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wrote:
I read the replies but I am still not compelled. HUD performed a
termite inspection 2 months ago and I have a copy of the report.
SERIOUS problems would be covered under the 10 year builders
warranty.
The average inspection fee in the area is $200~$300 which is money I
could use to actually fix problems. Because there are no appliances
or
light fixtures, there is a limited amount of testing that can be
performed. Finally, I still must incur the cost/hassle of having
utilities activated, getting the test performed, and then having them
disconnected within 48 hours. Basically, HUD's rule as explained to
me
is that utilities can be turned on to perform the inspection but I
incur any financial burden of doing so. Finally, someone pointed out
the fine print about disclaimers. Any home inspector has a clause
that
limits his liability to the amount paid for the home inspection and
no
more. Bottom line: I still don't see the benefit to me except an
extra
pair of eyes to see what I didn't see... and I am a VERY critical
detail oriented person.

Your offer probably includes standard phrasing that enables you to get
your deposit back if the inspection turns up "major structural damage."

Would the builders' warranty cover any major structural damage? What if
that damage was caused by the previous owner and not by the way it was
constructed? Could the builder wiggle out on his liability in that
case?

For example, when you buy a car it comes with a warranty. But if you
don't take care of the car, and religiously abide by the manufacturers'
routine maintenance schedule, the manufacturer can certainly make a
claim that he is not liable should something go wrong with that car.
It's not that the car was poorly constructed - but rather, it was
poorly maintained. Right?

So that would be my concern, since this is a HUD house I'm guessing it
has been neglected by the previous owners, and that neglect could void
any builders' warranty. For example, if the house was long empty, pipes
could've frozen and you may not realize the full extent of the damage
until you turn the water and the appliances back on. That wouldn't be
the builders' fault, would it?

Or, as another example, our builder graded our property, installed a
sump pump and french drain and gave us a warranty that the basement
would never flood. But if I ever turned off that sump pump, or mucked
with the grading, and the basement flooded, you can bet that warranty
would mean absolutely nothing.

Or another property I looked at, which had major structural damage to
the garage - not all that obvious to the untrained eye - the cause: a
tree root was growing into the foundation. No builder warranty would've
covered that - it was the responsibility of the owner to cut down the
tree before it became a problem.

Or my experience with termite contracts: after being in this house over
a year, and regularly getting termite reports that said "all visible
termite stations okay," we then discovered that almost half of those
stations were missing. We didn't know (the previous owner had covered
them up while landscaping). According to the warranty, our termite
company is only responsible for checking those that are visible. If a
property owner covers them up or removes them, well, it is probable
should termites ever damage the property, the contract company might be
able to get out of its liability. I would definetly recommend meeting
with the termite company in person yourself; walk around the property
with them, and have them point out where the stations are, count them
all to make sure they are there, etc.

Of course you are going into this with eyes wide open, you see the
obvious things you'll need to fix, but if it were me, I'd still pay the
$200-300 just to ensure there are no huge Gotchas that you'd be on the
stick for. It's a huge investment. Don't be penny wise and pound
foolish.

jen