Can Real Estate Buyers Protect Themselves?
January 15th, 2010 categories: For Buyers, West Chester Ohio
If are currently looking to purchase real estate in greater Cincinnati and you read the article in yesterday’s Wall Street Journal ”What Home Sellers Don’t Tell Buyers”- you are probably wondering what you may be missing when you look at a home or condo.
The article offers some good information for potential buyers but in Ohio many of the “problems” are addressed through use of the Ohio Residential Property Disclosure Form and by your home inspector(s). I would like to address some of the main points discussed in the article and provide you with some resources. However before I go any further -remember real estate is like any other transaction between a buyer and seller (even though it is usually the most expensive) and if somebody sets out to intentionally deceive potential buyers the usual fix is to pursue legal action. This sometimes happens between buyers and sellers (and agents and brokerages) though the majority of the sales close without any problems.
Article highlights:
- Disclosures about any problems (form) which should be disclosed. The Ohio Property Disclosure clearly states it covers items that occurred in the last 5 years and “uncorrected problems” older than 5 years. So if the basement flooded in 1996 because of a sump pump failure and the sump was repaired or replaced stopping the problem-the owner does not have to disclose. If you have some questions-add them to contract and get answers.
- Lot size. Most Realtors rely on the dimensions provided by the County Auditor sites. If you concerned about lot lines for fencing – then either the seller and/or the buyer needs to pay for a stake survey to ensure accurate boundary lines.
- Termites-wood eating insects/pests should be a routine part of the home inspection process. The forms are fairly clear cut-there is either evidence of damage and/or active infestation or the property is clear. Sometimes inspectors find evidence of old damage-then buyers need to decide whether they want another opinion or treatment.
- Flooding- is the property in a flood zone? If yes-when was the last time it flooded? Are there any tell tale signs of water damage in lower level? For buyers with allergies this is a real problem so you if you have doubts I would suggest paying for a mold inspection. Remember if the property was flooded 10 years ago and the problem was corrected- the seller is not obligated to disclose.
- Taxes and maintenance- well taxes are also on the County Auditor sites. Most of the area utility companies will give you a 12 month rolling billing average. Obviously 2 people living with the thermostat set at 64 degrees in the winter will consume less energy than the normal homeowners. As far as home maintenance, hopefully your home inspector can tell you if the property has been well maintained. It is hard to gauge maintenance costs -I don’t know about anybody else but some years we spend a lot more on maintenance and some years we spend very little. Sort of depends on what’s happening with the property at any given time.
- Quiet neighborhoods- always good advice is too drive through the area at various times of the day and evening. I’ve had clients go back on their own and knock on neighbor’s doors with questions about area. If you are concerned about crime-contact the local police precinct.
- Pool and golf courseare planned…..make sure there are sufficient funds to build the promised amenities. Today’s economy has taken a toll on developers and builders. Their intentions may be good-but if you are buying a lot on a “golf course”-I would suggest you investigate thoroughly before assuming the course will be built. The second thing to watch out for is development in vacant areas. If the property backs up to large swatches of vacant land (unless the land is part of the development’s “green space”) nobody can promise you that retail or multi-family will not appear there in the future. If you have questions -check with the local zoning board to see what can be developed in your back or front yards.
And finally one thing the article did not hit upon- purchasing a buyer’s title insurance policy at closing.
So thanks to the Wall Street Journal for pointing out some of the rough spots for buyers- just remember to ask questions and get the answers in writing. If you have any additional questions- send me an email!
| Discussion: Comments Off
Both comments and pings are currently closed.
[...] Can Real Estate Buyers Protect Themselves? thecincyblog.com/2010/01/15/can-real-estate-buyers-protect-themselves – view page – cached January 15th, 2010 categories: Cincinnati, Ohio, Real Estate Buying, West Chester, Ohio [...]
The blog was absolutely fantastic! Lots of great information and inspiration, both of which we all need!