepared to spend on fixes before you buy.