I just re-read the op – if this thing closed escrow in 2005 then it must be in better condition than I was thinking
I would assume that at the very least a termite certification was obtained and I would hope that for $485K the house didn’t have any major structural issues or seriously outdated electrical / plumbing systems (although these could be bad assumptions given the May ’05 sale date)
Bugs: any thoughts on ‘hiding’ major issues from a loan underwriter? for example: knob and tube wiring system (http://www.oldhouseweb.com/stories/Detailed/14214.shtml), glass screw-in fuses in breaker box, cracked stem walls in foundation, shifted or tilted foundation, etc – obviously these issues detract from the value of the property but a lender may not be aware of them
An honest seller would disclose any known issues and a savvy buyer would insist on inspections – an underwriter would look at these documents and make a decision – but a dishonest seller and a naive buyer is a different story
