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You found the house of your dreams. The sellers accepted
your offer. Now what?! Well, the majority of homebuyers will turn to a home
inspector to determine whether or not this home is, in fact, so dreamy. In most
contracts, the buyers will have a certain amount of time (usually 3-7 days) to
bring a home inspector into the property and negotiate the contract based on
their findings. The home inspection is one of the most important steps you can
take to make sure your new home is, not only a safe place for your family, but
also a sound investment.
Of course, the home inspection process can be quite
stressful for buyers and sellers alike. But, as a buyer, if you do your
research and hire an inspector that knows his stuff - and, read this article on
the five biggest mistakes buyers make during the home inspection process - you can
ultimately avoid buying a money pit.
Mistake #1: Not having new construction inspected
The house is brand spanking new. What in the world could be
wrong with it? Why would you even think of spending $400 bucks to have an Inspector
inspect it? Well, because new construction may be new….but, nothing is
perfect.
Homebuyers are notorious for making the mistake of not
having new construction inspected. Most assume that it must be in good shape in
order to pass all local ordinances and codes. Well, unfortunately that is
sometimes not the case. One inspector I have used in the past once found over
300 mistakes in a new construction home. Thank goodness the buyer still had an
option to walk away. If not, he would’ve
been investing in a nightmare.
So, what am I trying to get across here? Please don't assume
your builder- or the contractors – built everything right just because the home
passed code. An inspector is your last line of defense against structural
defects that could make your home a poor investment.
Mistake No. 2: Choosing the wrong inspector
You know that friend of your friend’s that just got his
inspection license and is going to cut you a deal? Well, even I like to save a
buck or two – but, when it comes to such a huge investment as purchasing a
home, you need a trustworthy professional. You want to choose someone who knows
what they are doing and have good reviews to back up their work.
As a real estate agent myself, I hate to say this – but, don’t
just go with your Realtor’s preferred inspector. That could start to become a
conflict of interest. I recommend doing your own research. The three most well-known associations are the
American Society of Home Inspectors (ASHI) , the
National Association of Home Inspectors (NAHI) and the
International Association of Certified Home Inspectors (InterNACHI).
Check out these resources when choosing the right inspector.
Make sure to ask about licensing, professional affiliations and credentials,
and whether or not the inspector carries errors and omissions insurance.
Mistake No. 3: Not being there for the inspection
As an agent, I have had clients that choose to shadow the
inspector during the whole inspection. I don’t recommend this, because, I mean –
give the man some room to do his job. But, what I do recommend, is that you
meet your inspector at the property when he is finished with the inspection.
This way, instead of trying to make sense of the written report you get from
the inspector - you have a chance to see the issues he discovered first hand.
From experience, I can tell you that those written reports can either make a
small issue look huge, or a huge issue look small. So, make sure you are able
to understand the issue clearly by seeing it with your own two eyes.
Mistake No. 4: Not taking the inspector's recommendations seriously
It is the job of the buyer’s agent to negotiate and come up
with a resolution when it comes to addressing the issues found in a home
inspection report. But, sometimes, some issues are swept under the rug during
negotiations. In this case, buyers don't follow up on items discovered in the
inspection before they close on the property.
All issues, big or small, should be taken into consideration before investing
in the property.
I don’t know what was
in the water, but, three of the homes I sold last year needed new roofs. We
brought a certified roofing expert in who was able to get the insurance company
to pay for a total roof replacement before closing. If the inspector hadn’t
caught these roof issues during the inspection, then, the new owners would’ve
had to come out of pocket big time.
On that note, I also recommend bringing in
different experts to address specific issues found by the inspector (plumber,
electrician, roofer, etc). Many of these contractors will give you a FREE
inspection/estimate – sometimes all you have to do is ask. The golden rule
here: it’s better to be safe than sorry.
Mistake No. 5: Expecting your inspector to have a crystal ball
There are some extremely knowledgeable and skilled inspectors
out there. But, unless he has ties with Nostradamus, he can’t see the future. Sure, an inspector can look at an aging air
conditioning unit and tell you the average number of years a unit typically
lasts. But, he can’t tell you an exact date when it will bite the dust. The same goes for any other potential future
issue the home may have. You know that 15 year old gas water heater that should’ve
only lasted 10 years? Well, it may be all luck now, but expect to have to
replace it in the new future.
So, even though a good inspector can give you an idea of
what may need to be replaced, he can’t know for sure. Make sure you take that into consideration
when negotiating repairs. I’ve seen a seller replace a whole furnace unit
before closing. It can happen.
Like I tell my kids, a worry-free life is a
happy life. So, eliminate some of those future worries and take care of the
situation before investing.
In Conclusion:
I know the whole house-buying process can be stressful. But,
if you do it right, it can actually be fun. As I tell my clients, take
advantage of those due diligence days (# of days after you’re under contract
that you have to determine whether or not you want to walk away or negotiate).
Bring in a trustworthy, knowledgeable home inspector and make sure to listen to
him. Remember, according to the ASHI itself “…the home inspector has no vested
interest in the buying process - their income is not connected to the
transaction. You are paying them for an inspection, that's it. They should
always be neutral.”
So, don’t stress out too much during the inspection process.
Consider it a learning experience and make the best of it!
Emily Benner
REAL Estate Expert
PalmerHouse Properties
678.458.2284
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