Termite damage and high radon readings (Boston: mortgage, loan, buying a home)

[Sandysgirl]

My son is considering buying a home that has significant termite damage and also high in radon, failing both tests. He approached the buyers to ask if they would repair both and he was told it was not their problem. Is this the case in Mass? Also, I've heard that radon gas can cause lung cancer and birth defects. Has anyone heard this? Will all these problems prevent a bank from giving a mortgage and would you advise your son to back out? Thanks

[scarletfire]

The sellers seem unreasonable, and your son likely has an inspection clause that will allow him to back out of the deal and get his deposit back. He'd probably be better off walking away.

However, if he doesn't want to do so, here's a bit of info:

Re: radon, it is true that this needs to be resolved for health reasons. Radon remediation systems usually cost around $1000-1500 so that's easier to remedy.

Re: termites, it would be prudent to have a pest inspector determine exactly the extent of termite damage. If I were him I'd either back out or insist that this be done and the seller take care of fixing all the wood damage and paying to prevent future termite damage.

Another issue to consider is that even if the seller pays, there are an awful lot of chemicals used to kill and keep termites at bay. A lot of people are fine with that. Personally that would make me a little nervous.

If your son does back out, the seller is legally obligated to alert any future buyers that he has high radon and termite damage. Now that he knows about these issues he can't stay mum. And this will certainly turn off many buyers. I'd say it's a good idea to remind him of this fact and hold out to get the issues remedied. Otherwise, there are plenty of other houses on the market.

[clevedark]

Every other house in MA has a high radon reading--it's easily fixed with an exhaust system. In our house it cost $1000. We split it with the seller which was a stupidly tough negotiation--some people are so cheap it's borders on the pathological.

We've never dealt with termites, so can't speak to that.

I don't know if high, unremediated radon and extensive termite damage would cause a bank to stop a loan. Two years ago I'd say no, but today, maybe???

[scarletfire]

Not every house in MA has a high radon reading. There are quite a few but some don't have this issue, and it seems ridiculous that the seller would think that's the buyer's responsibility to pick up the tab for this.

[shiver]

A high radon reading isn't uncommon in Boston. But a mitigation system costs between $1000-$1500 and will reduce the radon readings. The EPA radon tolerance reading is a level 4.0 or lower. If the reading came in at say 4.2, it probably isn't that serious. But I'm surprised that the sellers won't pay for it because now that they know about the high reading, they are required to disclose this information upfront to any other future buyers. They should at least offer to split the cost.

Radon won't be an issue with the mortgage, but termite damage may very well be. If the appraiser notes signs of termite damage in the appraisal, it could preclude the bank from giving a mortgage. And, if he's doing an FHA mortgage, pest inspections are mandatory and the results reported to the lender. I don't know much about termites so for me it would be worth talking to a good termite inspector/exterminator.

The sellers do have a bad attitude. It is their problem because they'll have a hard time selling their house because these same issues will keep coming up. Radon is an easy fix, but I'd do some more investigating into the termite problem. Whether he should run, would depend on how bad the problem is.