What to do when your home inspection report shows problems
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Posted On :
Sep-16-2009
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Article Word Count :
577
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More and more home buyers in Austin are following the advice of the Federal Housing Administration and obtaining home inspections before closing on a new home.
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More and more home buyers in Austin are following the advice of the Federal Housing Administration and obtaining home inspections before closing on a new home. However, it’s not always clear how to proceed when the inspection reveals problems or areas of concern. As a prospective buyer, you may not be aware of your options. Every situation is different, but in most cases buyers have four basic strategies for addressing defects revealed by a home inspection report.
Accept the house in its current condition
If you feel the house is still worth the money you’ve offered for it despite its problems, you can opt to reaffirm your offer and purchase the house anyway. If you pursue this option, you should be certain you have the cash in hand to repair the conditions if they worsen. Certain repairs require immediate action; for instance, a broken heating and cooling system may actually release carbon monoxide into your home. If you accept the house in “as is” condition, you’ll be responsible for the cost of repairing it.
Renegotiate the offer
If the problems revealed in the home inspection report are serious, you may wish to modify your offer to buy. The owner will then have the choice of accepting your offer, rejecting it outright, or making a counteroffer. The costs of home repairs vary widely depending on the company chosen, time of year, and regional differences, but here are some general guidelines to major home repair costs to assist you in renegotiating the offer.
• Replacing a forced-air furnace - $1,700 to over $3,500, depending on energy efficiency
• Replacing a heat-pump - $800 to over $1,400
• Replacing air conditioner compressor unit - $800 to $1,200 or more
• Cleaning air ducts - $250 to over $500 or more
• Replacing galvanized steel plumbing with copper pipes - $2,000 and up
• Upgrading electrical service to 100 amps - $1,200 to over $2,000
• Upgrading electrical service to 200 amps - $1,500 to over $2,000
• Replacing a roof – Varies, but usually at least $2.00 per square foot
• Major foundation repair and replacement – $300 or more per square foot
In Austin, rebates ranging from $180 to $650 are available from Austin Energy for the purchase of high efficiency heat pumps and air conditioning units, so you may wish to factor these savings into your offer as well.
Ask the owner to repair the problems
While the owner of the property is not obligated to go through with the sale if you make it contingent on repairs being made, often they will be willing to correct defects in order to close the deal. Be specific in your requirements; especially important is defining exactly what standards you expect from any repairs made. Allowing the owner to remedy the conditions will save you money at the time of the sale, but may end up costing you more down the road if the repairs are not done to an acceptable standard.
Walk away
If the problems are serious, such as major foundation cracks or sagging, substandard wiring, or a basement that periodically floods, withdrawing your offer may be the best decision available. Especially in today’s housing market, there are plenty of homes available. Many times it is better to walk away from a home with serious structural problems, rather than to risk paying for those problems for the foreseeable future.
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Article Source :
http://www.articleseen.com/Article_What to do when your home inspection report shows problems_3244.aspx
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Author Resource :
Joe Cline writes articles for Austin Texas real estate. Other articles written by the author related to Austin Texas Realtor and Rollingwood real estate can be found on the net.
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Keywords :
Austin Texas real estate, Austin Texas Realtor, Rollingwood real estate,
Category :
Finance
:
Real Estate
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