Tag: duediligence

What to Expect From A Home Inspection

Posted on by Beccah Lee

You’re officially under contract and on your way to buying your new home! You might be picking paint colors, packing boxes and saving decorating ideas. I love that for you, but before we get too far ahead, let’s pause and focus on how the home actually functions. That’s where the home inspection comes in.

Buying a home is a big deal. The inspection is your chance to look “under the hood” before you fully commit. This is your time to learn as much as you can about the home’s condition. The inspection helps you avoid major surprises after you move in and make sure you feel confident about your purchase.

What Are the Most Common Types of Home Inspections?

1. Home Inspection (The Big One)

This is the main inspection. A licensed inspector checks the major parts of the home. This includes the roof, foundation, structure, plumbing, electrical, HVAC, windows, insulation, and more.

They test outlets, run appliances, look for leaks, and check the age and condition of systems. They focus on safety, function, and overall condition.

Inspectors can’t see inside walls or predict the future. But they are trained to spot red flags and signs of wear that could become bigger problems later.

2. Radon Inspection

Radon is a natural gas that comes from soil. You can’t see it, smell it, or taste it. Long-term exposure can cause serious health issues, including lung cancer.

A radon test measures the level of gas in the home. If levels are high, a mitigation system can be installed to lower them to a safe range.

3. Sewer Scope or Septic Inspection

Sewer Scope:
If the home is connected to public sewer, a small camera is sent through the sewer line from the house to the street. I like to call it a “colonoscopy for the home.” It checks for cracks, blockages, tree roots, or collapsed pipes. Sewer repairs can be expensive, so this test can prevent a costly surprise.

Septic Inspection:
If the home has a septic system, this inspection checks the tank and drain field. It may include pumping the tank and testing how the system works. Since septic systems are underground, this step is very important.

What’s in an Inspection Report?

The report is usually broken into sections like roof, exterior, foundation, plumbing, electrical, HVAC, attic, interior, and appliances.

Each section explains:

  • What was inspected

  • The current condition

  • Any issues found

  • Maintenance tips

The report includes photos. It is often color-coded to show the level of concern:

Minor Defects or Maintenance Items – Small repairs or normal upkeep. These are common in most homes.

Marginal Defects – Items that are not working perfectly and may need repair by a handyman or contractor.

Significant Defects – Items that are not working properly or may be a safety concern. These often need further review by a specialist.

Once you receive the report, we’ll review it together. If needed, we can bring in specialists like a roofer, electrician, plumber, or structural engineer for further evaluation and estimates.

It’s important to remember: there is no such thing as a perfect inspection report. Even new construction homes have findings. That’s normal. Inspectors are trained to document everything they see. The report can feel long and overwhelming, but I’ll help you sort through it. We can also ask the inspector for clarification anytime.

What Happens Next?

After we review the report, you have three main options:

  1. Move forward as-is if you feel comfortable.

  2. Ask the seller to complete repairs before closing. (Some repairs may be required by the lender or appraiser.)

  3. Request a seller credit or price reduction instead of repairs.

From there, I’ll negotiate on your behalf. I’ll present your requests, manage the back-and-forth, and help you decide how to respond.

At the end of the day, the decision is always yours. Everyone has a different comfort level of what they do/don’t want to take on. Would you be happy moving forward with things as-is? What if repairs/adjustments were made? Or, would you have a sense of impending doom and be overwhelmed leading up to and after closing day? If your answer to that last question is a “yes” or even a “maybe”, this might not be the one for you (and that’s okay!). I’m here to help you find THE home, not A home!

Thanks for reading and feel free to reach out! I’m always happy to answer questions or help in any way!

Instagram: @HomeswithBeccah
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The least sexy and most important part of real estate…due diligence!

Posted on by Living Room Realty

Due diligence. It’s a term we use often that covers a TON of ground. Many buyers may understand the due diligence that comes after an accepted offer: conducting inspections and reviewing the property disclosures and preliminary title report. But a lot of due diligence can be done prior to making an offer (or seeing a home). Here are some ways to do research ahead of time and avoid a possible headache later.

Check the tax record. Your agent can access a property’s tax record on the RMLS. The tax record gives a lot of key information about a property. Most importantly, you can compare the number of beds, baths, and square feet on the tax record vs what is being advertised. This may be an indication that some of the finished rooms or bathrooms are un-permitted. Plus, you can verify property taxes and learn if the owner is an individual(s) or a business entity, which may impact your offer strategy and terms. (Take your sleuthing to the next level by googling the sellers).

Research recent and historical permits. PortlandMaps is a useful tool for properties in Portland, and GreshamMap and Milwaukie Permit Search can be used for properties in those areas. You can see what permits have been pulled for a property in the recent past (10-20 years), as well as historical permits for plumbing, cesspools, and/or underground storage tanks.

Check zoning. The above sites (along with WashingtonMaps and ClackamasMaps) can also tell you what kind of zoning a property is in. Zoning tells you what can be built on the property as well as what the intended use of a property is. A bit of research on a county’s zoning department website can usually turn up pages and pages of zoning code that you never thought you’d be looking through.

Historical District or Designation? While most homes are not in a historical district, if you’re looking to purchase in neighborhoods like Irvington or Laurelhurst, you’ll want to study up on what is required of homes in these areas.

HOA or CCRS? If the property is part of a Home Owners Association, or is subject to Codes Covenants & Restrictions, you may be able to learn more about what is and is not allowed at a property. While these will definitely come up during your due diligence period, your agent may be able to help you get your hands on these documents prior to making an offer.

Check Oregon DEQ databases. If there is a historical permit for an underground heating oil tank and the Seller has no proof of decommissioning, you can check with DEQ. This DEQ page contains 2 links to 2 databases: a list of decommissioned tanks that were not leaking, and a second list with decommissioned tanks that were.

Review past listings. As your agent if there are any past listings on the RMLS for a property. If there are (and if they come with photos – many listings prior to 2010 had a lot fewer photos than we are allowed now), you may be able to tell a lot about what was done (and what wasn’t!) since the last time the property sold.

Ask for past inspection reports. If the property sold recently and the Sellers are willing to share, you can see what came up in the previous inspection. While this can be useful, I ALWAYS strongly encourage a buyer to conduct their own inspections once in contract.

Research schools. And I don’t mean by looking at the rating that an online school ranking website gives you. As a previous public school teacher of many years, I will be the first to tell you there is SO much more to a school than what standardized tests will tell. Look at the school websites, reach out to the PTA/PTO, schedule a tour (this may not be an option during COVID), and if possible, talk to families who attend the school. If you don’t know how to get in contact, see if your agent can reach out to their fellow agents to see who has clients who might be able to share their experiences.

The old fashioned drive-by. This one is classic…I like to tell my clients, you can change the house, but you have no control over the neighbors. Save even more time by utilizing Google street-view and ruling out properties without even having to drive past them.

These are just a few ways my buyers and I educate ourselves before touring a property. If you have questions about any of these resources, I am always happy to chat! Happy house-hunting!