Among older homes, especially those in the hills, we always recommend getting a structural engineering inspection.

There was a recent foreclosed home that seemed too good to be true for the price and the views (even had all kinds of wonderful upgrades). But it turned out to be seriously in need of new foundation. The engineering and soil reports practically condemned the house due to instability of the terrain and the condition of the foundation.

So this would be the first area of concern.

In addition to the regular home, pest, roof and chimney inspections, it's also a good idea to have the sewer lateral tested.

The best source for this question is a home inspector in the area where you are planning on buying. Check out http://www.inspectornow.com or http://www.inspectorseek.com for certified home inspectors.

The entire area is tectocnically instable: faults, landslides , landfills, phreatic waters; houses are old and they should be inspected structurally from time to time by every interested party : owner, seller & buyer. Due to age, they should also be checked for pest infestation & dry wood.

Homes in the Berkeley Hills and Oakland Hills are close to the Hayward fault, and therefore the condition of the foundation is important as the previous agent suggested. There is a rebate of up to 1/3 of the transfer tax for either buyer or seller who does these repairs with permit.
I do think that as a savvy buyer you want to know how long the property has been on the market, which tells you about the price for that house. Many if not most homes listed by brokers have available structural reports available for you to look at. You might find a house has been on the market for 30+ days, and as you look at the reports, you may find structural repairs are needed. All these issues are negotiable. Ask alot of questions, but be thoughtful to ask them in a one to one discussion between you and the seller's agent or an agent of your choosing. It is difficult to ask these questions at an Open House, and the seller's agent may not want to discuss these details there. all the best.

Some of the older Berkeley houses are in need of seismic retrofitting. Owners that complete voluntary retrofit work with in one year of the sale date can claim a dollar-for-dollar rebate of their property transfer tax up to one-half percent of the structures sales price.

You need a good agent to help you understand the problems common to houses in various areas of Oakland and Berkeley. I have been and agent for 29 years in this area. Please give me a call at 510-604-5728.