Let's Talk Home Inspections -- The Buyer's Guide

Welcome back everyone! Hope you've had a great week and had a wonderful holiday last week! Our focus for this week's blog is an important one for both buyers and sellers, the home inspection. We actually want to devote a couple posts to it because there is a great deal of information for both sides in the real estate transaction. We are going to start with the Buyer's Guide to the Home Inspection.

 This step in the real estate transaction can be stressful and frustrating for both buyers and sellers. The parties essentially negotiate the repairs and inspection responses just like the purchase contract, and there are times that the inspection leads to the deal falling through. We don't want that to happen, and we know our buyers and sellers don't want that to happen, so we are sharing our guidance on navigating this step and getting closer to the closing table.

Today we're talking about the buyer side of the inspection process. If you're wondering who to contact, when to schedule, what to look for, and how to read that long report, read on. We've got you covered! 

The inspection process happens after the buyers and sellers reach an executed purchase contract, meaning an agreement has been reached for all terms of the sale of the property. There is a section in the purchase contract that states how many days buyers have to get the inspection done and send a response to the sellers. Sometimes 7 days is the time frame, and other situations call for 14 days. It just depends on what is in the contract. What buyers need to remember is sticking to that time frame and making the call to the inspector as soon as possible because they are responsible for "kicking off" the inspection process. The buyer's agent will stay on top of this as well. 

The buyer's agent can recommend several inspectors that are well known in the community, or buyers can search themselves -- it's completely their choice. Just make sure the inspector is licensed and specializes in home inspections. Buyers simply need to call the inspector, get the inspection scheduled, and then let the sellers know when it will be so they are in the loop as well.

Typically, if buyers are in town, an inspector will recommend they meet at the property for the last 30 minutes or so of the inspection. This is an ideal time for the inspector to go over things he may have found in the house, point out areas in need of repair, and answer any questions. The buyer's agent may go as well, but it is not necessary.

While the inspector is at the home, he will review the following:

• Room-by-room review
• Exterior home components
• Electrical systems
• Foundation and structural components – both interior and exterior
• Heating/air conditioning systems
• Plumbing systems
• Attic/basement/crawl spaces

A day or two later, the buyer's agent will receive the inspection report, review it, and then present to the buyers. Be prepared, these inspection reports are typically 20-30 pages! They're very thorough!

Here are a few of the items an inspection report might include:

• Maintenance problems such as rotting decks, paint chips, water damaged ceilings, etc.
• Electrical problems (wiring, malfunction, etc.)
• Drainage problems
• Roof leaks and defects from aging
• Poor ventilation, especially in an attic. Be sure all vents are working properly.
• Excess air leakage due to poor weather stripping and caulking around fixtures.
• Failed window seals, which are routinely found with dual pane windows.
• Environmental contamination caused by asbestos, mold, formaldehyde, lead paint, radon, soil contamination and/or water contamination.
• Faulty lines in water heaters, overflow piping and/or hazardous flue conditions in a fireplace.

 Many buyers are thrown off by how many items are noted in the inspection report. Your agent will go through the report with you and will explain anything that needs an explanation. The majority of items in the report are just minor things to monitor or maintain. The items we are concerned about in the transaction process are the safety and defect items. If an inspector finds issues in the home that are safety concerns or defects in function, those should certainly be on the inspection response and must be fixed by the sellers. Those, technically, are the only items that have to be fixed, otherwise the buyer can walk away. Buyers may ask for other items noted in the report, but they could be negotiated out -- however, it never hurts to ask! 

Once the buyer's agent reviews the report and discusses it with the buyers, the inspection report is prepared, signed, and sent to the seller. Sometimes it works out that the seller accepts the first response, but often the parties will go back and forth a bit to make sure everyone is satisfied with the terms for repairs.

After an agreement is reached, the sellers are responsible for having necessary repairs made in the time frame given. Since this post is directed to buyers, our advice is to ask for repairs to be made before closing so everything can be looked over once more at the final walk through. Also, it is smart to ask for invoices from the sellers for all repairs made since buyers might not be able to see some repairs.

The inspection is an important step in the real estate transaction, and as we said, it can definitely be stressful to navigate, but if you know what to expect and are prepared to work through it with your agent and the sellers, it will go smoothly. 

For a few more inspection tips check out this article on the 5 Biggest Home Inspection Mistakes. 

What other questions do you have about home inspections? Comment or send a question anytime on any of our social media sites! We would love to hear from you! 

In the meantime, have a great week and come back next week for the Seller's Guide to Home Inspections.