What every buyer should know about Home Inspections

 

HOME INSPECTION

 

When should you get a Home Inspection?

After your offer just got accepted one of the first things you should order is a Home Inspection The home inspection will need to be order and completed and any repairs negotiated during the option period as indicated in the Accepted offer contract. The typical time is typically 5 days but can be negotiated between the buyer and seller anywhere between 3-10 days.

 

What is a Home Inspection?

The home buyer has the choice of selecting an objective 3^rd party licensed home inspector to perform the inspection.   Think of the inspector like a doctor whose job is to diagnose the current the condition of a home, and safety of the home before you finalize the sale. This is your opportunity during your option period to have a licensed home inspector diagnose the health of a home's mechanical, structural, plumbing, electrical, roof and other components. The inspector will check the following:

• ·      Appliances
• ·      Attic, Insulation, Ventilation
• ·      Basements, Foundation, Crawlspace, and the homes’ structure.
• ·      Cooling System
• ·      Doors, Windows, Interior
• ·      Electrical
• ·      Exterior of home such as Siding Window, Decks, flashing, walkways, driveways, patios, and drainage
• ·      Fireplace
• ·      Heating System
• ·      Plumbing
• ·      Pool
• ·      Roof

 

If anything is questionable in the inspection process – like the age of the roof, the state of the HVAC system, or just about anything else – you as a buyer have the option to discuss and negotiate any potential issues or repairs with the seller before the transaction is final. Your real estate agent is a key expert to help you through this part of the process.

On occasions, one or more areas are obstructed, and the inspector cannot safely get to these areas to inspect them. Some things include severely steep roof, structural integrity is unsafe, or the occupant of the home has their belongings obstructing access to certain areas.  If this happens the inspector will explain (and possibly need to make a second trip to the property for an additional charge to finish the inspection once the condition is resolved. 

 

Does a Home Inspection Determine the Home’s value?

A home inspection is not meant to determine a home’s fair market value, this is what appraisals are for.

 

Can a house fail a home inspection?

A home inspection is not a pass or fail a report, but rather describe the properties conditions and defects.

 

How much does a Home Inspection cost?

Costs vary but typically range between $300 and $600 or more and are almost always paid for by the buyer. I know this sounds like a lot of money, but this one report can save you thousands of dollars in future repairs.  Isn’t this worth the peace of mind.

 

How long does it take to complete the inspection?

 On average, a single-family home inspection usually takes 2-4 hours to complete, though this is heavily dependent on the of the size and condition of the home. 

 

When does the buyer get the Inspection Report?

After the inspection process, the inspector will send the client an inspection report (often within 24-48 hours) that covers their findings, complete with pictures, analysis, and recommendations.

 

What is not inspected during a home inspection

• Asbestos
• Indoor air quality
• Leadbased paint 
• Pest damage or termite issues
• Radon gas
• Swimming pools
• Toxic mold
• Venting equipment with household appliances

Why do homebuyers need a home inspection?

Since the purchase of a home is the largest single investment, a homebuyer will make they should always be fully informed so they can make a homebuying decision with confidence. 

Do the homebuyers have to be there?

No, as a matter of fact most inspectors will need several hours without interruption to go through the home and document the condition.  They will have the opportunity at the end of the appointment to review the inspectors’ findings and discuss them in detail with the inspector.  If you are unable to attend the inspection due to a scheduling conflict most inspectors will allow communication at a latter time and discuss the report with you and help answer your questions.

 

What is the next course of action if the inspection report reveals problems?

It is important to note that no house is perfect. Even a Brand New Construction home will have deficient items called out.   Every home inspection will identify issues with the property and the inspector will communicate the severity of the issues found. The goal of the inspection is to simply educate the homebuyer so they can make the best decision, and understand any risk involved with the homes condition.

 

Should you ever skip the inspection?

The inspection is a crucial step in the home buying process that if missed, could have some serious and expensive repercussions in the future.  Even if a home appears to be perfect condition, you never know what serious issues could be lurking under the surface.

What happens after the Buyer reviews the home inspection report

This is when the Realtor works their magic. The Real Estate Agent will discuss with you what items should be addressed in a Repair request.  Remember, no home will be perfect, and buyers should make sure they set the proper expectations on what items they request for the Seller to repair.  So, what is a reasonable repair request? Typically, a buyer should consider requesting the seller correct any deficiency that would be a health or safety concern.  Some of these things would include Damage to the roof, HVAC problems, Electrical or Fire hazards, Plumbing issues that could lead to broken pipes, leaks, or flooding, Foundation or Structural Issues which would cause shifting, cracking, mold or water damage, asbestos or lead paint, elevated radon levels, building code violations, or movement and Pest infestations.

 

What repair request are considered Unreasonable

Making unreasonable repair requests can hurt your chances as a buyer getting through a successful negotiation. It is recommend staying away request such as Cosmetic issues (such as paint touch-ups, outdated appliances or home décor, landscaping, oil spots on the garage floor or driveway), Minor water leaks like a leaky toilet, minor electrical repairs, small cracks in the basement or driveway, Exterior buildings (such as sheds or detached garages), loose fixtures that can be easily fixed. You don’t want to seem as if you are nit-picking. It’s a good rule of thumb to consider minor repairs under $100 that a buyer can reasonably fix themselves should not be requested,

 

What methods of negotiating repairs?

·      Seller can make the repairs or hire a professional to make the repairs if they have time or money available to do so. 

·      Seller can give a “repair Credit” at closing so the Buyer can hire a contractor they feel comfortable with or make the repairs or themselves. This cannot be done when the repairs would be required by a Lender to be completed prior to closing.  Buyers should always provide a couple of quotes for the repair credit.

·      Sellers can sell the home as-is and lower the sales price equivalent to the suggested repair costs.

·        Sellers can offer a home warranty for some or all of the requested repairs.   

·        Negotiate and/or Barter for items wanted by both parties making it a win/win for both the buyer and sellers. For example: The Buyers may want some of the Seller’s furniture or appliances they are willing to part with in lieu of some of the repairs.  

 

What are some important reminders when negotiating repairs?

 The important thing to remember is everything is negotiable but when you ask for more than you’re willing to give, or more than what the market (other buyers) commands the negotiations are likely to fail. In a tight housing market, there are a lot of buyers that are willing to forego the inspection process and accept the home as-is just to be able to secure the home they want.