The end of the home-buying process, usually when your offer enters into contract, is characterized by a nearly infinite amount of check writing. The multiple necessary costs and closing expenses, including lawyer and realtor fees, may prompt you to find ways to save money elsewhere and persuade you to reconsider the $200 to $500 invoice for a home inspection. Nonetheless, home inspections are one of the most crucial parts of the home-buying process, not only are they an “examination of a real estate property’s condition,” but they provide several added benefits. From predicting the future to an “out”, a home inspection bears several fruits.
Home inspections are usually conducted by a qualified home inspector which assesses the condition of every component of the property, from the roof to electrical work to plumbing to fire and safety issues to the foundation and much more. Not to be confused with a home appraisal, a home inspection will also investigate any evidence of insect, fire or water damage, or any other issues which may affect the property’s value.
A home inspection provides both safety and protection. One of a home inspection’s biggest tasks is to investigate and detect ANY safety issues, issues as serious as mold, carbon monoxide, and radon. Therefore, you should ensure that your home-buying contract states that if any safety hazards are to be found, you could back out of your offer. Home inspections are crucial when buying a home, but they are even more necessary if buying a short sale or an “as is” foreclosed property. Since these properties are usually boarded up, they develop safety hazards such as mold, hazards that threaten your health AND are expensive to get rid of. A home inspection would detect these hazards and help you consider whether to bid on the property.
In addition, home inspections provide an “out.” A home inspection reveals essential information about the condition of a property and its systems, thus warning buyers of what necessary repairs and maintenance the property requires or will require over time. If the home inspection uncovers issues a buyer can’t overlook, it offers the buyer a final opportunity to back out of the offer to buy, potentially saving the buyer thousands.
Moreover, home inspections help predict and possibly prevent issues which may arise in the future. A home inspection can unearth whether rooms, bathrooms, kitchens, garages or basements were constructed or completed without following code or without the proper permits. In that case, if a home has any illegal additions or installations, it affects the taxes, insurance, and value of the property. These illegal installations and systems that aren’t up to code would become the new homeowner’s problem, meaning they become financially responsible for them. Similarly, a home inspection can estimate the installation age of the home’s major systems and necessary equipment, such as plumbing, water heaters, heating and cooling, etc. Since all a property’s components have an approximate “shelf-life,” approximating when they require replacement helps with budgeting and helps determine what insurance or warranties to consider. Correspondingly, some insurance companies may not insure a home without certifications or if specific conditions are revealed.
