Finding Structural Problems During Escrow ? Upscale Home Example

When buying and selling homes, the property purchase is often subject to a satisfactory home inspection being done. Now and then, a home inspection uncovers severe structural problems. Here's an example of a situation in an upscale neighborhood.

Severe Structural Problems

Does the buyer walk away when there are serious structural problems? Yes, but not always. A lot depends on the constraints facing the buyer (are they relocating to start a new job, or just "moving up" in the same general area?) and on how much the buyer likes the property. The attitude, maturity level, communication skills, and flexibility of both buyer and seller also make a huge difference.

It's easy to see a deal blowing up in this situation. Let me tell you about a situation I saw that actually worked out.

Structural Problems ? Upscale Neighborhood

The first involved two professional couples and a house one couple wanted to sell and the other wanted to buy in an established, up-scale neighborhood. The house was a colonial style, all brick, very traditional house built about 15 years ago using top of the line materials. The kitchen and bathrooms had been modernized and upgraded within the past 3 years. Top of the line materials (marble, ceramic tile, and granite) were again used.

The house was located on an acre lot that sloped gently down to the street in the front. About 10 feet from the right side of the house, the lot sloped steeply away to a pretty stream. The lot backed to a treed area of a beautifully maintained, historic estate owned by a university and open to the public on a fee-paying basis.

The home inspector noticed that the chimney on the right end of the house was pulling away from the house. It was about 2 inches away at the top, but the bottom was still attached. In the basement, there was some cracking along the wall the chimney was on. The home inspector would not certify the house as structurally sound, but recommended that an engineering firm take a look at it.

The buyer asked the seller to have an engineering study done. The seller was upset but didn't go to pieces. Something was causing the chimney to pull away, so they called in an engineer. For legal reasons, the sellers also needed to understand what the problem was.

The engineer determined that shrink-swell soil was causing serious foundation problems. They recommended digging down a lot further than the original footers and constructing an elaborate new support system. The sellers agreed to do it and the buyers agreed to delay closing until the work was completed. Thirty thousand dollars later (out of the sellers' pocket), the transaction closed.

In Closing

When considering the above example, what is the moral? If you keep a cool head and look for solutions, structural problems need not be a deal killer.

Raynor James is with http://www.fsboamerica.org - providing homes for sale by owner, "FSBO", properties. Are you thinking, "Should I sell my home?" Visit http://www.fsboamerica.org/seller.cfm to sell your home sale for free for one month.

---

How Can Real Estate Investors Profit From The Internet?

The Internet is a powerful marketing tool, but just how... Read More

Investing in Real Estate Profitably: Eliminating the Need for Mortgage Insurance

In an earlier article, we presented various options for ensuring... Read More

Forclosure And The Durrett Rule

It's probably happened to you...Folks learn that you know something... Read More

The Devine Secrets Of The Ya Ya Lease Purchase Hood

The biggest secret of conducting a successful lease purchase business... Read More

The Psyche of The Seller and The Tenant Buyer

For those of you who were not psychology majors the... Read More

Real Estate Investing Is A Better Gamble Than The Lottery

Real estate investing begins when you move to the starting... Read More

Safe, Scenic & Secure Sussex County Delaware

As I write this, there is a considerable concern about... Read More

Property Investing

Wrapping a property is a simple concept that can create... Read More

The Many Ways To Profit From O.P.P.s Multiple Cash Streams

In a previous article we introduced you to the concept... Read More

Refinancing Your Home Loan? When Should You Refinance Your Home?

If you have a current mortgage and are unhappy with... Read More

Youre Not Paranoid: The House Really Hates You

If you've just bought a house, you may be able... Read More

The Listing Agents Role in Selling Your California Home

Advertising to the "Public"Every home seller likes to be assured... Read More

Secrets of Making Money from Real Estate - Part 1

There are three investment vehicles which can make you rich.... Read More

Product Review of Carelton Sheets No Money Down Course

Real estate continues to be a very important part of... Read More

Zero Down Real Estate Investing

Zero down? Why would a seller want to walk away... Read More

How to Qualify For 90% Plus Commercial Financing!!!

There are three important questions that you must understand and... Read More

How To Buy Real Estate - Yes, YOU CAN!

If you want to buy a house but don't think... Read More

Fixing Houses: Mixing Your Own Paint for Savings and Harmony

To make the maximum profit on your investment properties, you'll... Read More

Property in Northern Spain

If you're looking for the 'real' Spain where the culture,... Read More

Escrow From a California Homeowners Perspective

The Escrow ProcessBoth Buyer and Seller deserve the assurance that... Read More

Property Investing ? Port Melbourne Life on the Edge

Property investing prices pick up following a cooler winter last... Read More

An Estate Planning Primer

An estate plan can be designed by clients and their... Read More

Purchasing Property With No Money Down: My Personal Experience

Have you ever seen those infomercials about buying houses with... Read More

Real Estate Investing in Rentals ? the $10 Million Real Estate Investing Mistake

Renting to tenants is no longer "where the money is"... Read More

Utah Real Estate

Looking to buy real estate in Utah? The market has... Read More

Dubai or not to Buy? A Short Assessment of the Dubai Property Market

Never has there been such an ambitious and creative drive... Read More

How To Get The Best Rental Accommodation In The Area By Using Your Capital

My report is for you to use your power to... Read More

Conventional Financing For Wholesale Deals

This info is very important for both new and experienced... Read More

Buying a Vacation Home

You'd like to buy a vacation home, but you're not... Read More

What?s Your Style? A Guide to America?s Most Common Home Styles

Styles of houses vary across the country. From the New... Read More

Eight Out of Ten Millionaires Surveyed Made their Fortune in Real Estate - How?

Consider the statistic in the title for a moment.8/10 millionaires... Read More

Choosing An Estate Agent

With so many estate agencies vying for your business, choosing... Read More

How Home Buyer Rebates Work

In today's tight housing market, many buyers are looking for... Read More