Home Inspections: Deal Makers or Breakers

As real estate agents, We've witnessed firsthand how home inspections can dramatically influence real estate negotiations. These inspections often bring to light issues that can either be deal-breakers or opportunities for renegotiation. It's not always essential for buyers to request repairs from sellers; there are instances where inspections proceed smoothly, leading directly to appraisal. Nonetheless, this isn't always the outcome, so being prepared for different scenarios is advisable.

Here are a few specific instances we have had come up in our real estate experience:

Case 1: It is just a condo

Recently we had a young man buy a condo and he thought he would save some money on the inspection since the HOA covered the exterior of the building. "There really issn't much left on the inside that would be that expensive to repair is there?" Firstly, an inspection can reveal internal issues like plumbing, electrical, and HVAC problems that are not covered by the HOA. Understanding the condition of both the interior and shared systems like roofs or elevators, which may impact your unit indirectly, can help in making an informed purchasing decision. It will also help to see if the HOA is managing the complex well, or if you might be getting a special assessment in the next few years for say a new roof that is going to raise your HOA dues beyond what you can afford. 

Case 2: Don't think you don't need to do a home inspection on new construction!

In a surprising turn of events, our clients initially believed that a brand-new house wouldn't require an inspection, trusting the builder's warranty as sufficient assurance. However, we advised caution, suggesting that even new constructions can harbor hidden problems. The buyer decided to move forward with  an inspection. What we unearthed was startling: the gas stove, a central piece of the kitchen, was completely unconnected. Further investigation unveiled an even more alarming oversight – the gas line had never been installed to the stove, a critical and potentially hazardous omission. The builder was suprised as well and immediately came back and fixed it, but finding it before the client closed was much easier on them.  

Case 3: Asking the seller to make the repairs isn't always the best idea and always reinspect.

We had a couple recently that made an offer on a home. When the inspector was on the roof he found some leaks and places where the shingles were worn down past their prime. In his opinion, the roof still had a few good years, but it needed some repairs. We requested the seller to make the repairs which they did. We came back to reinspect and found the repairs had partially been done but not completely. The seller said they would get the roofer back out, which they did and we came back to reinspect and still found the job had not been completed. After two unsuccessful re-inspections due to inadequate repairs by the seller, we decided to take a different route. We invited three reputable roofing companies to provide quotes. Subsequently, we negotiated with the seller to credit the buyer at closing for 1/2 the cost of a new roof. The strategy ensured that reliable contractors, trusted by my buyer, would handle the job. Although this process delayed the closing by a week, it was a strategic move. The buyer was reassured that the repairs would be completed to a high standard, the roofer included a warranty for the job which allowed my buyer with peace of mind and the buyer didn't have to wait two years wondering if it was going to leak while they saved the money.

Case 4: Talk to your agent during the intial walkthru you may not even need an inspection if they are experienced:

As a real estate professional with extensive experience in home inspections, I've walked through countless properties, each inspection adding to my depth of understanding. For instance, I remember stepping into a charming, seemingly perfect suburban home with a client. To the untrained eye, everything appeared impeccable. 

Upon examining the basement, I noticed subtle signs of water damage. This observation led us to uncover a history of flooding issues, a critical factor that significantly impacted my client's decision to not move forward. Because I recognized it ahead of time I saved my client the money on the inspection.

This is just one example of how an real estate agents experience in home inspections can be invaluable to the clients. I've learned to spot the telltale signs of potential problems, from foundational issues to hidden mold, that might not be apparent at first glance to electrical panels that have been recalled.

Some Tips:

• The Seller may not know that there is anything wrong with the house, unless they have done an inspection previously so as a buyer go at the negotiations with that in mind first. 
• If the buyer previously owned a home where water leakage caused foundational damage, they are likely to be more attentive to the condition of the foundation in this second property. As a seller, you might have adapted to the foundation's existing state over a decade, but the buyer, wary of repeating past issues, may have several concerns. Addressing these concerns transparently and straightforwardly can effectively alleviate the buyer's anxiety.
• Choose a qualified home inspector. Ensure that the home inspector is licensed and accreditied by reputable organization like the American Society of Home Inspectors (ASHI) Seek recommedations from your real estate agent or friends who have recently bought or sold a home.
• Prioritize major concerns. While minor problems can be noted, it's the major isssue like structural problems, foundation, roof damage, electrical concerns or plumbing issues that should be a primary concern. You also want to look at which issues are urgent and could potentially impact the value or safety of the home. You also want to look at what is most important for you and what you are capable of working on if it comes to it.

Top 5 Questions asked by Buyers

1. Do I need to pay the inspector before closing? Yes most inspectors require payment by the end of the inspection. Most inspectors take credit cards, or you can prepay online.
2. What is the average price of an inspection? $350-$550. Condo's are usually a little less expensive. Price generally go up as the size of the house increases.
3. What does the home inspection include? It typically covers structural elements, roofing, plumbing, electrical systems, HVAC, insulation, and testing the appliances if they are part of the sale. They will also go into the cralspace and check the attic. You can order additional inspection from the inspector for moisture, termites, pests and sewer scopes. 
4. How long does the inspection take? Generally it takes 2.5-3.5 hours
5. Is the home inspector liabile for missed issues:  Typically, inspectors have a liability clause in their contract that you sign, but it’s crucial for buyers to understand the limitations and conditions of the inspection agreement.
6. Bonus Question: If the seller has done an inspection should I do one for myself. YES!!!! the seller hired the first inspector, You want the inspector working for you not the seller. This is not where you cut back to save money.

Don't Leave Your Home to Chance - Schedule Your Inspection Today!"

Ensure peace of mind in your real estate journey. Whether you're buying or selling, a professional home inspection is key to a successful transaction.