The local city council will probably vote on Monday to make any real estate transaction dependent on the seller having a pre-sale inspection on the property to be sold. The results of the inspection must be shared between buyer and seller and, here is the sticking point, any deficiency found in the property structure, utilities or anything else the inspector finds to be a of a high priority, must be fixed prior to the sale of the property.
I have trouble with some of this government oversight. Even though I would ( and have ) probably get any property I sell inspected prior to the sale just to cover any post-sale buyer's remorse, I don't want the government telling me I don't have a choice.
On the other hand, I would support loan originators requiring this from their buyers. Way too many home estimates are drive-buys. The holder of the loan should make sure what they are loaning the money for is in good condition. The government does this with FHA loans where they require a pre-buy inspection.
To the City Council's credit, like everywhere else, they see foreclosed and abandoned properties popping up on every block. These are properties, in most cases, that the city now has to maintain. They don't want a bad situation to get worse. They have already put a hold on creation of any new rental properties. That is a good idea and no longer leaves the easy out for a instant absentee landlord. I'm not sure going the extra step with the pre-sale inspections will be as effective.
And what is the town's cut? I would tend to agree that it would be a good practice for such an inspection as part of loan origination at a good rate or better yet, home owners insurance at a good rate. Both methods would be a better way of pricing the risk.
ReplyDeleteThat’s right its still USA land of the free, and buyer beware.
ReplyDeleteThey should really require an inspection of all the trees on property (or at least on the mandated right-of-way), to make sure none have diseases that could cause it to fall down and kill me while I sleep. Or how about grass inspection? To make sure folks are not wasting too much water that the city provides…..
BIG JG
MMM what should you talk about>>>>>>>>>>........Dont ask me this was your idea.
ReplyDelete