Home Inspection and Appraisal

Home Inspection and Appraisal Negotiating repairs if needed

A home inspection is designed to give a Buyer a better understanding of the systems and overall condition of the home they are purchasing. There may be items that the Buyer will ask to have repaired. These can all be negotiated, and we will help you with perspective in this area.

The home inspection is typically set up immediately by the Buyer’s agent after the offer has been accepted since there is usually a 10-business day deadline for the inspection to be completed and for repairs, if any, to be negotiated.

Whole House Home Inspection The whole house home inspection usually takes two-four hours, depending on the size of the home.

A home inspection covers the major systems of the property:

- Exterior, porch, and deck - Foundations and walls - Chimneys and roof - Windows, doors, and attics - Electrical components and plumbing - Central heating and air conditioning - Basement/crawlspace and garage

Once a request for repairs is received, we can ask for additional information regarding any requested repairs. This may include calling in an expert to determine if certain repairs are warranted, and if so, a range of costs. With this information sellers can make informed decisions on what repairs will be done. This is often a mini-negotiation within the scope of the transaction.

Other Types of Inspections

Radon

Radon is a naturally occurring gas found in many areas of the Portland Metro area. If levels are over a certain amount, mitigation is advised.

Sewer Scope A sewer scope inspection checks the sewer lines to make sure there are no problems with tree roots, pooling, cracks, holes or pipe separation.

Additional inspections Depending on the property, the buyer may decide additional inspections are warranted. These can include roof, mold, oil tank location, well tests, foundation, and others. Buyer inspections should not be invasive, and should not damage the house.

Once Seller and Buyer agree to the scope of repairs, there are various ways to handle these in a transaction. Repairs agreed to may be completed by vendors paid by Seller, a credit can be offered at closing and buyer can take care of any repairs after closing, or the sale price of the home may be reduced by the cost of agreed to repairs.

Appraisal

Once the negotiations for the inspection are complete and agreed upon, the Buyer’s lender will order an appraisal. The property must appraise for the purchase price for the lender to approve the loan.

If the house doesn’t appraise for the purchase price, Buyer and Seller can renegotiate the price, split the difference, or the buyer can bring in an additional amount of money to cover the shortfall. The difference is what the house appraised for compared to the price of the home. If mutual agreement is not reached, the buyer may terminate the sale and receive their earnest money deposit back.