Radon mitigation systems?

Question

My husband and I are purchasing our first home and we are in love with it! However, the radon testing results came back and it is at 30. The sellers are putting in a mitigation system in on Monday.

My question is, when we decide to resell someday, will this system be a deterrent to future buyers?

Answer 1

The potential for radon gas is the deterrent.

If the system works I would expect that would make your property more desirable than a home without the system.

The main concern that I would have is that you do not pay too much for the home.

I recommend that you hire an appraiser who is a Member of The Appraisal Institute (MAI designation) to protect your interests so that you do not pay too much, and give you a second opinion about the fair market value of the home. Do not rely on the lender's appraiser.

The lender's appraiser is just trying to accomodate the agents involved so that they will continue to send business to the lender and also provide the documentation that they need to sell the loan to an investor and make fees for the bank.

Also I recommend that you hire an attorney who specializes in real estate law to write the language that you need to make the contract contingent on the appraised fair market value as determined by your appraiser, not the lender's appraiser. You also want olanguage that clearly spells out the duty of the seller to direct the escrow company to return you deposit if you cancel the contract. This contingency should be removable only by you, not the passage of time.

The contingnecyperiod should be at least 21 days to give your appraiser enough time to get out to the property and inspect it and write a good report for you.

When the appraised value comes back at a value less than what you offered for the property at that point give the seller two choices:

1. Agree to reduce the contract price to the fair market value as determined by your appraiser or:

2. Agree to cancel the contract and direct the escrow company to return your deposit to you.

I also recommend that your attorney include language making your contract contingent upon your approval of inspections of the roof, structure, foundation, plumbing and electrical systems, termites, water damage, dry rot and mold at the very least.

The language should state that the contingencies are only removable by you in writing and not by the passage of time.

If the inspection reports are unsatisfactory again I recommend that you give the seller two choices.

1. Make the reapirs or provide you with the necessary financial compensation for you to have your contractor make the reapirs.. or..

2. Agree to cancel the contract and direct the escrow company to return your deposit to you.

Answer 2

It may be a small deterrent. But people generally realize that in some areas of the US, radon is present in most homes.

Answer 3

Potential buyers would rather know there is a system in place already. My father in law had one put in his house and now that it is on the market his realtor is even putting the mitigation system in the MLS listing as a selling point.