The Real Story …
News and commentary about the real estate market and related topics.
Dave Parrish, ABR ®, CRSA, CSP, GRI, ePRO ®, REALTOR ®, RealtySouth
An ounce of prevention … worth a pound of cure.
It makes sense doesn’t it that you would inspect a property before you buy. Yet, when it come right down to it many buyers don’t really understand how very important this step is and how it is used in the purchase process, what it includes and doesn’t include, who should do it, etc. So, here’s the Who, What, Why, Where and When of Home Inspections.
First of all a reminder: Caveat Emptor (Buyer Beware). Hope you read my article several weeks back about Caveat Emptor … But just in case you missed it, here is a quick summary: Alabama is a modified Caveat Emptor State. This means that except for health and safety issues it is the responsibility and duty of the buyer of real property to determine the fitness and suitability of a property before they purchase it … No ands, ifs or buts!
What: A home inspection is an opportunity to make a through physical examination of a property to exercise many of its components and systems to determine the overall condition of the property both inside and outside. I rarely write an offer to purchase for my clients without requiring a home inspection and making the contract’s execution contingent on an acceptable result or acceptable remediation of issues of importance to the buyer.
No home is perfect. Every home will have issues on a home inspection.
Home inspection reports do not describe the condition of every component if it’s in excellent shape; but, they should note every item that is defective or needing service. The serious problems include:
· Health and safety issues
· Roofs with a short life expectancy
· Furnace / A/C malfunctions
· Foundation deficiencies
· Moisture / drainage issues
Realize however that there are also things that the Home Inspection will not cover, such as:
· Asbestos
· Lead
· Radon, Methane, Radiation and Formaldehyde
· Mold, Mildew and Fungi
· Wood-Destroying Organisms
· Rodents
· Sewer or septic system inspection
You might want to have additional specific inspections performed as well. But remember time is of the essence and you will have to pay for each of those inspections even if you elect not to buy the property!
When: Generally, the buyer has a defined time frame or window in which to make a home inspection and submit a requests for remediation (problem/issue resolution). This window is usually in the range of 5-10 days with specific defined periods following the inspection for both the Buyer and Seller to negotiate remediation of items of concern to the Buyer. Failure to comply with these time periods in effect nullifies the benefits guaranteed by the home inspection contingency. Therefore, once an offer is accepted … the home inspection usually becomes the very first order of business.
Who: Home inspections aren’t free and Sellers will rarely allow their inclusion in the costs that they agree to pay at closing. Consequently, buyers are frequently tempted to perform them personally or to have a friend or relative perform them. This is almost always a mistake. The inspection is best performed by a licensed home inspection professional, an independent third party working for the buyer’s interests that thoroughly understands the process and whose job it is to act in a timely professional manner.
The Buyer’s Agent will normally provide the buyer with a list of qualified Home Inspectors from which to choose; but, they should not and will not recommend a single specific inspector. Likewise, except for providing entry to the property, agents are rarely present for the home inspection to insure that the inspection is not influenced by them. Remember this is to be a fair and independent inspection.
However, the Buyer should be present at least for the last part of the inspection to review with the inspector particular issues of concern revealed by the inspection. Being present for the entire inspection is generally not a good idea, as it could well interfere with the normal methodological process that the inspector follows and therefore contribute to something being overlooked. But each home inspector is different and will advise you as to how their process works.
Where: This is the easy one … At the home to be inspected!
How: The inspector will have a defined process that they follow for the inspection and will generally take photographs of problem areas. It is common for the inspector to request the buyer to meet with them on site toward the end of the time they have set aside for the inspection to review their findings and perhaps to physically show the buyer items of concern. A detailed written report is usually provided to the purchaser within 24 hours. From which the buyer makes a decision about repair requests to be presented to the Seller.
So Then What? It has been said many times … No home is perfect. At the same time Sellers don’t want to make repairs. However, only you can decide what is important to you in making your final decision to proceed. So you will have to make some choices about what you request be addressed. Understand that Seller is not required to make any of these corrections; nor, if you act within the time frames specified by your sales contract, are you obligated to buy a house that doesn’t meet your needs based on the results of the home inspection. So what items are addressed and how they are addressed are often negotiated.
Remember it is the Buyer’s responsibility and duty to determine that the home is fit for their needs. Be safe… Get a Home Inspection!
