DEAR TIM: I know nothing about termites or the damage that
they cause. My husband and I have been looking for a home to buy for almost a
year. We found the house about a month ago. We were told by the Realtor that
there were termites but the owner had treated the house. We have already paid
for the appraisal and the home inspection. We were going to close this week.
But the Realtor called my husband on Thursday and told us that the seller was
not going to have another termite inspection. We would not agree to this. So the Realtor agreed to pay for the termite inspection out of his pocket. So Friday we
had our final walk through and my husband and a friend went under the house and
found that approximately 24 feet of the face plate, the floor joist, and
something else were just dust.
We do not have the money to invest in the repair. We have already paid almost
a $1,000.00 that we may lose. Is this something that the seller should fix? And
if they fix it will the home be just as good as before the damage, or should we
just call it a bad experience and go on looking for another home to buy? And
should our home inspector have seen this damage? Misty Dunfee
DEAR MISTY: Your home inspector blew it. I would call him
and ask for the name of his insurance carrier. Or did you get this information
before you hired him? If he has a good policy, the insurance policy may pay for
the repair and all will be well and good.
Termite infestation? Pick the best exterminator using my
Termite and
Carpenter Ant Checklist. I offer a
100% Money Back Guarantee.
If you don't mind I would like to take a moment and sort of say I Told You
So; if you would have read a column at my website about the home buying process
and who the *best* inspectors are, you might not be in this predicament.
But that aside, you may have some negotiating power. Aside from being a home
builder, I am also a licensed real estate broker. If you are lucky, your state
laws may be such that you now have a leverage tool. Most states have property
disclosure laws.
Now that the damage has been brought to the attention of the owner, he MUST
disclose it to all future potential buyers. If he doesn't and a buyer finds out
after a sale that the owner knew of the defect, the owner is subject to painful
legal expenses, plus the cost of repairing the property.
To get the wheels in motion with respect to making this new termite damage
work in your favor, write the owner a letter as well as any listing real estate
broker. Send the letters certified mail and note in the letters that a paper
trail of the defect has now been created. That letter, once received, will get
some attention.
So now that he knows of the defect, this means he is going to have to fix it
or lower the price of the house by the cost of the repair. Any savvy real estate
agent who is working on behalf of the buyer's interest knows this and should be
working this angle to get the house for the lowest price possible.
But the problem is more complex. Is there even more damage than what you have
discovered? If so, then this may not be a great buy and you might want to think
of the $1,000 as a tuition payment to the College of Hard Knocks. It may be
smarter in the long run to move on and find a house that is in better
condition.