If you read a termite or pest report, you may bump into the phrase “cellulose debris“. What does it mean?

Usually cellulose debris means that there are scraps of wood, sawdust, or bits of wood (possibly paper). It’s any kind of material made of wood.   Most often, cellulose debris is mentioned as found in the crawl space of a home.  Sometimes it’s infected (meaning there is a wood destroying organism such as termites present), other times it’s simply an invitation for “wood borers” such as termites to come and feast on the wood members that are laid out as a buffet for them.

In our Silicon Valley area, pest reports are normally “separated” into Section 1 and Section 2 findings.  If the cellulose debris is called out as Section 1, that means that there’s an infestation of termites or other wood-destroying organisms present.  If it’s Section 2, that means that it’s not yet infected but is an invitation to trouble.

Pest control operators will suggest that cellulose debris be removed so that termites and other wood eating oranisms aren’t attracted to the crawl space or other areas of the home.  It’s a nuisance to get rid of it, but much better to prevent a problem upfront than to wait and have to solve it later.

In addition to the financial part of your offer and your contingencies and timeframes, there are other terms that may help you to be more competitive when writing an offer in a multiple offer bidding situation in Silicon Valley.

What other terms could matter, beyond price and contingencies? Lots – they will matter to the seller and they’ll matter to you. 

As Is Offers

Sellers always want to sell “As Is” if possible. They don’t want to have to do repairs, to spend the time or the money to fix what may not be perfect.  This is an extremely important area to research, weigh, and understand prior to drafing your real estate purchase agreement, particularly if you are not the only one trying to buy that real estate.  When it’s a seller’s marker (and with multiple offers, it IS a seller’s market), the seller can request and will usually be able to sell As Is.

Buyers always want every imaginable repair done, if at all possible.  Buyers don’t want to have to do termite, roof, electrical or other work on the home. They want a “red ribbon deal” where the home’s been or will be in very good to excellent shape.  They want a section one clearance from the termite & pest company.  They want a leak free roof warranty. When it’s a buyer’s market, and you’re the only one attempting to buy the house or condo, you can usually request and get the seller to do all the basic repairs.

The important point is to understand which of these two markets you’re dealing with – buyer’s or seller’s - if it’s a seller’s market and you’re behaving as though it’s a buyer’s market, you will hurt your odds of getting the property if you request repairs or if your contract provides a seller’s warantee.
(more…)