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Q: We recently sold our home using a REALTOR, a septic tank test was not done. The REALTOR did not suggest we have the house inspected and it did not occur to us that we should do so. Who should have had made the arrangements for the septic test and made sure everything was up to code?
A: Your question is an excellent one and points out the need for a pre-inspection to be completed by you, the seller, BEFORE you list your home. I have to lay responsibility for this one at your agent’s feet. Yes, it is your house and you are responsible for maintaining it but the biggest part of what you pay a real estate commission for is ‘sound recommendations from a professional whose training should have prepared them’ to tell you what I am about to tell you.
Your question was: Who should have made the arrangements for the test? It is unimportant who made the call, you or your agent, to a septic company to come out and do the inspection. Either your agent could have handled that on your behalf or made several recommendations so that you had picked up the phone and actually called someone.
The missing piece seems to be that there was no discussion about the NEED for such an inspection at the appropriate time. Pre-inspections save sellers a lot of heartburn and usually a lot of money as well.
In the industry, agents are pretty divided and very vocal about whether or not it is in the best interests of a seller to spend the money for an inspection which would have uncovered this problem (as well as any other major problems). I am adamant that a pre-inspection should be conducted on any property which is more than a few years old because of the strong possibility that problems exist which can best be taken care of BEFORE the listing has occurred.
Opponents of pre-inspections insist:
Additionally, there was a crack in the interior chimney wall. This was a lovely $350,000 home and the sellers could have and should have corrected those items before it was listed. The problems were, in fact, fixable. The sellers initially offered some half-baked resolution, which we rejected.
My clients were prepared to walk away and even leave their $3,000 earnest money on the table. They just didn’t want the house any more. A house they had loved and had picked as their retirement home. I prepared a very precise inspection response—quite frankly asking for more than they had to do and they refused. We requested and received a mutual release. We had to fuss a little bit, but their earnest money was returned.
The sellers of the home had already started construction on their new dream home, had had this house on the market for more than six months and now they had to start all over trying to find a new buyer. Plus, they still had to fix everything they should have fixed before. All for lack of a pre-inspection.
During my career as a REALTOR I helped many clients terminate the contract (and get their money back) as the result of significant inspection issues we could not come to terms over.
Much of the time we walked away from the transaction if the seller was not willing to give us EXACTLY what we wanted in the way of a fix. It is definitely not a position of strength for the seller to discover they have any major issue in the time leading up to a possible closing.
After helping numerous buyers ‘walk’ because we were not satisfied with the compromise of repair or other concessions from the seller, I eventually established a personal policy of refusing to list a home unless the seller agreed to a pre-inspection with one of the toughest inspection companies in the city and further agreed to repair the offending items before we listed.
Like I said, I have to drop this at the feet of the REALTOR for failure to adequately prepare you for just such a situation as later occurred. Additionally, I would be interested in whether or not the septic system is specifically addressed on a Seller’s disclosure form, if your state uses one. Any agent worth their salt would have checked to be sure you understood all the questions you were being asked on such a form.
The issue of pre-inspections gets my adrenaline flowing. I should probably go have a glass of tea.
Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.
(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)
A: Your question is an excellent one and points out the need for a pre-inspection to be completed by you, the seller, BEFORE you list your home. I have to lay responsibility for this one at your agent’s feet. Yes, it is your house and you are responsible for maintaining it but the biggest part of what you pay a real estate commission for is ‘sound recommendations from a professional whose training should have prepared them’ to tell you what I am about to tell you.
Your question was: Who should have made the arrangements for the test? It is unimportant who made the call, you or your agent, to a septic company to come out and do the inspection. Either your agent could have handled that on your behalf or made several recommendations so that you had picked up the phone and actually called someone.
The missing piece seems to be that there was no discussion about the NEED for such an inspection at the appropriate time. Pre-inspections save sellers a lot of heartburn and usually a lot of money as well.
In the industry, agents are pretty divided and very vocal about whether or not it is in the best interests of a seller to spend the money for an inspection which would have uncovered this problem (as well as any other major problems). I am adamant that a pre-inspection should be conducted on any property which is more than a few years old because of the strong possibility that problems exist which can best be taken care of BEFORE the listing has occurred.
Opponents of pre-inspections insist:
- That the seller should not waste money on an inspection when the buyer is going to have one anyway
- That the seller is unnecessarily spending $300-$400 which they could make better use of by putting in some flowers
- Believe that you would avoid uncovering something which could be a deal breaker AFTER you have an accepted offer (don’t you hate when that happens?)
- That the cost is a wise investment in the success of your real estate transaction
- That if you uncover any significant problems you are in a better position to search out the right professionals to correct them and price shop for the best value as well as schedule that work at your convenience rather than be in a rush to get it done
- That if the needed repairs represent a significant investment, then you can adjust what you’re considering listing the house for rather than have an unexpected expense eat into your profits at the end
- That an investment for the “extra” inspections (mold, termite and septic system) of $200-$300 above the base cost could save you thousands of dollars at the back end since you can’t renegotiate the sales price AFTER the buyer hits you with repairs which are mandated as allowable under your state’s SELLER DISCLOSURE law. A septic repair/replacement would definitely be covered in most states and a repair could cost upwards of $1,000. The replacement of the septic system or an expansion of the field or the finger system could set you back MANY thousands of dollars. Likewise, a possible termite problem should keep you awake at night, UNLESS you had a pre-inspection and know that you don’t have any.
Additionally, there was a crack in the interior chimney wall. This was a lovely $350,000 home and the sellers could have and should have corrected those items before it was listed. The problems were, in fact, fixable. The sellers initially offered some half-baked resolution, which we rejected.
My clients were prepared to walk away and even leave their $3,000 earnest money on the table. They just didn’t want the house any more. A house they had loved and had picked as their retirement home. I prepared a very precise inspection response—quite frankly asking for more than they had to do and they refused. We requested and received a mutual release. We had to fuss a little bit, but their earnest money was returned.
The sellers of the home had already started construction on their new dream home, had had this house on the market for more than six months and now they had to start all over trying to find a new buyer. Plus, they still had to fix everything they should have fixed before. All for lack of a pre-inspection.
During my career as a REALTOR I helped many clients terminate the contract (and get their money back) as the result of significant inspection issues we could not come to terms over.
Much of the time we walked away from the transaction if the seller was not willing to give us EXACTLY what we wanted in the way of a fix. It is definitely not a position of strength for the seller to discover they have any major issue in the time leading up to a possible closing.
After helping numerous buyers ‘walk’ because we were not satisfied with the compromise of repair or other concessions from the seller, I eventually established a personal policy of refusing to list a home unless the seller agreed to a pre-inspection with one of the toughest inspection companies in the city and further agreed to repair the offending items before we listed.
Like I said, I have to drop this at the feet of the REALTOR for failure to adequately prepare you for just such a situation as later occurred. Additionally, I would be interested in whether or not the septic system is specifically addressed on a Seller’s disclosure form, if your state uses one. Any agent worth their salt would have checked to be sure you understood all the questions you were being asked on such a form.
The issue of pre-inspections gets my adrenaline flowing. I should probably go have a glass of tea.
Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.
(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)
Let’s look at some of the problems that could occur if you don’t get a home inspection. Major problem is that something is wrong with the house.
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