You have fallen in love with a home, put in an offer, and it’s been accepted. Now what? In the state of Virginia it is a “buyer beware” state. Don’t be scared by that term, but educate yourself on what that means. In layman's terms, it is up to the buyer and not the seller to investigate what they are buying to ensure it meets their standards. In the state of North Carolina, certain disclosures must be made, but as the buyer you still have the responsibility of conducting due diligence. During the due diligence period, here are common things a buyer should do...
Before the offer - Get to know the area!
Look up crime maps, search for registered sex offenders near by, check out neighboring properties, and the area in general. Make sure this is a place and area you want to invest in.
After the offer - Inspection(s)
Home Inspection: The general home inspection looks at the overall condition of your pending purchase, and covers its main structures and systems, including the roof, plumbing, heating and cooling, electrical, kitchen appliances, and water heater. A certified home inspector will give you a full report on any issues that he or she finds, and whether the problems are minor or serious.
Identifying a quality home inspector -
Ask for referrals from your agent, Nextdoor, and Angie’s list.
Confirm your inspector is licensed using this search: https://www.nachi.org/licensing-and-certification?fbclid=IwAR2LtDrJBNm6-ZzocWglwyNd-1URmSR9lS7_B-lTMhniI94Gvp3DKn9yODc or https://www.homeinspector.org/
To ensure your inspector is diligent and conscientious, and won’t rush through your inspection (they typically take 2-4 hours), ask them for sample reports that they’ve done in the past and compare them against other inspectors you are considering. By comparing reports from a few inspectors the ones that are more thorough will stand out.
Consider an inspectors experience, training, and possible certifications (beyond licensing requirements).
Ask what is included with their fees. Some inspectors will charge you for the basics that they are licensed for. Others may add on fees for the use of drones, infrared cameras, or conducting termite or radon tests that really require a specialist to conduct.
Other inspections:
Wood Destroying Organisms Inspection aka Termite Inspection - Looks for wood rot in the structures of the property caused by termites, other insects, or water damage. Most lenders will also require this in addition to the general home inspection.
Lead-based paint inspection - This inspection tests for the presence of lead-based paint in or outside of the home. It’s legally required for homes built before 1978; federal law requires that sellers disclose certain information about the presence of lead-based paint and allow potential real estate buyers to test for it.
Radon gas inspection - This tests for radon, a radioactive gas that has been found in homes all over the United States. The EPA and the Surgeon General estimate that long-term exposure to high levels of radon gas causes thousands of lung cancer deaths in the United States every year.
Defective drywall inspection - A relatively new test in which a property is checked for evidence of defective drywall (aka defective Chinese drywall), which emits a strong sulfur smell and corrodes building materials and wiring. It was used in many new homes and buildings between 2001 and 2009, mostly in Florida,, and has been linked to health problems.
Seller Disclosures:
North Carolina - North Carolina requires that home sellers share any known hazards or defects with would-be buyers. This is to protect buyers by ensuring they aren't hit with a surprise problem after purchasing the home. In the state of North Carolina, a form called a “residential property condition disclosure statement” must be provided to the buyer before a contract can be signed.
Virginia - In Virginia, the seller is obligated only to provide the buyer with a “Residential Property Disclosure Statement,” (Code of Virginia § 55-519), which contains minimal information.
The first item on this disclosure form states that the seller “makes no representations or warranties about the condition of the property or its attachments.” Essentially this means the seller is not responsible for informing the buyer about anything wrong with the property, and it is up to the buyer to find any problems prior to closing.
After due diligence is complete:
Once you’ve completed your due diligence it may be time to go back to the seller to address issues found. In contracts where the property isn’t sold “as-is”, you may ask the seller to either make or credit you for repairs. This request is done in writing as part of the negotiation, and your real estate agent will formally submit your request.
In some contracts, you can ask the seller in writing to make the repairs, if they aren’t too numerous or severe. But sometimes a property will have so many problems that you may decide to terminate the contract and get a full refund of your binder deposit.
With these tips and a great real estate agent to advocate on your behalf, you will have the knowledge in hand to ensure a thorough and thoughtful due diligence process is conducted.
Have questions? Reach out to the Coastal Homes Virginia Team!
Comentários