Recently the City of San Rafael put all in-person resale inspections on hold. In part because they were unable to keep up with the sales volume (and of course COVID) they decided to only provide a resale report that lists the permit history of homes. Far less labor intensive, they have cut the resale inspection price tag in half. Previously at $290 it was a considerable expense for sellers. You can be sure that when in-person in resale inspections resume the cost will go back up.
For sellers who might not have recent permits on file for work they’ve done this could be an advantage. Sellers still need to disclose any work that was done without permits, however that doesn’t necessarily mean a buyer will ask for the sellers to take out permits. Buyers might but they are less likely to do so if they know about the unpermitted work prior to writing their offer. The hope is that they will take it into consideration with their offer price.
While it’s always advisable to have permits for work, the reality is that a lot of homeowners in Marin get work done without permits. When it comes time to sell in a place like San Rafael the City will fine sellers three times the cost of the permit. Not having in person resale inspections will inevitably make the sales process less painful for the sellers and will impact the bottom line of the building department which I have seen make a lot of money on fines and permits over the years. Buyers need to beware too, if they don’t ask for permits on work that was completed they should be prepared to get the permits themselves if they plan on reselling.
Meanwhile in 2021 the Las Gallinas Valley Sanitary District (LGVSD) began its own resale inspection program. Like the City of San Rafael, LGVSD has had trouble keeping up with the volume of sales. They are supposed to be able to turn around their inspections within 10 business days for a fee of $250 and they’ve mostly met that deadline. For an extra $250, (that’s $500 total) you are supposed to be able to get your inspection results within 5 business days. Plus you need to pay for a video of the line so this process is not inexpensive. I paid the expedited fee once in a transaction this year and it stretched into a sixth day which almost delayed our closing. Had we ordered the 10 day review we definitely would have been late.
The issue isn’t just the time it takes to turn around the inspection, it’s also the time it takes to get a video of the line. I use my Terra Linda neighbor Charlie Murphy for the videos, and he’s so busy right now he’s not taking new customers! With the holidays it can take even longer to get someone to video a line. If you have to wait two weeks to get a video, then another two weeks for the Sanitation District to issue their report on the video, it can be up to a month before a buyer knows the official status of the sewer line.
Right now the only time there are mandatory changes to a sewer line are if there are illegal hookups, like a downspout from the roof directed into the sewer. They will make you take that out. Other than that lines are either (1) fine (2) should be minimally maintained or (3) should be repaired or replaced. It’s that third option that can get a little sticky with buyers. Even though those repairs or replacements are not mandated, buyers need to take into account the cost. It’s best if they know about the recommendations prior to making offers, which means now the first thing I do when I sign up a seller is call Charlie Murphy to get on his schedule. I'm just fortunate to be one of his regular clients.