First there are the initial negotiations with the seller, typically haggling over price; sometimes, going back and forth over other terms.  Ideally,  the buyer and seller reach an agreement and escrow is opened. The next obstacle is always the home’s physical inspection. 

Several weeks ago, my client opened escrow on a one hundred + year old Craftsman in Pasadena’s Bungalow Heaven historic district.

Although home inspectors offer a thorough overview of the property, the inspector often recommends that the buyer hire additional specialists.  In our instance the inspector suggested that the fireplace be further evaluated and a sewer scan performed. 

The buyer’s dilemma is that the additional inspections can be costly and a home buyer can easily approach $1,000.00 in inspections.  The buyer needs to make the determination which further inspections to order.  After further consultation with her home inspector, my client decided to pay for the additional inspections.   The result:  The fireplace is separated from the house….. Cost to repair/rebuild, nearly $17,000 and the sewer line is cracked, cost to replace $16,000. 

What happens next?  Once the buyer has the results of the inspection, the buyer can accept the condition of the property and proceed to closing.  Or the buyer may cancel escrow and assuming that the buyer has a physical inspection contingency the deposit is refunded.  What often happens with high dollar items is further negotiation.  Back to square one.

Once the buyer has made the inspections available to the seller, the seller is now required to disclose the inspections to any future buyer.   Of course, any subsequent buyer will be concerned with the sewer pipe and the defective chimney.   

In our instance, the savvy listing agent ordered another sewer scan which indicated a repair bid of less than $2,000 – quite a discrepancy…. Assuming we were to move forward we would likely need a 3rd opinion of the sewer scan.  But in this instance the seller  will only credit $2,000 and not a penny for the chimney…  Result: We canceled escrow and bought another home in La Crescenta (and for less money)…. Stay tuned for the inspection results!

Related Posts: What to expect during the home inspection
How many inspectors does it take to inspect a Los Angeles home?
Top six home buying mistakes
Los Angeles home sellers, when in doubt disclose

Tweet