Home Buying 101: The Importance of the Home Inspection

What Does a Home Inspector Do?

In short, an inspector checks the safety and functionality of your potential
home. Inspectors focus primarily on the structural and mechanical aspects of the
home.

Get a home inspection as soon as possible after the sellers accept your
offer. Make the contract contingent upon the home inspection. That way, if the
inspection uncovers a major flaw that you’re unwilling to accept, you have a
legal way out of the contract.

Don’t confuse the home inspection with the home appraisal. The home
appraisal protects the lender’s financial interests. The home inspection
protects you, the buyer. The appraisal is the bank’s way of determining
whether or not the house is worth the price you’ve agreed to pay. The
inspection is your way of identifying structural or mechanical problems with the
house.

How to find a home inspector:

• Ask a friend or coworker who has recently bought a home in the area.
  
• Ask your agent if he or she can recommend a qualified inspector.
  
• Visit the American Society of Home Inspectors website: www.ashi.org.
  
• Visit the National Association of Home Inspectors website: www.nahi.org.

Is a Home Inspection Worth the Price?

Consider this. Home inspections usually run between $200 and $400. Weigh that
small cost against the comfort of moving into a known situation, and the answer
is obvious ... get a home inspection!

The List

Your home inspector will go through your home with a fine-toothed comb. So be
present for the inspection – you’ll learn a lot. Afterward, the inspector
will make a list of discrepancies. Some items won’t be a big deal to you, but
it’s still the inspector’s job to point them out. But other items will be
more serious, and these are the items you should discuss with your agent.

Who’s Fixing What?

When you review the inspector’s list with your agent, you’ll have to
decide which items (if any) you want the sellers to repair. Like nearly
everything else in the home-buying process, the fix-it list is negotiable. When
you submit your list of requested repairs to the sellers, you face one of
several outcomes:

1. The seller will agree to fix all of the items.

2. The seller will agree to fix some of the items.

3. The seller won’t agree to fix any of the items.

4. The seller will reduce the price in lieu of certain repairs.

How you proceed in light of the seller’s response is up to you and your
agent. A good rule of thumb -- don’t ever turn a blind eye to a major repair
issue just because you’re excited about getting in the house. If you’re an
experienced investor and you’re buying the house specifically to fix it up,
that’s one thing. But if you’re buying your first home, be conservative and
carefully consider each item on the inspector’s list. It will benefit you in
the long run.

Summary

Hire an inspector to review your prospective new home for potential problems.
The peace of mind you’ll get is well worth the cost you’ll pay. Review the
inspector’s list with your agent and carefully consider each item on the list.
Consider your ability (or inability) to make the repairs yourself, vice having
the sellers repair them.

About the Author

Brandon Cornett is the editor of HomeBuyingInstitute.com, one of the
Internet's largest and most respected libraries of home
buying information -- more than 100 expert articles in 12 different home
buying categories! Put this knowledge to use by visiting http://www.HomeBuyingInstitute.com