Sewer Inspections More Common

Yes, another inspection has made its way onto the “common” list for home sales, the sewer. Costing $180-200, a plumber or sewer company inserts a flexible probe with a camera and light at the end, and records a video of the sewer interior from the main drain pipe, or stack, dropping under the basement slab out to the main trunk line, typically under the street. This can be anywhere from 30 feet to 100 feet or more of sewer on the property that is owned and maintained by the homeowner. The operator voices over the video being made, noting what he sees – pipe composition of cast iron, clay, or PVC; location of clean out; tree roots, and cracks or breaks in the line. He also will record whether he believes repairs are needed, any maintenance to be performed, approximate area under house or in the yard where the issue is, or that all appears to be normal. Sometimes tree roots block the camera, and need to be cleared out before the inspection can be finished. The video will last several minutes, and is sent by link in an email, along with printed comments. The first time you view one of these can make you a bit queasy, I still am! Surprisingly, though, they are relatively clean as they run a lot of water thru before running the camera in.

Here is the main problem arising from these inspections: Cracked lines that are not posing a problem (I am told cracks in clay pipe are not a defect, while cracks in cast iron are), and bows or dips in the line that are not causing a problem. The buyer views these as a potential, if not imminent issue, while the seller sees it as a condition that may last many years before becoming a “real” problem, if ever. Besides, the lateral sewer insurance programs that most municipalities and Counties offer will not kick in until there is a backup. So the seller reasons that (1) a cracked line will not obstruct the flow – no insurance claim – I have to pay for it myself, which can cost several thousand dollars to dig up the area and repair the section, which is not currently causing a problem, and may never. (2) If it gets to the point of obstruction and backing up, (and it is not just tree roots) let the insurance cover the repair at that point. On the other hand, the buyer reasons that (1) they don’t want to deal with a backup with their stuff in the basement, or having the basement or yard torn up, plus having to pay the deductible (usually $500); and (2) problems under the house itself are not covered by the insurance programs, only sections from the foundation out to the trunk line.

Who is right? When this began a few years ago, the seller won this debate most of the time, and possibly paid a credit to the buyer for any future repairs. Nowadays, if the issue is under the house itself, the buyer is getting the repair paid by seller more often, and if out in the yard not so much, although partial seller credits are still fairly common either way. It comes down to how much the buyer wants the house, and if the seller thinks they can sell it to the next buyer while disclosing the issue and not having to do it for them, plus all the other stuff that goes with terminating a contract and dealing with other repairs on the list. Note that condo buyers are not getting this inspection done, as the general rule is once the drain goes into the wall or under the floor, it is an Association responsibility. On villas, check the Association documents to see who is responsible for the sewer line. Also, newer homes are less likely to have this performed as sewer pipes are designed to last many years.

Here’s to clean pipes!

Home Repair Permits

Does the thought of getting permits for mundane jobs around the house make you groan?  That would make you perfectly normal.  Unfortunately, when you go to sell your home, you may be groaning even more.

Depending on where you live, your city or county planning & zoning or public works department controls building permits.  This differs from a code inspection and occupancy permit (which can be required by your city/county and fire dept) upon transfer, which is an overall safety inspection.  A building permit is issued for specific repair and improvement jobs done to your home during your ownership.  They can be very large or very small, and typically include structural, electrical, plumbing and heating/air conditioning work, but also for fencing, solar panels, termite damage, some drywall installations, exterior drainage, even tie walls and playsets above a certain height.  Most of us understand and comply with the permit process for major renovation projects on kitchens, decks and room additions.  Some are questionable like minor remodeling projects.  And then there are those that don’t make much sense – replacing the toilet seal or replacing a window with a smaller one.  Many folks think this is just another revenue producer for the government.  I believe that most of this is for our safety and protection, but can be conservation related (some plumbing regs) or for aesthetics (which way the fence faces).  The revenue certainly offsets the cost to the city/county, but I do not believe it makes them any money in the end after paying their staff and can even be a financial loss.  This process is mainly for the health and benefit of the resident population.

So permits – Did You or Didn’t You?  Upon selling your home, the Realtor will have you complete a seller’s disclosure.  This is very detailed and (the STL version) includes a section addressing repairs to structural elements and “all significant additions, modifications, renovations and alterations to the property during your ownership”; and asking if required permits were obtained.  Many of us assume the contractor applied for any required permits.  Unfortunately, that does not always happen.  Time and money are two important commodities in business, and contractors like to save both, besides not having a regulator nitpicking their work, and wanting to give a competitive bid.  Some ask if you want one, or even require YOU to apply for it.  Read your agreement with them.  There are also many jobs that don’t seem big enough to require one.  In fact, St Louis County, which does unincorporated areas and many municipalities that contract with them, posts a list of things that do NOT need a permit in addition to the list that does.  Seems like they are the same length!  See http://www.stlouisco.com/YourGovernment/PublicWorks/Permits/BuildingPermits.

