What is the purpose of a home inspection?
A home inspection is performed after the buyer and seller have entered into a written contract. It is a review of the home’s condition, including the heating system, attic, foundation and a mold review. The point is to identify any area of the home that needs replacement or repair. This can ultimately set the final price of the purchase.
As a buyer, it is important to know exactly where you stand. You may ask the seller to make some or all of the repairs called out by the inspector, and they may agree to all or some of the things you ask for. Sometimes, instead of making the repairs, the seller may offer to lower the price for an amount that will cover the cost of the buyer taking care of the repairs after the sale is closed.
Even if you are buying a home “sold as is” you will want to know what parts may need attention. You may choose to buy the house and do the repairs yourself, or you may walk away from the property if the costs would be too high for your budget. Your agent will help you keep track of the inspection period, so that you may cancel the transaction with the return of your earnest money if you do so within the number of days stated for your inspection period in your contract.
As a seller it isn’t a bad idea to have a pre-inspection to find out what might show up in an inspection and what the potential buyer will want fixed. Having the inspection and mending trouble spots will re-enforce your asking price and make for a smoother transaction.
If you are not purchasing the home with cash, your bank will require an appraisal. The appraisal should be done after the inspection. It will save the buyer money to have the appraisal done after they are satisfied with the inspection. You don’t want to pay for an appraisal if you are not buying the house!
Courtesy of John Beutler Century 21 Beutler and Associates