Buying or Selling a Home/inspections

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Expert: - 10/9/2007


Question
Hi,
 We are selling a modular home with 12 acres.  Their banker wanted a copy of the original building permit which was done with the original owners in 1984.  I sent them a copy, but he says that they never signed off where it says footing and zoning...foundation, framing etc.  I called the building dept. that had issued the building permit and she said that they never had it finalized and that we will need to hire an inspector to have it done.  Who usually pays for that,the buyer or the seller?  We are from Washington State. Thanks for  your input.  Janet

Answer
What has happened is a common problem in today's world. In most states, the permitting process has three steps:

1 - Pull the permit. This is what everyone does because it's fairly inexpensive, ranging from about $25 to 1% of the estimated remodeling costs if they are above some set level, usually $5,000.
2 - Have the work inspected by the appropriate building and code inspectors. This is the expensive part, and this is where most people quit. Inspections by building and code inspectors range from $50 an hour to $500 an hour, depending on the jurisdiction. Obviously if one just had $50,000 worth of remodeling done at a permitting cost of $500, only to find that all that work is going to take the building and code inspectors 16 hours to inspect, at a cost of $500 an hour, one simply quits.
3 - Have the inspector sign off on the work and close the file. This is the most inexpensive step, usually costing $25 to $100.

It sounds like the original owners made it through step one but didn't do step 2 and step 3 after they found out the cost.

As to who pays for it, it's negotiable, but most buyers will want the seller to pay for any costs associated with ensuring that the foundation and framing are okay.

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Russel Ray

Expertise

Through home inspections, I provide an education about real estate. I'm one of those rare home inspectors who has been involved in real estate in many different capacities: as a Realtor (in Texas), as a property investor/flipper, as a teacher, and as a marketing expert (for Realtors and home inspectors). I believe that my experience as a Realtor and property investor provides me with a different viewpoint about home inspections in that I work for my Clients, but when there are other people involved in helping my Clients, then I firmly believe in helping them, too. That includes Realtors (both the seller's and the buyer's), repair professionals (e.g., plumbers, electricians, etc.). If I can get all the players (seller, seller's Realtor, buyer, buyer's Realtor, and repair professionals) playing in the same sandbox together to accomplish goals as a TEAM (Together Everyone Accomplishes More), then I believe I have succeeded in my job as a home inspector. My profession is, in my opinion, much more than simply documenting the condition of a property and then take the money and run. I am also a rare breed in that I don't believe that one inspection fits the needs of all Clients, and I have led the industry in understanding that fact. For example, the goals of a property investor are far different than the goals of someone buying a property to live in. The goals of a seller (a pre-listing inspection) are far different than the goals of a buyer (a pre-purchase inspection). To that end, I offer 14 different types of inspections, e.g., STANDARD, LIST, RENTER, BASIC, MAINTENANCE, SPOT, and more. I believe in giving the benefit of the doubt to all professionals in whatever industry they represent until they prove me wrong.

Experience

Over 42 years in all aspects of real estate--building homes, renovating homes, inspecting homes, Realtor.

Organizations
National Association of Certified Home Inspector, Better Business Bureau of San Diego

Education/Credentials
Graduate of Texas A&M University; College Station, Texas

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