So, you’re ready to take on finding that perfect home here in Columbia. Talking with your Realtor, they mention things about latent defects, state disclosures and home inspections - but what does it all mean?

Although the phrases seem somewhat daunting, they all work together. So, let’s take them item by item.

• State Disclosures - this is the document that all sellers must fill out when selling their properties.  The only ones excused from doing so are new construction homes and foreclosures in some cases.  Although that For Sale By Owner says that he “didn’t get one when he bought the property 10 years ago,” don’t believe them.  The law is pretty clear on this one.  He MUST disclose all he knows about the property on this statement.  If he doesn’t have one, call me.  I’ll give him one to use.

The disclosure statement not only protects the buyer but the seller.  If you are knowledgeable as a buyer about the property and all its faults PRIOR to making an offer, that protects everyone in the transaction.  However, if the seller tries to hide material facts about the home, that could be grounds for a lawsuit after the buyer takes possession of the property.  “If you know it, disclose it” is what I say.

• Latent Defects - These are the items a seller should be placing on his state disclosure form if he or she knows about them.  Latent defects are those issues that aren’t easily detected or are hidden. 

For example, let’s say you flipped a switch and a light did not go on.  If the bulb was simply burned out, that would be more or less a patent defect (more easily seen), but if the light did not go on because the wiring on that side of the house needs replacing, now that is a latent defect.  Those issues are more elusive and not as easily detected.  These items should not only be disclosed on the state disclosure statement, but in the exclusive right to sell contract. 

Sellers are legally obligated to disclose issues within the home.  Does this always happen?  Not always, that is why the third part of this post is most important, the home inspection.

• Home Inspection - This service may cost between $200-400, depending on the size of the property and inspector.  Out of all the money you will spend purchasing a home, nothing comes close to having the highest return on investment than a home inspection.  If your inspector discovers something wrong with the home - for example, faulty wiring, that could mean the $300 you spent just saved you thousands of dollars. 

Once the inspection is complete, the inspector gives you a summary of his or her findings to utilize in requesting the seller fix the defects or give you an allowance to have them fixed post-closing.  All inspectors will find something wrong with every property.  It is their job to do so.  However, the findings can range from little nuisances in new construction to major repairs with older homes. 

Regardless of the age of the structure, EVERY home buyer should have a home inspection completed.  Along with the State Disclosure statement, the inspection is one of the most powerful tools to ensure your satisfaction for many years to come with your home purchase.  If you should have any questions regarding either the state disclosure or home inspection, please do not hesitate to call or email me. 

Your “No Bull” Realtor,

Kathy Smith
Russell & Jeffcoat Realtors, Inc.
(888) 808-4Moo ext. 0
(803) 781-5729
http://www.kathy.smith.net/