So you’ve found your dream home -- it may be in what appears to be perfect “move-in ready” condition or it might have some obvious things that need to be “loved on” a bit. In either case, you should have a home inspection performed by licensed professionals.
CostThe average cost for the basic three (home inspection, termite, and radon) is about $550. This is a necessary expense in the home-buying process and is paid at the time of the service. Think of it this way, if you plan to spend $150,000 on a new home it is merely 0.3% of that to prevent you from making a “Money Pit” investment.
PurposeThe inspector you choose has one primary job--FIND EVERYTHING POSSIBLE that is wrong with the house. Keep this in mind, because the reports can be daunting. It doesn’t mean that the house is a “tear down,” it just means they have done their job educating you on the condition of the home. The best inspectors provide a categorized and prioritized list of defects that can help you determine what to focus on when making your final decision on how to proceed.
ResponseOnce you’ve completed all the inspections you plan to perform, it’s time to decide your next step, of which you have many.
1. Accept the property “as is” and happily skip toward settlement.
2. Terminate the contract--if your contract is written as such, you can terminate the contract based on the findings in the reports and receive a full refund of your deposit money.
3. Request repairs--this is where your Agent comes in. There are strategic ways to itemize and prioritize this request so that you are getting the most done, with the best reaction from the Seller.
4. Request a credit--if you feel that you prefer to do the work and have quotes to support your request, you can ask the Seller to credit you toward the repairs. This becomes a little tricky - if the number gets large - your Agent and Lender can make sure the amount is within the acceptable limits of your financing.
In most cases, a Seller will be responsive to reasonable requests that are presented in a detailed, documented fashion. In specific situations, the Seller may stipulate that the home is being sold “as is” and no repairs will be made - this can be true of private sales and most definitely applies for short sales and foreclosures. In “as is” situations, the inspections are purely for the Buyer information purposes only, make sure you prepare to just say no in the event you find something that is a dealbreaker.
For more information on inspections and the inspection contingency period, give us call so we can answer all your questions!
You can reach me at: (610) 427-4420