Which Inspections are Necessary When I Buy a Home?
When I meet with a buyer to write a purchase contract, we discuss the recommended inspections and property condition. Based on the items in the seller property disclosure, the age of the roof and mechanicals, and the overall condition of the home, the buyers have the option of several different inspections. Inspections are an out of pocket cost for the buyer, but it may save the buyer thousands!
1. Whole house inspection-This is the most common and highly recommended, even for new construction properties. The most expensive and most comprehensive, this is the largest investment of the buyers' time and provides the most information about the home's current condition.
2. Septic and Well Inspections-This is only for properties that are not served by public water and sewer. In Iowa, the septic and well inspections are paid for and provided by the seller. The septic inspection is required to pass the county requirements in order to pass and have the ability to change the title.
3. Radon inspection-This one is recommended in our area as it is a 50/50 chance that radon will be present at a level higher than 4.0 pc/L as the EPA guideline allows.
4. Termite/pest inspection-The buyer orders and pays for the termite/pest inspection with the option to void the contract if there is damage/active termites, if the seller will not remedy or treat, and if the lender requires an additional structural inspection to insure that the property is sound as a result of previous infestation. Only in the case of VA loans, the seller is required to pay the cost of the termite inspection.
5. Mold or air quality inspection-This is not as common in our area, but there are clients that have health concerns and it would be an optional inspection.
6. Lead paint inspection-This could be ordered for any home that was built prior to 1978 where there is peeling or chipped paint and the buyer could be concerned about lead base paint being present on the interior or exterior of the house.
These inspections are considered contingencies of the contract and are usually completed within 10 business days from the acceptance of the offer between the buyer and seller. Not all inspections are required in every case and it is the buyer's decision. In 13 years of real estate, I can honestly say that there have only been a handful of times where a buyer has decided to waive all real estate inspections. And in all but one of those, it was a sold as is, bank owned property and the buyer was an investor that looked over the house prior to their offer and knew what they were buying.
The one that waived inspections that was not an investor, I asked them to sign a hold harmless agreement. Which that stated that I recommended an inspection and the buyer had refused. That turned out to be a good decision as after the buyers closed and moved in, there were many issues that were not seen/disclosed and no recourse for the buyers to come back to the seller since they waived all real estate inspections. Unfortunate, but a cautionary tale.
The $350 that you spend to have an inspector look at the home is a small price to pay for your piece of mind. Purchasing a home is a huge financial investment and while an inspection does not guarantee that the home is "perfect" and will not have any issues, it allows the buyer the opportunity to request repairs if necessary or void the contract if there are too many items that need repair in the future.
Next, I will discuss the recommended process of the inspection remedy request and how much a buyer can expect for repairs from the seller.
Keep smiling!
Karen
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