Many older homes are 40-50 years old and have systems that
may need to be replaced. Newer homes also need independent inspections to
ensure that the major systems have been installed correctly and are
operational. Getting an independent home inspection is one of the most
important things you can do today when purchasing a home. In recent years many
sellers would not even entertain a home inspection and many buyers waived one
for fear of losing a house. That’s totally changed now that house prices are
declining and it’s becoming a buyers’ market. Not doing a home inspection can
cost you money, especially if you uncover structural damage after the sale.
What Home Inspections Accomplish - Myths and Reality Myths
- A home inspection will identify every flaw of a house, nonsense)
- A home inspection that finds defects is a deal breaker, (depends on the defect) and
- All home inspectors are the same. (we wish it was true)
Reality
- Inspection can detect significant problems with the major systems that include structural, roofing, electric, plumbing, water and heating, air conditioning and cooling (HVAC),
- Inspections can help determine the operating condition of those major systems, and
- Inspections give you an idea of the remaining life of a home’s roofing, dishwasher, heating, air conditioning system, water heater, stove, oven, driveway, windows and what it will cost to replace them.
Residential Real Estate Contracts and Home Inspections Many
real estate contracts give the buyer the opportunity to walk away from the sale
if the home inspection is not to their satisfaction. Most often though, the
buyer often asks for a reduction in price to compensate them for replacing or
fixing significant problems such as a roof that needs to be replaced or a
collection of smaller problems. A buyer could also insist that the repairs be
made before or shortly after the sale and include the requirement in the
contract. The seller can either agree with the buyer's demands or make a
counter proposal. Most often a seller’s Realtor will advise the seller to make
the repairs or to lower the price. Note, some very astute sellers and Realtors
are having their house listings inspected by a home inspector prior to putting
them on the market. The idea here is to fix any major problems so that a
prospective buyer who is interested in the home is not discouraged from
purchasing the home. Often but not always, sellers share the home inspection
report with the buyers. You should recognize two things here. First, this is
not an independent home inspection. The home inspection company is being paid
by the sellers and the seller is the inspector's client not you. Our advice:
caveat emptor (let the buyer beware) in such situations. You can always insist
on your own independent home inspection and gain peace of mind. Rules for Home
Inspections We understand that you may be hesitant to spend money for an
inspection of a home you may not wish to buy. Believe me, the extra $300 to
$500 you spend on that home inspection might save you thousands of dollars in
expenses and avert a terrible home purchase altogether. Some homes and
neighborhoods are just charming. We can quickly fall in love with a home and
overlook fatal flaws that a trained home inspector will detect. Also, we can’t
emphasize enough how important a home inspection is and not to make the mistake
of relying on an appraisal. The US Department of Housing and Urban Development
(HUD) now requires that that all new buyers who are using FHA/HUD funding for
finance must sign a HUD form that emphasizes the importance of an independent
home inspection. How to approach Home Inspections When dealing with home inspections,
we recommend the following so that you will end up with a truly independent
home inspection:
- Never chose a home inspector recommended by your Realtor or the Seller’s Realtor,
- Always pay for the Home Inspector with your own funds,
- Always accompany the home inspector during the inspection,
- Always conduct the inspection during the day and when all electricity, water, and home systems are working, and
- Don’t rush the home inspection.
It should be obvious that there’s a conflict of interest in
play if you use your Realtor’s home inspector. The Realtor wants the sale to go
through and will often play down problems uncovered. The home inspector may
also downplay problems and not be objective, because they want future business
from the Realtor. Make sure that the inspector knows that you are his client.
This is very easy to establish. The rule is he/she that pays is the client.
Tell them that you will be paying for the inspection. What’s in a Home
Inspection? In theory, an inspection consists of a thorough visual examination
of a home’s structural components including the foundation, superstructure, and
roofing systems, where accessible. The heating and cooling equipment should be
turned on along with sinks, shower, and bathtub fixtures. Your inspector should
also test accessible electrical outlets and fixtures, and testing doors and
windows. A home inspection should give the buyer an impartial, physical
evaluation of the overall condition of the home and identifies items that need
to be repaired or replaced and when. Remember nothing is sacred in a home
inspection. For example, if you have your heart set on refinishing the hardwood
floors now covered by those wall to wall carpets, take up some of the carpet
ands make sure that the wood floors are in good shape. Some owners may have
covered the hardwood floors because of pet stains from urine etc. Better to
uncover these things now when you can do something about them. It will be too
late after the sale. A Closer look at Home Inspectors If you live in New
Jersey, North Carolina, Oregon, South Carolina, Texas, and Wisconsin you will
have some assurance that the home inspectors there are regulated and licensed
just as Real estate professionals are. Similar legislation is in the works in
Massachusetts, Georgia, Ohio, and possibly in other States. Other states
require registration or certification, though registration often means just an
application and fee. The rest of us will have to have a more difficult time
finding a good home inspector. Here’s the reason. In most states, there are no
minimal educational or experience requirements to be a home inspector. We
suggest you look at the following websites to find certified and if possible
licensed home inspectors:
- The American Society of Home Inspectors (ASHI)
- The National Association of Home Inspectors
- California Real Estate Inspection Association
Don’t be surprised either if the inspector is an independent
contractor. According to the ASHI study about 66 percent of the inspectors are.
Also the average inspector is 49 years old and has about 7 years of experience.
Finally about 78 percent of the inspectors conduct business as full time
inspectors.
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