Sometimes however, they seem to get a little over-zealous.  On a recent home inspection, an inspector informed the buyer that he found “major structural problems” in the foundation of the home and that repairs would cost big bucks.  The buyer became nervous and the seller offered to pay a structural engineer to look at the home.

The structural engineer decided that the home was just fine, and there was no risk of the home being “structurally unsound”.  What the inspector saw was normal settling, and there was no cause for concern.

Of course, this went over like a lead balloon to the buyer.  They were certain the engineer was going to find major problems, and the buyer has the right to walk away from the contract for any reason related to the inspection.  Who knows if it was a lack of faith in the engineer, or too much faith in the inspector, but the contract was rescinded.  This brings up a good lesson:

Inspectors are not necessarily structural engineers.  they can point out an area of concern, but unless they are also licensed structural engineers, they may not be the best source to advise a buyer on the structural integrity of a home.

It would seem that it makes a whole lot more sense to recommend a structural engineer be hired to assess the situation rather than panic people.  In this case, it cost the seller $800 (for the structral engineer to inspect) and the contract on their home over an issue that turned out to not be a structural concern.  The buyer was within their right, and the concern is understandable, but it stinks when you as a seller offer to come out of your pocket to ensure the quality of the home.

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Southern Maryland Real Estate Blog

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This does NOT mean that you should skip the home inspection!  Quite the contrary, if you’re trying to buy a primary residence, the inspection is absolutely crucial!

Don’t believe me?  Well, would you buy a car without knowing it runs?  Buying a home without an inspection is the same concept.  Does the furnace still work?  Have the pipes burst?  Have termites eaten through the walls?  You just don’t know without that inspection!  I can see the marketing slogan now:

Lovely home with rustic living (furnace is shot, bring blankets), In-ground pool possible (Basement is flooded), and lots of natural light (Termites were hungry)!

Danger Will Robinson, Danger!

All you wanted was a great deal, and instead you end up with a money pit.  While the inspection won’t fix the problems, you are saving yourself from possible FINANCIAL DISASTER by knowing what sort of problems (if any) may exist.  When it comes time to write a contract to purchase a foreclosure, bear this in mind:

1. The home is being sold as-is, and
2. The bank is not likely to do any repairs on the home, so….
3. The inspection is for “informational purposes only” (That’s Legalese for: Don’t even THINK of asking for repairs!)

If you want to keep yourself protected, make sure that any inspection being done for “informational purposes only” has a “walkaway” clause.  This means that if you find something wrong with the inspection that you don’t like, you can cancel the contract, get your deposit back, and find another property that suits you.

Banks are doing everything they can to relieve themselves of liability.  As a buyer, you need to make sure that you and your Realtor are keeping your financial interests protected!

Got questions about buying a foreclosure?  Give me a call!

~Jonathan Benya
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Southern Maryland Real Estate Blog