Home Inspections
Part II of our Mini-Series on the key items buyers need to know when closing a transaction for a home or property on Lake Martin.
By: Adam Yager, Realtor® – Lake Martin Realty
First and foremost, let’s break it down with this question: What is the purpose of a home inspection in a real estate transaction? Let’s stay on track with my normal theme and keep it simple. Here we go.
- “The purpose of a home inspection is to provide the home purchaser with extensive detail about the home’s condition, both structural and mechanical, in order that the purchaser may make an informed decision on the purchase of the home.” This is a complete “look under the hood” of the property condition that allows a buyer to gain near equal to the seller’s knowledge about the condition of the home so that you, the purchaser, can make an informed purchase decision. THE END. Some buyers tend to over-complicate this.
Here is how I as an agent look at the home inspection process. You have just made an offer on a lake home you desire. Congrats. Now comes the “nitty-gritty” part of the transaction. If you are about to pay this much money for a home, you want it to be in good condition and you want to get what you are paying for! Your dang right… you will not catch me purchasing a home for $200,000 + and not know EXACTLY what condition the property is in and/or if it will be worth my HARD EARNED money.
As a buyer, you want the home inspector to work for YOU. Go ahead and wipe away any bias. The inspector does NOT work for the seller. This is for YOUR protection. Go over the list of recommendations that your agent will give you. (I always give at least 3 recommendations and ask my clients to call at least those 3 to get pricing and see who they feel more comfortable with). If at all possible, make an attempt to attend the home inspection. Again, only if this is possible. You can save yourself a lot of time here asking the home inspector questions that you may have on the spot. (BTW, agents are NOT allowed to attend the home inspection – that goes for both the buyer’s and the seller’s agent).
How much is a Home Inspection? Cost is typically driven by the square footage. You don’t necessarily want to hire the cheapest inspector- remember, you get what you pay for. This is an important investment and you will want to have it properly inspected.
Inspection Time
When it comes to home inspections, always refer back to that timeless phrase we all know that goes something like, “pick your battles.”. There are only so many items that a seller will be willing to fix at his/her expense and by the way… don’t forget that selling a home has its fair share of expenses already. That being said, have a subjective view at this point.
Of course, there are those repairs such as HVAC, electrical, plumbing, mold, structural, roof, etc. that should be fixed by the seller at THEIR expense. At the time you make an offer, it is still their property and therefore they are responsible for its own up-keep (at least in an ideal situation that is the case). Those are the serious issues that must be fixed and up to code for the purchase of any home, regardless of how much it cost or who you are.
Home inspectors may not find everything that is wrong with the property or feel that they are qualified to address every issue. You can then take this a step further by calling in third parties (i.e. septic inspectors, structural engineers, HVAC contractor, etc.).
One more time, let us revisit our definition of a home inspection one more time just to make sure we are still on the right path: “The purpose of a home inspection is to provide the home purchaser will extensive detail about the home’s condition, both structural and mechanical, in order that the purchaser may make an informed decision on the purchase of the home.”
As a buyer, do not lose sight of this. The home inspection, again, is looking for those severe structural or mechanical defects and a general “look under the hood”. This is not for you, the purchaser, to make a list of every door knob that is slightly lose and have the seller walk around with a screw-driver in-hand for 2 hours making sure all the doorknobs are tight. If you do this, you are likely going to make your seller have ill feelings towards your offer. Not to mention, if this is a re-sale property, you are NOT buying a NEW home. There will be things wrong with it. That is just how it is.
Let your agent guide you through this process. Most agents work very well with one another and the listing agent can give insight as to the amount of work the seller is willing to do. Your agent should scope out the “vibe” as I like to say and be able to provide you with what it is going to take for you to get this transaction to close and get you in your desired lake home.
As an agent, here is my shortened guide to what you, the purchaser, should deem “reasonable” on the request to the seller after the home inspection. For this Buyer’s Series, we are going to ASSUME that the listing agent has advised the seller to the best of their ability on those items that should be repaired or “spruced-up” before the home goes on the market and the seller has acted on these recommendations to the best of their ability and their budget. I am doing this for simplicity. Otherwise, I could make this article 15 pages long on the “what if’s” on the part of the seller and buyer in this part of the negotiation.
What to avoid in your request to the seller:
- Minor Cosmetic Issues
- That deck that needs staining or a small crack in the tile in the master bathroom is not an immediate issue. These can be fixed without a large expense outlay. Leave it out of your request.
- Even if the items are a bit more expensive to fix or “spruce-up”, really consider what you are willing to overlook. Be flexible is what I am saying. You could find yourself in a multiple offer situation. In that case, you have to be competitive. I call this making a “clean offer.”
- Anything under $100
- If it is under $100 to repair, is it really worth making that request that could potentially lead the seller to accept another offer if there is one on the table? Don’t let those few loose boards on the boat dock cloud your judgment.
- Renovations
- It is not the seller’s job to pay for the way you want the home to be after you complete the purchase and take possession. Keep this in mind.
- Minor Landscaping issues
- Loose fixtures, railing, and similar issues.
Items that should be addressed and/or repaired if found on the final home inspection report:
- Termites or other wood destroying insects.
- Wildlife infestation like bats or squirrels in the attic.
- Major drainage or on-going water problems.
- Mold problems.
- Major electrical defects that cause safety issues.
- Significant plumbing problems that interfere with the use of the home.
- Lead paint. It should be noted that it is a federal requirement for sellers to disclose the known presence of lead paint in a property.
- Well water problems, such as a lack of pressure or volume of water.
- Major structural issues such as a leaking roof or substandard building violations.
- Any issue that has cost associated with it that when added to the purchase price raises the effective acquisitions costs above fair market value.
After the home inspection is complete and the finalized report that is signed by the licensed home inspector is in your hand, here are your next moves:
- Review report thoroughly.
- Make a list of reasonable requests that you as the buyer would like to have fixed.
- Refer back to the contract or purchase agreement on how many days you have to get your list and the finalized home inspection report back to the seller for review.
In addition to this, a purchaser can request – if not offered by the seller – that the seller fill out a property disclosure form (provided by a quality buyer’s agent) to get disclosure on major repair dates and conditions that a home inspector might find.
In summary, if you are a buyer in the midst of negotiating a home inspection, be reasonable. Remember, the “cleaner” the offer, the more likely the transaction will make it to closing.
Check this link for other home inspection tips. https://www.familyhandyman.com/smart-homeowner/tips-for-getting-the-most-out-of-a-home-inspection/view-all/
As always, it can never hurt to have a good agent by your side as your team member and advocate. I would love nothing more than to be an advocate for you.
Have a blessed week!
-Adam
