WATER! Not the word we wanted to hear while standing in a newly constructed home.  My buyer clients and I were visualizing where the flat screen would be placed for optimal viewing. Then the buyer’s home inspector popped his head out from the crawlspace access door and said the dreaded word “Water”…..which doused the enthusiasm of this unsuspecting buyer from head to toe.  

When buying a resale or newly constructed home a Buyer’s Realtor should be explaining the rights of the buyer to hire a home inspector.   In Washington, a home purchase can be contingent upon the buyer’s satisfaction of a home inspection only if a Form 35 (Inspection Addendum) is mutually agreed upon by both parties.   (Form 35 is a northwest multiple listing form)

In this particular case, my client had reached mutual acceptance (with Form 35 included) on a newly constructed home that had been sitting on the market for months during winter and early spring. In the Pacific Northwest, this means the “rainy seasons”.   I advised them to hire a home inspector to which they agreed.    The inspection was moving along very well until water was found in the crawlspace (see photo below). At that moment the $350 charge for this home inspection was justified.  

 Once the buyer’s home inspection is completed and the report provided for review it is recommended for the Buyer and their Realtor to have a meeting. At this meeting it will be determined if the buyer wants to proceed with the purchase based off of the inspection report. Sometimes, the items found by an inspector are so minimal (for example, a protruding nail in the siding) that removing the inspection contingency and proceeding toward closing is the right answer. If there are items that need to be addressed by the seller then negotiations may open back up.   There are times that an inspection finds major defects with a home and it is the best solution for the buyer to terminate the contract.

A Realtor’s experience and expertise is the key element to negotiating. Sometimes the repairs may require a request for seller to decrease the purchase price, seller to credit the buyer for repairs at closing, seller to repair said items or…or…or….there are a number of scenarios that can play out during the Inspection Response. Per the NWMLS a Form 35R (Inspection Response form) is used to address the inspection with the Seller.  Remember, everything must be agreed upon and signed by both sides of the transaction.

I called the builder’s listing agent and requested a Builder Meeting. Once we met with the builder and he had his team inspect the crawlspace it was determined that the builder would fix the issue immediately.   Based upon the builder’s explanation and agreement to repair the issue fully and with warranty the buyer decided to proceed toward closing. In simple terms, the builder will pump out all water, inspect for damage, replace the crawlspace with a new vapor barrier and allow buyer to re-inspect repairs. If water is to be found in the crawlspace at any time over the next 2 years the builder will install a sump pump with warranty to buyer’s satisfaction and inspection. 

This is called a win-win situation. The buyer is satisfied that their interest is protected and the builder is providing a solid and sound home at closing.