When buying a home, it is important to be aware of any problems that may come up later. A professional home inspection will identify issues with the structure of the home, its systems (electric, heating and cooling, etc.), and its overall quality.
These issues can be minor or major, significant or insignificant, but it is important to be aware of them.
Many people are hesitant to pay for a professional home inspection due to the cost. However, this article will explain why this investment is worth making for the future safety of your home and family.
There are many ways to find an inspector and find out if there are any issues with the property. This article will explain how to pick an inspector and what parts of the house to inspect during an inspection.
You can get the seller to cover the cost of the home inspection
In most cases, the cost of a professional home inspection is paid for by the buyer. In some cases, however, especially in situations where the buyer has limited funds available, it can be advantageous for the buyer to have the seller pay for the home inspection.
In most locations, a seller offering their home at a fair market value will not lose money on the sale. This is because real estate agents list the property at a price they feel is fair market value and will attract buyers.
If you are a buyer trying to negotiate a below-market price for a home, having the cost of the home inspection covered by the seller may help you achieve that goal. Having an inspection that finds no problems with the home will help convince a seller that they are getting a fair price.
You can negotiate an even lower price
Many buyers are not aware that you can actually negotiate down the price of a home due to problems discovered in the inspection.
In fact, an experienced real estate agent will ask you whether or not you want them to include a contingency on a home inspection.
This means that they will ask the seller to lower the price of the home due to issues discovered during the inspection.
If you are firm on the price that you are willing to pay for the home, then your agent can still include a contingency on an inspection, but it may not be as effective.
An agent can only negotiate a lower price if there is a valid reason to do so. A reason that is always valid is the amount of money it would take to fix an issue found during an inspection.
You limit your financial risk
As mentioned before, the cost of a home inspection is minuscule when compared to the cost of purchasing a home. It is very worthwhile to invest in a thorough inspection because of the serious risks that would be taken if no inspection was done.
In addition to discovering potentially costly issues with the property, a professional home inspection includes a written report. This report gives detailed information about components and systems in the house, such as ceilings, walls, floors, plumbing, etc.
It also gives a grade for these components and systems based on specific standards. If there are any low grades given, it is recommended that these issues be addressed before moving in.
In addition to finding issues with the house itself, an inspector will also look at how things are being used. For example, if there is an issue with the A/C due to a leak, but it is being used properly, then it does not need to be fixed.
You reduce your personal risk
As buyers, we put a lot of faith in the home inspection process. We rely on the inspector to point out any issues the house may have that we as buyers cannot see or verify ourselves.
In fact, many sellers will offer a home warranty or repair plan only if an inspection uncovers certain issues. This again shows how important this process is to buyers and sellers.
The inspection gives you a chance to objectively evaluate the home and determine its true value. Many times, homes may have little issues that do not change the value of the property but are found during an inspection.
As mentioned before, some issues can be very costly and put you in a position where you have to make a decision whether to take action or not. This is why it is very important to take advantage of this process.
The home inspection uncover issues you wouldn’t have noticed
The home inspection performed by a professional inspector uncover issues with the property that you would not have noticed yourself.
These issues can be minor things that can be fixed easily, or they can be major problems that would cost you thousands – or even tens of thousands of dollars – to correct.
Some examples of issues the inspector will find include faulty wiring or plumbing, mold, and structural problems. All of these could potentially cost you money to fix after you purchase the home.
If the seller is willing to negotiate on the price of the home, then a good tactic is to offer a little less than what you’re willing to pay, but make your offer contingent on a clean inspection. This way, if there are any issues found during the inspection, you can negotiate down further to compensate for the repairs.
Or, if you find out there are major issues with the property, you can decide whether to still buy it or not based on the price reduction offered by the seller.
Home inspections catch hidden damage
Even if you are very knowledgeable about construction and homes, a home inspection can reveal important information about the property you are interested in.
For example, a professional home inspection will check the structural elements of the home, including the foundation, walls, ceilings, and roofs.
They will also check for things like water damage, mold, and structural issues that could be hidden or hard to detect. These include things like rotting supports or foundations, cracks or holes in the walls or ceilings, and improper ventilation.
Additionally, a thorough inspection will check for upgrades and improvements made to the home that may not be up to standard. For example, if the house has older wiring that does not meet current standards, this will be noted.
And finally, a home inspector will identify safety issues such as lack of smoke detectors or unstable stairs that need to be addressed.
Helps secure mortgage financing
A professional home inspection can also help you secure mortgage financing. Since the inspection results are reported to the listing agent, they are also reported to lenders.
Many lenders will not approve a mortgage for a property that does not pass a thorough home inspection. This is because the home inspector reports any issues with the structure or essential systems of the home, which could affect its value.
Lenders want to make sure they are lending money for a property that is worth what someone is paying for it. An inspection report that shows issues with the property will prevent this.
An inspection can also help you negotiate a better price. If there are issues found on the property, and you can prove that these issues can be repaired for less than one thousand dollars, then you have a strong negotiating point.
Helps you avoid costly repairs later on
In the case of this home, a professional home inspection would have revealed some major issues with the property.
The inspector would have checked for structural issues like earthquake safety and safety against fire and flood. They would have also checked for overall property condition including plumbing, electrical, and heating and cooling systems.
These checks are incredibly important as they could reveal costly repairs down the road. For example, finding underground flooding could lead to the discovery of water damage in the house which would be very expensive to repair.
In addition to a professional inspection, you can also request a structural evaluation. A structural evaluation is conducted by an independent professional who checks if the structure of the house is sound. This evaluation is cost-effective and worth doing!
There are many reasons you might want to make your offer contingent on a professional home inspection, but one of the biggest reasons is because it can save you thousands of dollars down the road.