Smart Sellers Series: There is an invisible gas that can impact your deal

It’s not science fiction. There is an invisible gas that is in many homes and if discovered during your home inspection, it can cause issues with your contract – or even cause it to fall through.

The mystery gas is radon.

On a serious note…radon should not be taken lightly. There are health risks associated with radon including cancer. You can read more about radon and the associated health risks at www.epa.gov/radon.

If you’re a seller and you haven’t had your home tested for radon, it’s important to understand the process. A buyer will most likely include a radon inspection when he/she writes an offer. At the time of the home inspection, radon testing equipment will be placed in your home, normally on the lowest level of the house. The test runs for 48 hours and will be picked up afterward by the home inspector. Test results are usually available within a day or two.

The buyer determines their threshold for acceptable radon levels but many buyers default to the EPA recommended level of 4 picocuries per liter (or 4 pCi/L). If the levels are higher than the threshold, the buyers have a choice. They can either:

A)     get out of the contract or they can

B)      ask you to correct the issue by hiring a licensed remediation contractor to remediate and retest. New test results must be below level indicated on the Radon Inspection Addendum.

In Howard County, the buyers select option A or B when they write their offer so as a seller, you know your obligations when you accept the offer.

But here’s the catch. We’ve seen buyers – especially those buyers who are either first time homebuyers or are relocating from another area – who want out of the contract when radon results are above 4 pCi/L.

There are other, legal ways out of the contract so how can a seller mitigate this risk?

It’s important that you know ahead of time about your options and how they could impact your sale. You could have your radon tested before listing, remediate if necessary and retest. Disclosure is key here so providing the details to potential buyers is important.  Or you could let buyers go through this process once you are under contract…with the understanding that it could be an obstacle to closing later on.

Radon is serious and buyers have a right to decide how they want to handle the issue. It’s best if you understand the impact of radon prior to listing your home. Call us to learn more.

- Wendy 

See www.epa.gov/radon for more information.

                                                              Radon Mitigation System

                                                             Radon Mitigation System