Property Inspection
The offer for the home included ten days for detail inspection of the home before the deal becomes final. Unexpected costs need to correct problems uncovered during the inspection can be basis to renegotiate the price of the offer or to retract the offer.
Items of particular concern were the sewage system and foundation. The good news is that the home is structurally very sound. There are actually two different foundations. Apparently the house was once lifted and an extra layer of foundation applied. Both appear sound.
Pipes connecting to public sewage system can get blocked or broken over time. These problems, which can be costly to fix, can only be uncovered by running a camera down the sewage line all the ways to the sewage main. It turns out that this house uses a septic system rather than public sewage, typical of more rural dwellings. We hired a septic specialist to inspect the system. He reported that the septic system is in great condition.
There were additional work done on the house over the years and all appears to be fine. The basement is dry and all the wood structures are in good condition.
Tom also found that the house is not insulated, including the walls, under floor, air ducts and the water pipes are either not insulated or poorly insulated. Much to the surprise to some of us, Tom said that lack of insulation is quite common in that part of the country, despite the cold weather. Obviously this is a great opportunity to make significant upgrades.
Having found no serious problems with the house, we finalized the offer and closed the transaction within one month.
Coming next: Energy Improvement Opportunities.
See also: Partnering With Green Hearted Companies and the entire From Foreclosure To Green Home series.
