BUYERS: How Can You Protect Yourself from Buying a Money Pit House?
For most people, a home is the largest purchase they will ever make. Since buyer’s a usually wrapped up in the excitement of a new home, it’s critical that home buyer’s have an unbiased third party give the home a second look. For most buyers, this means hiring a professional home inspector.
So, when does the home inspection come into the plan?
Inspections are highly recommended but they are not mandatory. (You will likely see the flyer titled “FOR YOUR PROTECTION GET A HOME INSPECTION“ more than once; at purchase offer and closing.). Most Purchase Agreements have the option to be “Contingent on Inspection” which must be done within a set time frame of final acceptance of the Purchase Agreement (the offer). PLEASE REVIEW CAREFULLY AND UNDERSTAND THE TIMELINE ON YOUR HOME PURCHASE CONTRACT.
The inspection contingency reads.
All inspection(s), test(s), and resulting negotiations, if any, shall be done within __(usually 5-10 days)__ Calendar Days of Final Acceptance Date of this Purchase Agreement (“Inspection Period”). Buyer may cancel this Purchase Agreement based on the inspection(s) or test result(s) by providing written notice to Seller, or licensee representing or assisting Seller, of Buyer’s intent to cancel no later than the end of the Inspection Period. If Buyer cancels this Purchase Agreement, Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation and directing all earnest money paid here to be refunded to Buyer. If Buyer does not cancel this Purchase Agreement before the end of the Inspection Period, then this Contingency shall be deemed removed and this Purchase Agreement shall be in full force and effect.
The inspection is a contingency in your purchase agreement allows for negotiations to reopen if unexpected serious issues arise.
HOME INSPECTORS CAN’T FIND EVERYTHING BUT THEY CAN HELP POINT OUT THE MOST COSTLY POTENTIAL PROBLEMS.
A home inspection is likely going to be scary and a little disheartening.This is normal and we will roll with the punches and get through it together.
Prior to the inspection, the buyer thinks this is the perfect place to call home. The inspector, however, is able to wreck their world in a matter of hours by informing them of all the imperfections and “could go wrongs” lurking behind the walls of the home because it’s their job to pick the home apart. A real estate agent can’t give much advice on items needing repair, a seller never thinks the repair is a big deal, and the buyer just got kicked in the gut.
What is the home inspection process?
Usually, the home buyer chooses a home inspector and the inspector requests to schedule the time with the homeowner. Professional inspections take from 2-4 hours depending on the size of the home and depth of inspection you choose to have done. Different inspectors provide different services but they generally run under $600 plus any optional add-on services you select. Interviewing them will allow you to find out their qualifications, certifications (like ASHI or NIBI), services, prices and availability.You should plan to meet the inspector for the whole time or at least at the end of the inspection for approximately an hour to go over his/her findings and pay for the inspection. You will also receive a copy of the inspection report (and estimates if you go that route) so if you can’t get arrangements made to meet the inspector you will have that report to reference.You will want to interview to find an inspector that best fits your needs. You can find good info on interviewing inspectors at: http://portal.hud.gov/hudportal/HUD?src=/program_o…
Make sure the inspector also understand home inspections from a lender/appraiser standpoint:
Want a list of inspectors my past buyers have been happy with? Contact me!
Wondering if your friend or family member can do the inspection? They can if that is satisfactory to you but ask yourself if they will be unbiased…
I DO NOT ENDORSE ANY SPECIFIC INSPECTION COMPANY HOWEVER I CAN GIVE YOU THE NAMES AND NUMBERS THAT PAST CLIENTS HAVE USED AND FOUND ACCEPTABLE. Contact me.
Here is a video from Pillar to Post about Types of Inspection
OTHER HOME BUYER RESOURCES:
- What is the home buying process?
- Hidden Future Costs of Home Ownership
- Most Common Mistakes Home Buyer’s Make
Home inspections Video:
Remember: A home inspection is not a code inspection… but inspectors will look for safety issues.