If you have ever sold a home, then you probably know the various potential obstacles that must be overcome to successfully reach the closing table. From the initial price negotiations to loan contingencies and appraisals, there are plenty of opportunities for any deal to be cancelled. Of course, another major hurdle that must be cleared is the home inspection. Below we will discuss some of the most common home inspection related deal breakers in real estate transactions.
Causes of a release and cancellation of contract
- Electrical issues/outdated electric panel: Believe it or not, faulty electric panels deemed to have an increased fire risk are one of the most common items cited in a home inspection report for older homes. In some cases, the buyer is unable to obtain insurance unless the panel is replaced. As a seller, you may want to consider replacement prior to listing the home for sale.
- Roof leaks/issues: Perhaps no expense is more intimidating to a home buyer than the thought of having to replace a roof. Oftentimes, home buyers are spending a majority of their savings in order to purchase the property and do not have an additional $30K+ to have a new roof installed.
- Plumbing issues: In particular, underground sewer lines can be particularly problematic for older homes. Depending on the age of the home, oftentimes the sewer line is comprised of cast iron piping which is estimated to have a lifespan of approximately 50 years. Depending on the location of the sewer line, it is possible that invasive tree roots may seek water in the line resulting in cracks and breaks. Needless to say, a sewer line replacement can be quite a costly and disruptive endeavor.
- Mold: The presence of mold, even non-toxic mold, tends to create an emotional response. Given the hypersensitivity to respiratory health due to the pandemic, the presence of mold can quickly derail any home sale. Sellers are simply better off to remove it and fix the source of moisture that caused it.
With the current real estate market being so competitive, many buyers have opted to forego their home inspection in order to make their offer more attractive to the seller. Of course, this is highly risky and may potentially lead to major unforeseen expenses after closing. Oftentimes, buyers have reported that they would not have purchased the property had they known the extent of the repairs needed. As a seller, it is important to eliminate any potential pitfalls prior to listing your home for sale. In some cases, having a home inspection prior to listing your home for sale may be a good strategy. This way, you can make any necessary repairs prior to listing it on the market.
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!