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case study

An active leak and a failed sewer line, while my buyer was out of state

A parent relocating to Portland with their child was buying a home built in the late 1800s, remote for the entire process. During the inspection, we discovered an active leak inside the walls, and the sewer line failed. I managed the response on site and negotiated full remediation, a seller-paid sewer replacement and an HVAC replacement. We closed about a week and a half late, on the house they wanted.

By Kerrie Doerr, Portland real estate broker, eXp Realty. Shared with my client's permission. Identifying details have been changed or removed

From: Texas · Budget: approximately $550,000 · Shopping timeline: 3 months · Outcome: seller-paid leak remediation, sewer replacement and HVAC replacement; closed about a week and a half late.

What was my buyer trying to do?

My client was relocating from out of state with their child and wanted a home with character, in the location they'd chosen. They found it: a house built in the late 1800s. They wrote an offer contingent on the sale of the home they were leaving, and it was accepted. They were remote for the entire process, from inspection through closing.

What happened at the inspection?

I was at the inspection; my client was not. The inspector turned on the bathtub to check its drainage, and then we heard it: an active leak, water running through the walls. We went downstairs and found water coming from the upstairs bathtub into a finished basement, soaking the carpet.

We stopped the water, and I called the listing agent right away to tell them the property had an active leak.

How was the leak handled?

The seller repaired it, and the repair was more than a plumbing fix. It included flood-cutting the drywall, removing the carpet, repairing the plumbing, drying everything out, replacing the drywall, refinishing, repainting, and then rechecking for mold. The mold recheck came back clear.

What about the sewer?

The same inspection found that the sewer line had failed. On a house this age, that's a big, complicated repair, and after watching water pour into the basement, my client didn't want to take on any more risk with this property.

We used the active-leak situation as leverage, and the seller agreed to a complete sewer repair: replacing the line from the house, where the original sewer was cast iron, all the way to the city main, including the section under the sidewalk.

The sewer contractor found the line had cracked. I tell clients that Portland's wet winters and dry summers are hard on old sewer lines, and that a sewer scope is worth it on almost every older home.

Was there anything else?

Yes. The inspection also turned up an HVAC issue, a separate finding from the water problems, and we negotiated an HVAC replacement too.

How did it turn out?

We closed about a week and a half later than originally planned, because the leak repair and drying took time. My client got the house they wanted, in the location they wanted, with the character they wanted, plus a new sewer line to the city main, an HVAC replacement and a remediated, mold-checked basement. They started their new life here with their child.

What would I tell another out-of-state buyer?

  • Your agent should be at the inspection. If something goes wrong, you need someone in the room who can act that day.
  • Get a sewer scope on any older Portland home. It costs a few hundred dollars. A failed line can cost thousands.
  • One problem can create leverage for another. A seller who has just discovered an active leak is often more willing to address the next issue.
  • Repairs take time. Build a little slack into your moving plans in case closing slips.

More on how I work with buyers who can't be here: buying a home in Portland while you're relocating. And if you're weighing older homes, start with my inner eastside guide.

Selling first and buying in person instead? Read this family's story.

A different client, in her own words

Mary P.

buyer

"Kerrie felt like a true partner in the process, keeping things seamless while I was out of town during critical inspections, she was a thorough and efficient communicator and helped us find the perfect home on budget in a very competitive market."
Posted on Google

5 stars from 18 Google reviews

Frequently asked questions

Can I skip attending the inspection if I'm out of state?
Yes. Many of my clients do. I attend, and the inspector's report and my notes come to you the same day.
Who pays when a leak is found during inspection?
It's negotiated. In this case the seller paid for the remediation and the sewer replacement, but every transaction is different.
What is a sewer scope?
A camera inspection of the sewer line from the house to the street. On older Portland homes, I recommend one almost every time.
Did the contingent offer hurt?
Not in this case; the offer was accepted. On the most competitive homes, a contingency can weaken an offer, so we decide house by house.

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Buying from out of state? Let's talk through your situation.

Book a free 30-minute call. Bring your timeline, your budget and every question you have. Even if you haven't decided on Portland yet, it's not too early.

Prefer email? kerrie@kdrealestatepdx.com