The Home Inspection Process
You have secured a mortgage commitment from your Mortgage Broker, and after an exhaustive search, you have found the perfect house. The house appears to be well maintained, with manicured lawn and all the amenities you always wanted. You sign a purchase agreement and 45 days later, the closing is completed, and you have moved into your dream house.
Two weeks later, after a major rainstorm, you notice that a large water stain has appeared in the master bedroom and living room. You call in the plumber to see if a leak has developed in you plumbing system. After an extensive search the plumber advises you that the plumbing system is fine, and the roof is the source of the leak.
After consultation with a roofing company, you are informed that the roof is completely shot and a complete replacement is recommended at an alarming cost of $10,000! You depleted all your savings to purchase the house, and you do not have any available funds to fix the roof. Suddenly, your dream house has become your worst nightmare.
The scenario that was described above could have been prevented or at least minimized by having the home fully inspected by a home inspection company.
The intent of a home inspection is to uncover hidden flaws in a house, so that the prospective owners are aware of these flaws before purchasing. Once these deficiencies are found, there are a number of options available to the buyer of the property:
- If the deficiencies are numerous, the buyer could decide not to purchase (if the contract was conditional on a favorable home inspection).
- If the problems are minor, the buyers might decide to fix the problems at their expense.
- The buyers could have the sellers fix the problems at the sellers' expense.
- The seller could reduce the price by the amount of cost due to repair deficiencies or issue the buyers a check at closing for the cost of repairs.
- The sellers and the buyers can agree on what deficiencies are appropriate for the sellers to repair, or buyers could be reimbursed the cost of repairs/replacement for the agreed upon items that the buyers will repair after closing.
The purchase of a home is a significant investment and shouldn't be done without having a comprehensive inspection.
A comprehensive inspection should include: Roofing, Plumbing, Structural, Air Conditioning, Pool/Spa, Sprinkler, Appliances and presence of Termite Damage. The cost for a comprehensive inspection runs from about $250 - $500, with additional cost for larger homes (over 3000 sq. ft.), or certain specialize inspections, like Radon testing.
A thorough home inspection takes an average of 2 to 3 hours, and it is recommended that the buyers be present during the inspection to ask the inspector questions relating to the condition of the house. Also, a home inspection will only uncover visible defects, since often time the house being inspected is occupied.
Most if not all builders give a one-year warranty or ten-year structural warranty on a new home. The problem occurs when builders go out of business six months or a year down the road. A significant number of builders go out of business every year. Will they honor the warranty? Will they respond to your request to make repairs after closing? Builders are notorious for not responding in a timely manner to buyers request for repairs or make numerous attempts to repair an item without success.
Finally, the homebuyer needs to be aware that for a home inspection to be valuable, buyers must include a clause in their purchase contract stating, "The sale is conditional on the house passing a comprehensive inspection." Otherwise, Buyer Beware!
How to Hire a Home Inspector
Consumer advocates, real estate experts, and experienced home inspectors recommend taking the following precautions when choosing a home inspector:
If you are about to buy a house, insist that a "general inspection contingency" clause be put in the contract. This clause gives the buyer liberty to break the contract if any part of the house is found deficient. A seller or real estate agent may prefer a "specific inspection contingency," which allows the contract to be broken only if defects are found. Be sure the contingency clause allows enough time to find a reputable inspector.
Ask friends and associates for recommendations based on their own experiences. Seek referrals from people who had inspections performed within the last few months. Remember, defects that can lead to disillusionment may take time to appear.
Avoid referrals from someone who stands to benefit from the house sale, such as a real estate agent.
Before hiring an inspector, ask whether he or she will do a detailed, technical inspection
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