Houses for sale commonly are staged to look their best. Buyers are inclined to believe what they see, viewing the home with their hearts. To minimize post-closing turmoil and expense, you need to understand how an attractively presented property might hide shortcomings. When sellers pinch pennies, you, as a buyer, could end up in a pickle.

Who did the termite work?
Pest control usually involves to damage by water to wood, as opposed to bugs eating wood. When all the pest control work in a report is finished by the licensed pest company that performed the inspection, it is warranted. If any work was missed, or is not satisfactory, that company is obligated to come back without charge to make corrections. 

This assumes, of course, that the pest control firm is notified about the problem within a reasonable time after completion. The longer you take to call back the company, the less likely it will accept responsibility.

Often, however, properties are marketed where someone other than a licensed pest control operator handled a portion or all of the termite work. It could be either the seller or someone hired by him. In these instances, buyers do not have the protection of a warranty. This is a red flag. 

Be particularly circumspect when there is a termite report from one company and a "clearance" or certification from a second outfit, although neither of these organizations did the job. This was exactly the case for a couple that bought in this area not long ago. 

Now, they have unexpectedly been transferred out of town. Prior to putting their house on the market, they ordered a termite inspection. They were dismayed to receive a report in excess of $20,000; half was deck damage.  How could this be when there was a clear report when they bought?

The former sellers had hired a contractor to patch and paint the deck right before the house was listed. They then found a pest control operator with flexible standards who certified it as being free of rot. This did not signify, however, that the repairs had been completed correctly, or were likely to last.

It is no accident that the inspector who did the original inspection was not invited back to certify the sellers' work. Although this may not be considered a cover-up, it is an example of where buyers need to be cautious.

Had the buyers (who are now sellers) ordered a follow-up inspection by the original inspector, they would have discovered that the deck was not done in a manner acceptable to him. 
This, most likely, would have lead to negotiations between the buyers and sellers about who was to pay for deck repair. There is no way to know the outcome, but at least the buyers would have had the option of canceling the contract if they were not satisfied.

Renovated and gorgeous
The average buyer who sees what appears to be a nicely renovated house does not think too much about its underlying systems. Unfortunately, it is typical to encounter difficulties with some or all of these systems: electrical, plumbing, heating, framing, foundation, drainage, and roof. The last three items have the potential to be the most expensive.

The updating may have been partially or totally handled by the seller himself or by people, not necessarily licensed contractors, he employed. Many times, some or all of the work is done without permits. In these situations, you need to be concerned about both quality and completeness. 

Time after time, I hear stories of buyers who discover undisclosed issues after close of escrow. They frequently involve a rehabbed, charming, older home, built between 1910 and the early 1930s. 

I always inquire about the condition of the foundation and drainage in properties of this age. Although any information is helpful, I do not rely on the seller or his agent. A comprehensive answer requires the services of a competent, experienced home inspector. If he has concerns, I then recommend further inspection by an engineer. 

Regrettably, in their excitement, and out of fear of losing out in competition, some buyers waive home inspections. Rationalizing that a good-looking house must be one in good condition, has been the downfall of untold inexperienced buyers.

As a buyer, it makes sense that you take responsibility for asking appropriate questions and doing inspections during the escrow period. Resolving disputes about condition and disclosure after you own the property can be a complicated, costly and aggravating process.

Final thoughts
A homeowner may spiffy his house for sale without knowing it has a drainage deficiency and a rotated foundation. Nonetheless, once it is your house, it will also be your headache.

Pay particular attention to gussied up homes bought on "spec." With the prices of local property so high, including fixers, some less-than-scrupulous individuals may cut corners in order to make or maximize a profit.  When they do so, it is ordinarily in the less visible areas.

Always insist on your own inspections. Never assume that pretty means perfect.

Related Articles: Research Permit History; Foundations Are Expensive; Not Just Termites, Part 1 and Part 2