Most buyers opt to have the home inspected by a structural engineer or professional home inspector. While this is a good start, depending on the property, it may be just that; a good start. Standard tests for general structural integrity, energy efficiency, water quality, radon gas, lead-based paint, soils testing, mechanical (HVAC), electrical, domestic plumbing, wastewater adequacy testing, environmental hazards and underground fuel storage tank integrity are all designed to give you, the buyer, a comprehensive overview of the condition of the property.
The costs for inspecting the property are typically done at the buyer’s expense, unless otherwise negotiated in the purchase agreement.
Once complete, the testing or inspection firm will provide you with a written report outlining any defects discovered during the inspection. A repair addendum outlining the requested repairs along with supporting documentation must be submitted to the seller within the contractual discovery period. Although sellers are not required to complete any repairs, as a general rule, sellers will make those repairs deemed necessary by the lender for financing the property. A repair-credit or closing costs credit equal to the cost of repairs is also a fairly common occurrence. If you are not satisfied with the results of any test performed during your contractual discovery period you have the right to cancel the contract and receive a full refund of your earnest money. To qualify for this refund you, or your representative, must notify the listing agent within two business days of receipt of the inspection report.
If you choose not to have the property inspected or if you fail to notify the seller, in writing, of any defects within the property within the 15 day calendar period, it is understood you have accepted the condition of the property as satisfactory.
When evaluating a potential purchase, bear in mind that new construction properties should receive the same scrutiny as existing homes. Reputable builders will provide you with copies of the energy rating certificate (if available) and the building inspections, which show the property has been inspected at every stage of construction from the footings and foundation, framing, mechanical, electrical and plumbing to the final inspection after the home is complete.
The cost of inspections can run from $400-$500 for a simple home inspection to several thousand for a full battery of inspections. When you consider the average price of a single family home in Fairbanks is $221,600 the money spent on inspecting the property is very inexpensive insurance against discovering a major defect after you move in.
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