AFTER THE INSPECTION – WHAT NOW?

NOW that we are through the inspection period, what happens now?  Here’s what you need to do:

§  Keep in contact with your lender – make sure that they have ALL documents they need from you.  Remember that they may come BACK and ask for more, different documents, depending what the underwriting department asks for.  Don’t worry – that’s normal.  Just get them any documents they ask for as soon as you can.  Email the lender to tell them you are THROUGH the inspection period and want to make sure they have all the documents that they need.

§  Let your agent know what TIME of day you’d like to close so that they (I) can get you on the closing attorney’s calendar and make sure that the time is all right with the seller.

§  Your agent will get you UTILITY INFORMATION.  But it’s probably best to wait until the week before closing to make the calls and arrange the transfer.  Sometimes companies won’t take your call until AFTER the seller has called to have the utilities taken OUT of their name (in other words, the seller must first call to have electricity turned OFF as of the day of closing – then you call to have it turned ON.  In truth, the utility company never actually disconnects – they just change the name on the account.

§  WATER is a special deal.  The City will require a copy of the signed SETTLEMENT STATEMENT before they will switch water to your name.  Go ahead and print out the application from online, fill it out and bring it with you to closing.  The closing attorney will fax it along with the settlement statement to the water department FOR you from the closing table.

§  PACK if you haven’t already.  Arrange a moving company.  Your agent can get you names/numbers if you want/need them.

§  If the seller has agreed to make repairs as a result of your inspection, you will want to check to make sure those repairs are done.  Hopefully you have requested that the seller provide receipts for any and all repairs either at closing, or preferably prior to closing.  If they are major repairs and you feel more comfortable doing so, you can pay your inspector to come back and inspect the repairs.

§  FINAL WALKTHROUGH – you will want to do one last walkthrough prior to closing.  This can be done on your way to closing, or the day/evening before.  You will be checking to be sure there has been no damage to the property and that all is in order.  IF there is something amiss, the seller is given the opportunity to correct it.  Obviously, if you do not discover it until right before closing, there’s not time for that.  You can either delay closing or ask the seller to put some amount of money aside as surety until the problem is fixed.

CONGRATULATIONS ON YOUR NEW HOME!!!

WE ARE UNDER CONTRACT!

So, you’ve made an offer, the seller has countered, you’ve countered the counter… and after one exchange or many, you have agreed upon the terms of the contract.  What happens now?  First, you need to schedule an INSPECTION.  

An inspection will cost between $350 and $600, depending upon the size and complexity of the home.   You want an inspector who is ASHI (American Society of Home Inspectors) certified.

My favorite inspector is Bryan Dilworth of Cornerstone Inspection Group.  Their website is http://www.atlantahomeinspector.com/ or you can call 770.436.2667 to schedule.  Chuck LeCraw, also an inspector, owns the company and he is great also.  They don’t charge you until the inspection is DONE, so you can schedule without worry (if you are calling before the contract is finalized, something happens and you do NOT get under contract, you won’t have to pay).

Your inspection company will ask if you want a RADON TEST. Radon is an odorless substance which emanates from natural stone in the ground.  It has been shown to cause lung cancer.   The main place we worry about radon is in a BASEMENT – and even if you do have a basement, if it is unfinished and you are not planning to finish it, it is not as crucial.  In fact, the radon testing protocol is that the radon is placed on the lowest FINISHED level, so they would put your radon test on the main floor if your basement it unfinished, where it is highly unlikely that there is any radon.  But if you have a FINISHED basement, I would absolutely order a radon test.

The only areas of town I’ve personally seen radon tests come back POSITIVE are near Chastain (just North of Chastain Park) and Tucker.  Both tests were done in finished basements.  I hear the closer you get to Stone Mountain, the more likely they’ll find radon (it’s released from the granite).    What happens if they FIND radon?!?!  Well, you REMEDIATE it, which consists of plugging up any cracks and bare ground and in some cases, putting in a ventilation system.  It can cost 2,000 or so.  Not cheap.  If you discover radon during the inspection period, it is the seller’s job to pay for it.

Once you have your inspection, your inspector will issue a written report detailing everything he has found that is wrong with the property.  The average inspection report is 26 to 30 pages long, so don’t panic if yours is lengthy.  A lot of it will consist of general information and pictures. With me, your agent, you will decide what to ask the seller to fix, replace or repair – and thus the second big negotiation begins.  You must finish these negotiations within the due diligence period or EXTEND the due diligence period.

The seller can either agree to fix, replace or repair the inspection items themselves prior to closing, or can give you a monetary concession in lieu of repairs.  That monetary concession will have to pass muster with your lender.  Oftentimes a lender will NOT allow a check made out to a third party vendor at closing – instead you’ll have to negotiate more seller-paid closing costs or a reduction in the purchase price.

If the seller agrees to make repair, specify that receipts for those repairs will be provided at least three days prior to closing so that you can be sure that they are done and check to make sure that they are done correctly.