Frequently Asked Questions

It has been a fierce seller’s market on the Main Line. Sellers frequently compare offers based not only on price, but also on the risk that the transaction may not reach settlement. As a result, an offer with fewer contingencies can be more attractive than a higher offer with inspection, financing or appraisal contingencies. For example, a seller may select a slightly lower cash offer with no contingencies over a higher offer that depends on an appraisal or gives the buyer the right to terminate after an inspection. That does not mean buyers should take unnecessary risks. There are many factors to consider and discuss to determine what matters most to you.

When you have a general home inspection contingency, the buyer has a specified time to conduct due diligence. An inspector will go through the home with the buyer, examining the structure and systems. A detailed report is prepared. Reports often include recommended repairs, future maintenance items and helpful information about how the home operates.

After we have reviewed the report together, the buyer may ask the seller to:
• Make certain repairs
• Provide a credit at settlement (or reduce the purchase price)
• Or agree to a combination of these options

In Pennsylvania, the ball is in the buyer’s court. If the seller declines the buyer’s request, the buyer may choose to move forward with the purchase or terminate the agreement. If the seller accepts the buyer’s proposal, the buyer is obligated to proceed. However, this is often a period of negotiation, with both parties working toward a mutually satisfactory agreement.

Waiving the inspection contingency places the risk of undiscovered problems on the buyer. In a competitive situation, however, some buyers decide that they need to waive it to have their offer considered.

This decision should never be automatic. We look at the home’s age, condition, disclosures, maintenance history and known regional/ neighborhood concerns. If the seller permits it, a walk-and-talk inspection can help the buyer make a more informed decision before submitting an offer.

A walk-and-talk is a limited inspection conducted before an offer is submitted. An inspector walks through the property with the buyer and looks at accessible systems and major components.

Because the time is limited, it is an overview or mini-inspection. A roof may be viewed from the ground, a ladder or with a drone.

The seller’s permission is required. Buyers can take notes, photos and/ or videos. Videos can be especially helpful when the inspector explains how a system works.

A walk-and-talk reduces the buyer’s risk when a full inspection contingency may make an offer less competitive.

There are creative ways to address this. You can shorten the time period, offer to pay a portion of anything uncovered or remove your ability to negotiate. In this case you could still walk away but not request credit or repairs. This is best discussed on a case by case basis as each situation is unique. We can guide you in how to win the offer and protect yourself.

In a perfect world it means that you want to know how the systems work and how to best maintain the property. Some sellers won’t permit this even after a home has gone under contract. An executed agreement of sale permits two walk-throughs of the property - without professionals. The intended purpose is to measure and make plans. Request for an information only inspection should be a part of the offer upfront. Again, this depends on the seller and the circumstances. If a property has been sitting on the market or doesn’t have competing or expected offers, there is more room to negotiate. We can advise you.

Most issues found during an inspection can be addressed, and there is often more than one way to solve a problem. But sometimes an inspection uncovers something too costly or complicated for a buyer to take on.

We represented a buyer purchasing a property with a buried oil tank. During the inspection period, we discovered that the tank had leaked. It needed to be removed, and the contaminated soil had to be tested and remediated. The estimated cost was approximately $40,000—and until the tank is removed, there is always the possibility of finding a bigger problem.

The seller was unwilling to assume any of the cost. Once the buyer understood the financial and environmental risks, they decided to walk away.

Stucco is a cement-based exterior finish that goes back to ancient times. When it is installed correctly, it can perform well. When water gets behind it and cannot escape, however, the sheathing, framing and windows may deteriorate without obvious signs on the surface.

Stucco problems became particularly prevalent in southeastern Pennsylvania in homes built from the early 1990s through the late 2000s. This is considered the highest risk. However, the quality of the original installation and ongoing maintenance matter more than the year alone.

We once represented a buyer purchasing a stucco home built in the 1970s—well before the period most commonly associated with regional stucco failures. The buyer wisely elected to have a specialized stucco inspection anyway. It revealed failed stucco, rotted windows and mold.

