I have had the privilege to work with many first time homebuyers. In this market, with short sales, foreclosures and mulitple offers on properties, I often spend months working with my clients to get them into their first home. One area of the real estate transaction that I emphasize to my clients is they must get a home inspection! My clients are purchasing a home worth $200,000 or more. An average home inspection is $250--I consider that a small but wise investment. Let me give you a great example of how important a home inspection can be.
Last year, I worked with a very nice couple and we looked for months for the right home. Finally we found it! We submitted our offer and after weeks of waiting (it was a short sale), we got a full acceptance. I always tell my clients that when I call to tell them their offer was accepted, they must immediately set up their home inspection. They set up their home inspection for the next day. The inspection was going along just fine--the inspector climbed under the house, went up on the roof, checked the plumbing and electrical, etc. About 2 hours into the inspection, the last area he needed to check was the attic. He climbs up into the attic and within a couple of minutes, he steps down and with very little color in his face, and he asks me "have you had the disclosures on this house?" Since we just got acceptance, I had not received the disclosures. I told him "no, why?" He said that the house had a major fire in it at some point and he was very concerned about the roof structure. What?!! Sure enough, I looked in the attic and there was clearly a fire at some point. I immediately got on the phone with the agent who was not aware of the fire. She called her client who said she wasn't aware either. I also checked with the local fire department and their records only went back to the year 2000, and there were no fires during that time. Okay, I see this deal beginning to fall apart. What are we going to do? Fortunately, the seller's agent was proactive and professional, and said she would talk with the lender. In the meantime, we brought out a company that does fire restoration and repairs. After they checked out the attic, they confirmed that the roof structure was compromised. I was told that it could cost up to $25K to fix! Again, we see this deal falling apart. I couldn't imagine that the lender would pay for this repair. The end to this very long story is that the lender paid for my clients' roof to be repaired to the tune of $10K (they also paid my clients closing costs and $2K in termite repairs!). My clients, the lender, the seller and the agents walked away happy. What would have happened if my clients didn't spend that valuable $250 on a home inspection. There was no evidence anywhere else in the house of a fire. My clients would not have discovered it for months, if not years.
Bottom line is spending $250 in the short run on a home inspection can save you thousands upon thousands of dollars in the long run. Get a home inspection!
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