Are you going to save money by waving a home inspection? For first time buyers, it may seem like a home inspection is an unnecessary cost. However, experienced buyers will appreciate how important it is to have a home inspection.
In fact, a home inspection can stop you from making a costly mistake. Investing in a home is likely to be the most expensive undertaking you will ever make in your life. Ask yourself if you would put your money into another investment such as a pension plan without having checked it out. The answer is probably that you would not dream of doing so!
Many houses look like they are in perfect condition to a laymen. It's possible a decent percentage of these homes can actually have serious defects. The kind of things that can end up costing thousands of dollars to fix.
A fair amount of sellers never do anything to get their property ready for an inspection, including skipping fixing obvious defects. Of course, not preparing for a buyer's home inspection is pretty fool hardy. Any real estate agent will tell you it is a significant hurdle to clear in any home sale.
Sometimes in crazy seller's markets it doesn't matter.
Why Do Some Buyers Waive a Home Inspection?
In a strong seller's real estate market the temptation is real to forgo a home inspection. By waiving a home inspection you will make your offer look stronger to a seller. Any buyer who has experienced real estate in the last few years understands it is ultra competitive.
Being involved in a bidding war for a home has become commonplace. After you have lost out on a number of homes you've really wanted to purchase it's easy to become desperate and start making hasty decisions.
Waiving a home inspection in many cities and towns has actually become common place. But is it a smart move? Most real estate agents will scream from the roof tops - NO!
In most real estate contracts you will be given a due diligence period that lasts seven to ten days. There will typically be a contingency for home inspections.
The contingency will allow you to escape the contract if you find serious structural, mechanical or safety defects. By having an inspection you get a solid education of the home. Armed with vital information about the property, you're able to make a more informed decision.
You will also be able to re-negotiate with the seller if necessary. There are some strong reasons why skipping out on a home inspection could be a significant mistake. Learning about the entire home inspection procedure is a smart exercise on a buyers part. Maximum Real Estate Exposure's resource is invaluable for providing that education.
A Home Inspection Will Avoid You Making a Costly Mistake
Not all sellers are honest with you or their Real Estate agent. He or she may have the best HVAC system available on the market, but is it working okay? An experienced home inspector will check everything and make sure the HVAC system works. Not only that, but all experienced home inspectors will also check that maintenance schedules have been kept up to date.
As a matter of fact, a home inspection will include many things you would not know how to check and things you would not dream of researching. Even if you have previous experience of property purchases, you should always make sure a home inspection is carried out.
In some states a seller does not have to disclose any problems with their homes. Non-disclosure is known as Caveat Emptor or "let the buyer beware". Are you beginning to see why waiving your rights to check out the property could be a significant home inspection mistake? Trust me it is not worth the risk!
Can You Walk Away From the Property After a Home Inspection?
When you are not happy with the results of the home inspection, you have a couple of different options available to you. You can choose to walk away from the property. If the outcome of the inspection is very negative, this could be the best thing to do.
There are some red flags which would cause any prospective home buyer to walk away from a deal. Real Estate agents call these home inspection deal breakers. If the home needs a lot of work, and you are not sure how much it is going to cost, it is always a good idea to move on. Dampness which has caused mold, subsidence which has caused settling, and roof replacement are among the red flags which would make most buyers to turn their back on a property.
However, if the results are not too bad overall, you may want to re-negotiate the deal instead. Go back to the seller's Realtor with all of the details of the inspection report. It's in the interest of the Realtor to help you out as much as possible. If there are issues, an experienced real estate will understand he or she will come up against them again.
It is in their interest to achieve a sale of the property, and any experienced real estate agent would rather negotiate with the seller to achieve a better price now than risk it going back on the market.
It will be a good idea to get some quotes for any work which needs to be done. Most of the time, a home inspector will not give you an idea of repair costs.
Things to Look Out For on A Home Inspection Report
Not all red flags on a home inspection report may refer to damage. You should also look out for comments made about general maintenance of the property. Inspectors provide a wealth of information on general upkeep.
If you are purchasing a home in an area where you are likely to experience high winds or frequent storms, you want to make sure the roof has been well maintained. Ask the home inspector to do some extra checks and ask when the roof was last replaced. Roofs are expensive to replace and you want to make sure it is as secure as possible.
Another part of the home not to underestimate is the importance of insulation. Having the right kind of insulation in a home can save you a small fortune when it comes to energy costs. Insulating materials have come a long way in recent years, and the right ones can save you a lot of money. Not having enough insulation, or good insulation is a great place to start improving when you move into a new home.
Also if you are purchasing an older home, look out for asbestos. It is still found in older style properties. Tragically, many homeowners don't know that it is in their homes. Past home inspections may have been less rigorous and some points can have been missed.
Finally, never feel bad about pointing out the results of a home inspection to the real estate agent and seller. Always remember it is your money that you are investing in the property. Just be sure, however, that you are focusing on the big issues and not the minutia.
No home is perfect. Lots of buyers lose sight of the purpose of a home inspection. Frankly, it is not to give the homeowner a punch list to make the property to your liking. The home inspection is about discovering structural, mechanical, and other hazardous defects that would cause you not to move forward with the transaction.
By skipping a home inspection, you miss that opportunity and take on a lot of unnecessary risk.