When buyers find a home that meets their needs, it's time to fully understand what they are buying. The sellers must disclose everything they know about the home and the buyers have the responsibility to inspect the home until they are completely comfortable with all aspects of the home they are buying.
I always insist that my buyers have home and pest inspections completed at a minimum. If there's a pool, I always strongly suggest having it inspected as well. Based on the findings in these inspections and the buyer's desires, they may also have the roof, chimney or anything else they wish inspected.
Most homes have minor issues, and some have serious issues, that are not visually obvious. It is better to find out about a clogged dishwasher drain line (and have it repaired) before you move in to your new home, rather than by cleaning your dishes the first time and feeling like "Old Faithful" just erupted in your kitchen.
I had a buyer recently whose home inspection found that the GFCI outlets in the bathrooms were not wired correctly. They did not trip when they should, which poses a serious threat of shock. This was an issue that we insisted was repaired prior to closing escrow on the purchase.
I once represented a seller whose home was literally sliding off its foundation. This was not obvious to the untrained eye, including mine and the sellers. The buyer's home inspector had concerns about the foundation so they called in a structural inspector at a cost of $800 to the buyer. This inspector said the home would eventually fall off its foundation if repairs were not made. The first buyer backed out of the deal and we found another buyer who was willing to purchase the home as-is with a full understanding of the issue.
During the escrow process, while buyers are completing their inspections, the sellers and the real estate agents involved have the obligation to complete a myriad of disclosures, sharing everything they know about the home with the buyers. While all of the disclosures are important, some contain information that buyers find most relative to their decision making process.
I place special emphasis on the Transfer Disclosure Statement (TDS) and any addendums or supplements to the TDS. The TDS is completed by the seller and the agents. The seller must indicate what the home includes (dishwasher, garbage disposal, gas water heater, etc) as well as if these items are all in proper operating condition. The sellers must also indicate whether or not they are aware of any significant defects in the structural components of the home (walls, plumbing, roof, electrical, etc).
The agents representing the seller and buyer are also required to complete a visual inspection of the home, and disclose their observations in the TDS. Typical findings in my inspections are normal ‘wear & tear' items, such as marks on walls & floors, hairline drywall & stucco cracks, etc. It can also include such other items as the homes proximity to a busy street or school.
Other important items to watch for in the disclosures: Have there been pets in the home and are there pet odors? Have there been insurance claims against the home? Is the home located in a flood, fire or earthquake zone? Has there been any mold in the home? Have there been repairs or improvements made to the home that were done without permits, or not up to code?
Armed with all of these disclosures and the inspections, the buyer should be well enough informed to decide to either continue with the purchase as is, request some repairs be completed, or cancel the purchase. The goal is to be a fully informed buyer, rather than a surprised (when it may be too late) home owner.
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