Saturday, January 1, 2022 / by Karri Bedor
Addendum B to the Offer to Purchase by Deb Hasselquist
Addendum B to the Offer to Purchase
There are some contingencies when making an offer on a property that, in my opinion, should not be waived. If you are looking at a home that has a well and septic system, there is an addendum that must be completed as part of the offer to purchase. This is called Addendum B.
The reason I would recommend making your offer contingent on the testing of these two systems is that repairs can be very costly and in the case of the well system, if the water is not tested, it may contain dangerous levels of arsenic, nitrates, nitrites or lead. In the addendum, you can ask for the seller to pay to have a reverse osmosis system installed (Estimate $600.00) with a device installed for the kitchen sink. In my opinion, it is important for the buyer to be present with the agent when the specialist is doing the testing so they are able to ask questions and understand exactly what is being done.
A well and pressure system test averages about $125.00 and a Private Onsite Wastewater Treatment (POWT) estimate cost is between $450.00-600.00. Costs may vary, but this is average. Is it worth it? Like I noted above, I’d be very reluctant not to have these tests completed due to both the potential cost to make needed repairs and dangerous levels of poisons in the water.
The specialist will provide you with a complete report of their findings which is used when negotiating. Who will pay for the repairs or needed equipment is often based on the market? If you are in a seller’s market, the seller may not be willing to pay or may ask to split the cost. This is all negotiated with your agent which is another reason I believe it is always wise to have a Buyer’s Agency Agreement. Check out my previous blog if you are not sure what this involves.
The bottom line is, be sure you don’t waive certain contingencies that could end up costing you additional unexpected expenses.. This is why it is important to find an agent you trust and feel comfortable asking questions.
I’d love to connect if you’re ready to buy or sell or would like to know more about the market and what is involved in the buying/selling process.