The seller believed the home had already been “discounted” because a lower offer was accepted based on the accumulated days on the market. They were unwilling to provide a credit for the needed work. The buyer walked away.

Usually not. There are different levels of stucco inspections. A Level One inspection is visual and may include infrared thermal imaging and electronic moisture meters. These are used from inside the home to uncover potential issues. This may be included as part of a general home inspection.

A building-envelope inspection is invasive and requires the seller’s written permission because the stucco inspector will drill small holes and take moisture readings with a probe in various areas. A core sample, larger hole/s, may be taken to determine if the wood underneath has rotted or deteriorated. The inspector will pay close attention to the areas around windows, doors, rooflines and decks— places where water is most likely to get in.

We will research similar homes in the neighborhood to learn whether neighbors have experienced problems or replaced their stucco. To protect the buyer, a full stucco inspection is usually our recommendation. Or the buyer can assume the worst and adjust their offer accordingly. Note - manufactured stone veneer can also be problematic and should be treated like stucco.

PVC pipes are installed through the basement floor or foundation. A fan pulls the radon gas from beneath the house and vents it safely outside, before it can enter the home.

Depending on the home’s foundation and the radon levels, the system may need more than one opening in the floor. Make sure to rest the radon level after installation to make sure the system is working properly.

You should test for radon either during the transaction or after purchasing the home. Whether to include a separate radon contingency depends on the level of competition, the home and your tolerance for assuming the cost of mitigation.

Many buyers choose to waive the radon contingency because remediation is generally straightforward and relatively affordable compared with structural, environmental or major mechanical problems. However, waiving the contingency does not mean ignoring radon. I recommend testing after settlement if testing was not completed beforehand.

Air quality tests need to be taken inside and outside at the same time for comparison purposes. The air sample is sent to a lab that provides a report of the types of mold and spore counts found. This can be disconcerting but mold is present in this lush area. If the home inspector suspects mold or voices a concern, then we would recommend a test. Alternatively if it is confined to a small space, the inspector may suggest that you simply remediate that area. There are many ways to prevent water/moisture intrusion. This includes proper grading away from the building, clear gutters and downspouts that carry water away from the home. An inspector will check and make note of needed improvements. Even in unfinished basements, a dehumidifier should be used during the summer months.

If the home is older or a tree or trees are in the path, it is a good idea to do a sewer line inspection. Alternatively Aqua provides annual low-cost insurance in the event of a crack or backup in the sewer line. Many homeowner insurance policies offer it as well, possibly as an add-on.

In homes built 1880-1940 there could be knob and tube wiring. As they do renovations, portions of the home get updated so many homeowners are unaware that it still exists. Most insurance companies require new owners to replace the knob and tube. There may be a period of time stipulated in which to complete it. If the seller has not provided a home inspection, then the buyer should have an electrician provide a quote. Ask us for the contact info of a trusted contractor.

A property may have one or both, especially as you go further into Chester County. It is important that the well and septic are in different sections of the lot. Ask for records from the companies that service the well and the septic system. For the septic, there should be evidence of repairs suggested and made and not just cleanouts. You’ll want to order a water quality test in addition to a well inspection.

An appraisal contingency protects the buyer if the home appraises for less than the agreed-upon purchase price. In Pennsylvania, we use an Appraisal Contingency Addendum, either with or without a mortgage contingency.

If the appraisal comes in low, the buyer may be able to renegotiate the price or terminate the agreement without losing their deposit, depending on the terms of the addendum. This helps protect the buyer from having to overpay or unexpectedly bring substantially more cash to settlement.

If that happens, the buyer may:

- Pay the difference in cash.
- Ask the seller to lower the price.
- Negotiate to split the difference.
- Explore other financing options.
- Terminate the agreement and receive the deposit back, if permitted by the appraisal contingency.

When a property appraises for less than the agreed-upon purchase price, it is called an appraisal gap. For example, if you agree to pay $850,000 and the home appraises for $820,000, the appraisal gap is $30,000.

Since the lender bases the loan on the appraised value, the buyer mayneed to bring additional cash to settlement.