When you walk through the house, if there are significant problems, these will often present themselves if you pay attention. For example, if the floors seem uneven, there might be foundation issues. If you see rust stains in the sink, there can be deteriorated galvanized piping. The more carefully you look, the more likely you are to see issues to which you can direct your attention when reading the disclosure reports that will be provided by the seller. In addition to the disclosures that are mandated by law (such as water heaters, smoke detectors, etc., and the transfer disclosure statement and its supplements) you will typically find reports that give you a good general picture of the condition of the house. These would include: general structural inspection (most important), structural pest inspection (termite report), and where warranted, roof, chimney, soils, water quality (for wells) and other specialized reports. Read these reports carefully. The seller is required by law to disclose to you what they know about any material defects the property has. You should not expect a lot of detail in the transfer disclosure, so carefully note any faults that are indicated, and consider the potential implications. If you learn to interpret the information from the seller and the inspectors, which your agent can guide you with, you can often gain a clear understanding of the physical condition of the property. You may find that the most important inspection reports (the general structural inspection and the termite report) are absent, either because the seller doesn't want to pay for the reports, or because the seller believes a better price may be achieved. We believe in full disclosure, and expect our seller clients to provide thorough reports. In most situations you need to have a clear sense of the magnitude of the defects in the house you are buying and what it will cost to fix them. |