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Step 9: The Importance of Inspection Do I Need an Inspection?
In my opinion, home inspections are absolutely critical. In fact, I cannot think of a situation in which I would NOT recommend that a client have a professional inspection. When you consider that this purchase is probably the largest single investment you have, and that the health and safety of yourself and your family is at risk, the importance of a home inspection becomes very clear. Only a professional inspection can give you the peace of mind you'll need to live in your new home.
The cost of an inspection is small when compared with the magnitude of hidden home flaws that we find with surprising regularity. Since hidden flaws are negotiable items, it's important to have a written opinion from a qualified inspector for purposes of negotiating credits or repairs. I have seen $300 inspections result in $20,000 mold-elimination credits. Doesn't that seem worthwhile, from the standpoints of both health and investment?
What Inspections Aren't
The home inspection is not for the purpose of assembling a list of normal wear-and-tear items to be used as a wedge to reopen price negotiations after the fact, or as a convenient means to negate a sales contract. Similarly, it is not intended to demand retroactively that a seller repair items obviously defective at the time the home was seen by the buyer. These items (such as leaky faucets, wall cracks, broken window panes, etc.) should be addressed specifically in the contract or simply considered in the price negotiations.
Whom Should I Hire?
You are welcome to use any inspector you wish, but I highly recommend hiring a licensed, ASHI (American Society of Home Inspectors) certified professional. ASHI is a national professional association for home inspectors that requires experience, testing, and education before certifying its members. Lincensure assures you that the inspector is in good standing with the state and is insured against any damage that may be done to the home during the inspection itself. If you do not have someone in mind, I will be happy to provide you with a list of people I've worked with in the past and trust.
What Will an Inspection Cost?
Inspection costs will increase with the size of the home as well as the number of heating and cooling units that need to be tested. Schedules and costs will vary somewhat, but you can expect to pay around $300 for a condominium or a small house, and up to $450 for a large home with multiple mechanicals. Be prepared to pay the inspector at the time of inspection, usually by personal check or cash (remember to ask for a receipt). Also, you may be asked to sign a liability waiver before or at the inspection. Read the contract carefully, and contact your attorney immediately with any questions or concerns.
But I Only Have Five Business Days!
It's true that standard contract language only allows you a limited amount of time to complete your inspection. Arranging an inspection into your timetable may be difficult, but inspectors are accustomed to working on tight timelines. However, you may have make a few phone calls before you find a licensed, certified inspector who can meet you at a mutually convenient time.
Should I be Present at the Inspection?
Clients ask me this all the time. My response is: ABSOLUTELY. This is your home, and you will benefit enormously from learning first hand from the professional inspector about the condition of the property you are about to invest in. Being present gives you a chance to ask questions about the property and receive answers that are not biased. Generally, an inspector's verbal comments are typically more revealing and detailed than what you will find on the written report. Additionally, the inspector will show you how to maintain and care for the mechanicals of your home and give you pointers on how to otherwise keep the property in good shape. Don't miss this wonderful opportunity!
Do I Receive a Report?
Most inspectors will report their findings in a written document, which you may receive at the actual inspection or soon thereafter. Additionally, the inspector will request permission to give me, your agent, a copy of that report. We will use this report to negotiate any repairs or credits..
Negotiating Repairs and Credits
Immediately following the inspection, your attorney will make a written request to the sellers to either make certain repairs or give you a credit so that you may have the repairs done at a later time. We may even need to bring in professionals to provide written estimates of the repairs to strengthen our position.
In general, I feel that credits are generally better than repairs, as they allow you to hire a certified or licensed professional on your own schedule. The downside is that you will need to coordinate the repair. However, you will have the peace of mind knowing the job was done properly.
Whether a seller will agree to any or all of our requests will depend greatly on the personality and situation of the seller, as well as the current real estate market and existence (or not) of other interested buyers. I have seen cases where sellers refused to provide any credit or make any repairs, but I've also seen cases where every request was granted without question. The sellers may bring in "competing" estimates for the work that needs to be done.
We can maximize our chances of success by really focusing on health and safety items and by being somewhat flexible about the outcome. Usually, negotiations result in a number somewhat lower than that originally requested. It's important to remember that once we reach the point in the negotiation where the seller says "no", you, the buyer, will then have a decision to make: to proceed with the purchase or not. It is often helpful in these cases to consider the cost of the repair as a percentage of the purchase price--it really puts the dollars into perspective.
Your Skilled Negotiator, Redux
I have been through inspections and resulting negotiations many, many times. I will use my knowledge and experience to help you secure the most repairs or credits possible. Together, we will discuss all your options and come to a decision that you can live with.
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