Home Buyers - Inspections and Repairs

If you are buying a home, regardless if its new construction or re-sale, you should have a licensed inspector check the house for potential flaws and issues.  A general home inspector will check to make sure the house structure is safe and that its systems (electrical, structural, plumbing, HVAC  and its appliances) are functioning as intended.  Even if you are comfortable with your Realtor or your spouse opinion of the house its important to have an additional and trained pair of eyes looking out for your interests.  Home inspections are not required by law and are solely your decision, but remember that once you close on your home you will inherit all of its wonders, as well as its flaws.  The point is to make sure you know exactly what you are buying and you are getting your moneys worth.

You must realize that there is no such thing as a flawless home and all homes will require some amount of repair and updating.  By the way, there is a difference between the two.  In most residential real estate transactions a buyer will typically make an offer on a house prior to inspections and without knowing the exact condition of the home.  Yes, sellers are required to disclose any "known" problems with the house, but some things might "slip" the sellers mind.....Buyer Beware!  Repair issues will most surely affect the value of your purchase and this is your chance to not only discover them before you close, but to negotiate for the repair and/or compensation of these issues with the seller.  If the repair issue is covered by the terms of the contract and the seller decides not to make the repair then you can terminate the contract and walk.

Every buyer is different and has unique tolerance for handling repairs.  A particularly "handy" buyer might be in the market to find a "fixer-upper" and will most certainly be expected to make any and all repairs.  The goal here is to find a home that is priced below market value and that can absorb the pricey repair/remodeling job in store.  On the other hand, a busy urban buyer might be seeking a newer, low maintenance home and is comfortable paying a premium for its stellar condition.  Flaws uncovered by an inspector will most definitely bring the parties back to the negotiating table in order to make amends to the value of this property.

To summarize,  talk to your buyer's agent about what you are looking for in terms of home condition and your comfort level with potential repairs.  Also, familiarize yourself with both typical and major home repairs and set your home search accordingly.  When you make an offer on a home make sure you hire a licensed inspector to have the house checked out from top to bottom. If repair issues are uncovered, have your Realtor ask the seller to make the the critical repairs that are covered by the contract.  One important note, make sure you put your repair request in writing and that you are very specific on how you want a flaw fixed.  A seller might not see eye-to-eye on a repair and could take a short cut in remedying it.  Repairs can be a touchy subject and can cause some contracts to fall apart.  Its important to know what your rights are and to set a "bottom line" on all of your terms.  If you and the seller cannot agree on the repairs be prepared to walk away.   But at the same time, don't let a cracked roof shingle and pride keep you from your dream home.  Purchasing a home is a business decision and requires a bit of "give and take" from both sides.   

Every state has its own standards for inspectors and you should check to see what is required for the inspector licensure in your state.  Visit  http://www.ashi.org/customers/state.asp for more info.  Most inspections will charge around $150 to as much as $500 depending on the company you select and on the size of the house.  Shop around and interview a few inspectors and ask them why you should use them versus another company.  Another thing to consider is having a professional system technician come out to inspect specific items (i.e. heating and air mechanic to check the HVAC, a contractor or roofer to inspect the roof, structural engineer to inspect the foundation, etc.) in addition to the general inspection.  It all depends on your comfort level, finances and terms of the contract as to how detailed you might want to be during inspections.  Spending a few hundred dollars upfront may save you from buying a "money pit" and spending thousands of dollars on repairs you could've avoided to begin with.