When buying a resale home a number of the homes will have at least one major defect. All previous owned homes probably will need repairs and improvements. Prior to making a major investment into your new home, need to be aware of possible problems, and what it will take to correct the problems prior to closing on the house. As a home buyer, you need to be aware of potential problems that may exist in a house, and how to identify those problems. Following are some potential problems that can be found in a house:
· The furnace may have a crack heater exchange
· Air-conditioning compressor is failing
· The presents of radon, water contamination, lead base paint and underground storage tanks
· Basement has moisture
· Roof and flashing problems
· Termites and/or carpenter ants
· Problems with plumbing
· Electrical problems such as: Aluminum wiring and wiring not up to recent standards, etc.
· Vertical and horizontal foundation cracks including settling of the house
· Chimney rot, settlement, and/or separation
When negotiating to buy a home, be sure to have a provision within the contract that provides you sufficient time to do an inspection, back away from the contract without losing your earnest money, and negotiate repairs or price adjustment. When the inspection occurs, recommend the buyer attend the inspection, this is the good way to see problem areas first hand, and understand the extent of the problems. In addition, this is a perfect time to ask questions that concern you about the condition of the house. Many times the problems identified in the inspection report are minor, therefore, requiring minimal or no corrective action. If major problems exist, usually the buyer has three forms of action available to him: require the seller to make sufficient repairs, negotiate so sort of cash settlement that will occur at closing, or back away from the contract. As a buyer, I would recommend the cash settlement as your best option.