Before you close, there’s one more step! A home inspection is one of the most important items on the home buying checklist. Yet, too many new homebuyers don’t fully understand what occurs during a home inspection. Or — even worse — what steps to take afterward.
What Are Home Inspections & Why Are They Important?
In today’s competitive home buying climate, some buyers are forgoing a home inspection altogether. This happens if they are flush with cash and plan on doing a major overhaul anyway. But for most of us, home inspections are a must!
As a potential buyer, particularly if you’re a first-time homebuyer, there’s no good reason not to do an inspection. If a seller or seller’s agent pressures you to skip it since other bidders are willing to, just walk away. Losing a home is not as painful as sinking a bunch of money into repairs down the road.
Home inspections allow a professional who has no skin in the game to evaluate the house fairly and in its entirety. Everything is given a third-party once-over, from the foundation to the roof to the heating and cooling systems. Furthermore, having issues documented can pressure the seller to fix major problems before you — the buyer — ends up footing the bill.
But, before setting up a home inspection, let’s look at 5 things you ought to know.
It’s Not Free, So Save a Little Extra
A home inspection is typically scheduled by you, the homebuyer, and your real estate agent when both buyer and seller have agreed on a price and the contract phase begins. The buyer is responsible for the cost, which is payable to the person performing the home inspection on the day it occurs. Prices vary widely by size, age, and location of the home, and according to a quick check at homeadvisor.com, it’ll typically cost between $300 to $415.
However, you can expect to pay a lot more if you need to go beyond the basics, like testing for hazardous materials. Still, these costs are a drop in the bucket compared to what you might have to pay if unforeseen repair costs pop up after the sale. Our recommendation is to start a relationship with a reputable inspector early on so they will be quick on the uptake when you need to move fast. They’re busy these days, so start researching now.
It’s Not Quick, So Don’t Rush It
Don’t think you can squeeze this in during lunch hour. A thorough home inspection can typically take between three to four hours, so you’ll want to take the day off. We recommend that you’re there in person. That’s the best way to learn as much as possible about the home you fell in love with and are about to purchase.
After the inspection — usually within a few days — you’ll receive an official report. Don’t get shocked when you read it, as it may include disclaimers and referrals to other licensed experts like structural engineers, electricians, plumbers, mold specialists, and pest inspectors. And just like anything else, they’ll cost money. None of this is meant to scare the buyer away; it’s all about the inspector highlighting potential problems and protecting themselves from potential liability.
It Could be a Long List, Be Prepared
In your home inspection report, you’ll notice a hierarchy of issues. The most important matters are usually listed first. Those are the ones to really pay attention to. We’re talking about things like the condition of the home’s foundation, plumbing, roof, and HVAC systems. Electrical wiring and appliances usually come next, with any cosmetic flaws listed towards the end.
The report will also list any recommendations for improvement. We’re telling you this so that you don’t feel it’s necessary to take notes during the inspection; it’ll all be well documented in the report and given to both the buyer and the seller.
Consult With Your Agent Before Moving Forward
Make sure your real estate agent gets a copy ASAP. They’ve seen plenty of these inspection reports, and none of these issues will be new to them. They’ll give advice on which issues are deal-breakers and which are not worth worrying about. And they will help you devise a strategy to get the most critical concerns addressed before you get locked in.
Sharpen Your Negotiating Skills
After receiving and reviewing the report and sharing it with your realtor, you’ll need to decide whether or not you want to negotiate the issues the home inspector found. Your agent will be able to guide you through which issues to negotiate — and what to ask for. Negotiations might take the form of a repair, a credit, a price reduction, or perhaps no action is taken at all, which could lead to the deal falling through.
Don’t forget, it’s a competitive environment right now, so if you ask for too much, the seller knows he can probably fall back on another offer — and possibly do even better. On the other hand, asking for too little may leave you with buyer’s remorse and a need to take care of repairs out of your own pocket. Trust your realtor to help you find a happy medium.
Patience is a Virtue
Remember that a home inspection is not required by law in most states. Still, it’s highly recommended before finalizing a purchase, especially for first-time homebuyers. Many home inspections go very smoothly, and after the fact, you might think that you should have skipped it and saved the money. But, as the old adage goes: it’s better to be safe than sorry.
About the Author: Movement Mortgage
The Market Update is a weekly commentary compiled by a group of Movement Mortgage capital markets analysts with decades of combined expertise in the financial field. Movement’s staff helps take complicated economic topics and turn them into a useful, easy to understand analysis to help you make the best decisions for your financial future.
For more useful tips and mortgage information, contact Pam Cleary at Movement Mortgage today by visiting her website. You can also visit her at 7773 S. Suncoast Blvd., in Homosassa, Florida. Call her directly at (352) 634-0716.
Courtesy of Pam Cleary, Branch Manager, Movement Mortgage.
Your Citrus County Housing Market Specialists
With homebuyer competition heating up, our agents can help you navigate Citrus County’s HOT real estate market. Contact Next Generation Realty in Sugarmill Woods or Crystal River, Florida. Their real estate experts will help you find the perfect home in Citrus County. Speak with a professional today: Sugarmill Woods (352) 382-2700 or Crystal River (352) 794-6100.