** A common misconception is that you do not need a permit if you don’t “move the plumbing”, which is not always the case.
** Some appliance stores are charging for permits for dishwasher replacement.  St Louis County requires a master plumber for this job, and to submit a Certificate of Replacement in lieu of a permit, unless it is in a different location which does require a permit.
** St Louis County allows a homeowner to do their own plumbing work that requires a permit if they can pass a test.
** I have had two client cases where a city or fire department, being called by a seller applying for a code inspection after going under contract, realized that a recently finished basement or plumbing work was not permitted, and required some drywall to be removed to check things out.  This cost the owner $800 on one and $2500 on the other to redo and patch.  This is rare but can happen.

If you ask me, I would have to advise you to get the permits as needed.  If you decide not to, or have already completed work without, just answer the question honestly and say no, or I don’t know.  Be aware that the public can call a city or county and ask for the permit history on your home.  If it is a common area not to get permits, most buyers do not consider this an impediment to buying, especially if you produce the paid receipts and lien waivers from professional contractors.  And the longer ago it was, the less likely to be an issue.

Happy permitting!

Pre-Listing Inspections – Should You?

Years ago I spoke to home sellers about considering a general inspection of their home prior to marketing, to afford more time to make needed repairs, avoid potentially derailing the sale, and to present a more purchase-ready home. This idea had limited success, as I had to add that overwhelmingly, buyers would still have their own inspections which would uncover more problems or call into question items that were deemed acceptable the first time around. Unfortunately, we have not reached the point where most buyers simply accept results of a previous inspection, partly because the seller paid for it, and did the inspector perform a “full” inspection. Additionally, buyer’s agents may feel a bit of negligence if they recommend to their client to accept the existing inspection and something wrong is uncovered after they move in. Also know that once you are made aware of defects in your home, you are obligated to repair or disclose them to potential buyers.

Is it time to bring this option back to the forefront? As long as homes are selling briskly, as they have been the last few years, it is doubtful. There is not much need to add incentives to sell homes right now. However, once the market turns soft, and the buyer demand has weakened, it may be time to not only revisit this issue, but a host of others that can appeal to many buyers and set your home out in front of the competition.

Consider all of the processes a buyer and their agent completes in 4-6 weeks today to close on a home purchase: (1) Prepare and turn over earnest money; (2) Order, pay for and attend multiple inspections – which now typically include a full building, a termite, a gas, a sewer, a city code, and a radon – even more can be added; (3) Battle with the seller over inspection items and what they will fix; (4) Wait up to 2 weeks to receive and review condo or subdivision rules and regs; (5) Haggle over home protection plan details, order and get to closer for payment; (6) Apply for the mortgage and survive the processing/underwriting ordeal; (7) Deal with a potential low appraisal and renegotiating the sale price or possibly losing the sale; (8) Complete a successful title search and survey and work thru any problems; (9) Confirm no roadblocks obtaining homeowners insurance; (10) Verify repairs on inspection items have been completed satisfactorily; (11) Confirm home is not in a flood plain; (12) Request and review irrigation backflow certification from seller; (13) Confirm nothing more went wrong with house before closing on final walk-thru (14) Hope you don’t lose your job or hurt your credit between loan commitment and closing, which can place you into default; (15) Cross your fingers that mortgage rates do not increase before you lock in, or closing is extended past the lock expiration; (16) Review all closing documents prior to signing, verifying loan details and closing charges are correct; (17) Arranging for utilities to begin in your name; (18) Collecting keys, codes and garage door openers. There are many other steps that happen in the midst of these main ones, but for sake of space I omitted.

If the seller were agreeable to having as many of these items as possible completed prior to going on the market, it could shrink the waiting time to move into the house tremendously! That equals less stress for both parties and less time for things to go awry. The loan process is the most difficult for the seller to control, but we can find lenders who emphasize quick and easy processing, and if a cash transaction, eliminates this headache entirely and truly opens the door to a very quick and easy closing. The seller must be willing and able to move out quickly, or ideally have it vacated.

Happy inspecting!