Home Buying 101: The Importance of the Home Inspection
What Does a Home Inspector Do?
In short, an inspector checks the safety and functionality of
your potential home. Inspectors focus primarily on the
structural and mechanical aspects of the home.
Get a home inspection as soon as possible after the sellers
accept your offer. Make the contract contingent upon the home
inspection. That way, if the inspection uncovers a major flaw
that you're unwilling to accept, you have a legal way out of the
contract.
Don't confuse the home inspection with the home appraisal. The
home appraisal protects the lender's financial interests. The
home inspection protects you, the buyer. The appraisal is the
bank's way of determining whether or not the house is worth the
price you've agreed to pay. The inspection is your way of
identifying structural or mechanical problems with the house.
How to find a home inspector:
* Ask a friend or coworker who has recently bought a home in the
area.
* Ask your agent if he or she can recommend a qualified
inspector.
* Visit the American Society of Home Inspectors website:
www.ashi.org.
* Visit the National Association of Home Inspectors website:
www.nahi.org.
Is a Home Inspection Worth the Price? Consider this. Home
inspections usually run between $200 and $400. Weigh that small
cost against the comfort of moving into a known situation, and
the answer is obvious ... get a home inspection!
The List
Your home inspector will go through your home with a
fine-toothed comb. So be present for the inspection - you'll
learn a lot. Afterward, the inspector will make a list of
discrepancies. Some items won't be a big deal to you, but it's
still the inspector's job to point them out. But other items
will be more serious, and these are the items you should discuss
with your agent.
Who's Fixing What? When you review the inspector's list
with your agent, you'll have to decide which items (if any) you
want the sellers to repair. Like nearly everything else in the
home-buying process, the fix-it list is negotiable. When you
submit your list of requested repairs to the sellers, you face
one of several outcomes:
1. The seller will agree to fix all of the items.
2. The seller will agree to fix some of the items.
3. The seller won't agree to fix any of the items.
4. The seller will reduce the price in lieu of certain repairs.
How you proceed in light of the seller's response is up to you
and your agent. A good rule of thumb -- don't ever turn a blind
eye to a major repair issue just because you're excited about
getting in the house. If you're an experienced investor and
you're buying the house specifically to fix it up, that's one
thing. But if you're buying your first home, be conservative and
carefully consider each item on the inspector's list. It will
benefit you in the long run.
Summary
Hire an inspector to review your prospective new home for
potential problems. The peace of mind you'll get is well worth
the cost you'll pay. Review the inspector's list with your agent
and carefully consider each item on the list. Consider your
ability (or inability) to make the repairs yourself, vice having
the sellers repair them.