The AAR Residential Resale Real Estate Purchase Contract gives the Buyer the right to conduct physical, environmental, and other types of inspections, including tests, surveys, and other studies, of the premises at the Buyer's expense to determine the value and condition of the premises. The Buyer must have any inspections, test, surveys, etc., and investigate any material matters that are a concern during the Inspection Period. The Contract also states that the Buyer shall provide you, upon request and at no cost, copies of all reports concerning the premises

Professional Home Inspection: In a home inspection, a qualified inspector takes an in-depth, unbiased look at the premises: (1) to evaluate the physical condition, i.e., structure, construction, and mechanical systems; (2) to identify items that need to be repaired or replaced; and (3) to estimate the remaining useful life of the major systems, equipment, and structure. The inspection gives a detailed report on the condition of the structural components, exterior, roofing, plumbing, electrical, heating, insulation, ventilation, air conditioning, and interiors.

Wood Infestation Report (WIR): As protective measure, lending institutions require that homes be inspected for damage from termites or other wood-destroying insects before closing the sale of the home. A WIR is a document prepared by a licensed pest control company that informs the Buyer and lending institution of the results of the inspection.

WIR's are two-page documents. The first page provides basic information about the inspection such as the address of the property. A section entitled "statement of pest control operator" describes the terms and conditions of the inspection. The second page of the WIR goes into more detail. It pinpoints special areas of concern such as locations of previous treatment, and areas that are inaccessible to inspection. At the bottom of page two, there is a space for the inspector to draw the structure with these details included. Obviously, this is where accuracy matters most because the Buyer and lending institution rely on this specific information when deciding whether or not to go through with a sale.

Prepare your house for this inspection. There are certain things you can do that will save you money and ensure a clean report at the time of the initial inspection. You can check your house for conditions conducive to infestation. These conditions are easy to spot and in most instances simple to correct. Check for the following conditions: wood to earth contract; excessive cellulose debris; faulty grades; excessive moisture.

For more information, contact the Arizona Structural Pest Control Commission (www.sb.state.az.us) at 602-255-3664

The Appraisal Process: If the Buyer is securing a new loan to purchase your home, the Buyer's lender will require an appraisal to determine the fair market value of the property. A licensed appraiser will research nearby houses (within one mile if possible) that have sold in the last six months are similar to yours in size, age, construction and amenities.

The appraiser will make an appointment to see your home and will take about 30 minutes to a hour to look over the property. The appraiser will measure your home, draw a representative floor plan, take photographs inside and out, and review the property's condition, specific improvements and amenities. You can help the appraiser by providing a list of any improvements and remodeling projects completed since you bought your home along with an approximate dollar amount for each improvement. (Some appraisers will appreciate this information while others may not. If you had this information prepared for prospective buyers looking at your home, then providing it to the appraiser will be a snap.) Keep in mind that remodeling projects rarely bring a 100% return on investment, but a list will ensure that the appraiser does not overlook the added features.

The appraiser will provide a typed appraisal report to the Buyer's lender within a few days after visiting your property. You will be notified if the lender requires repairs before they will lend on your home. If specified in the contract, you must repair these problems. The appraiser will have to return to review the required repairs and re-inspection fee will be charged.

NOTE: If the Buyer is applying for an FHA or VA government loan, your property will have to meet certain requirements. Chipped or peeling paint on any structures on the property will have to be scraped and repainted. Missing or damaged shingles or tiles and missing slats or blocks in your fence will have to be replaced. Other improvements also may have to be made before the escrow can close. Your Incredible Real Estate Agent should be able to advise you on the latest FHA/VA requirements.

Your Responsibility Regarding Inspections: You shall make the premises available for all inspections upon reasonable notice by Buyer. You shall have all utilities on, including any propane at the time of inspections.

Inspections and Warranties: Inspections and warranties are covered on pages 5 and 6 of the Residential Resale Real Estate Purchase Contract. Your Incredible Real Estate Agent will be able to answer any specific questions you may have in this area.