Setting Roots

An important part of the home buying process is having an inspection done. Typically, you will have 7-10 business days to have an inspection done once your offer has been accepted. There are several important things you should know about the home inspection.

1. You are entitled to choose your own home inspector. The Real Estate agent may suggest one, but you are NOT obligated to use the one suggested. Choose someone you trust.
2. The seller may have already had an inspection done, but you still have the right to get your own inspection done as well. Do not rely on the inspector that works for the seller, always seek a second opinion.
3. An inspection is NOT an appraisal. The inspector should not tell you what he thinks the home is worth.
4. A good inspector is there just to give you the facts, to find faults, concerns and failures to meet code. He may tell you what needs to be done to correct a deficiency, but a good home inspector should not offer to fix it for you or recommend people to do the work. His job is simply to give you the facts, not refer you to people to correct the deficiencies.

With all that in mind, I would suggest that you accompany the inspector during his inspection. Again, you have the right to be there, and most home inspectors won’t mind having you there or answering your questions. Remember, you get what you pay for, so don’t necessarily rely on the cheapest home inspector. Also, one reason to accompany the home inspector is to trust byt verify. A friend of mine paid $450 for a home inspector to come inspect a prospective purchase. The guy walked through all the rooms, flipped on lights and turned on faucets and said everything was good. Naturally, my friend refused to pay. You want a home inspector to be curious, to dig deep. You WANT the inspector to find faults, so you don’t find them when it is too late… Make sure the inspector tests every electrical outlet, inspects the attic and the roof. If the home you are inspecting includes a pool, be sure that the inspector you choose inspects pools and pool equipment as well.

Finally, remember to take the report with a “grain of salt“. The inspector will find problems with the home. Likely he will find problems that you did not notice… That’s okay. Not all issues are (or should be) deal breakers. You may be willing to over look something minor like a cracked base-board or a leaky faucet. But some thing more serious like improper electrical wiring, or termites should give you pause. If it is correctable, you may ask the seller to have it fixed before you close on the house, or you may decide to call off the deal altogether. Make sure, that when you decide you want to bid on house that you have not “fallen in love with it” to the point that you are willing to over look major defects, shoddy craftsmanship or other problems, because once you buy the home, those problems become YOUR problems.

Tragic Mistake #1: Thinking you can’t afford it. Today, buying the home of your dreams is easier than ever before. Many people who thought that buying the home they wanted was simply out of their reach are now enjoying a new lifestyle in their very own new home. Buying a home is the smartest financial decision you will ever make. In fact, most American and Canadian home owners would be financially broke at retirement if it wasn’t for one saving grace – the equity in their home. Furthermore, mortgage rates are more flexible today than ever and tax allowances favor home ownership. Real estate values have always risen steadily. Of course there are peaks and valleys, but the long term the trend is a consistent increase. This means that every month when you make a mortgage payment the amount that you owe on the home goes down and the value typically increases. This owe less-worth more situation is called equity build-up and is the reason you can’t afford not to buy. Even if you have little money for a down payment or credit problems, chances are that you can still buy that new home. It just comes down to knowing the right strategies, and working with the right people. See below.

Tragic Mistake #2: Not hiring a buyer’s agent to represent you. Buying property is a complex and stressful task. In fact, it is often the biggest single investment you will make in your lifetime. At the same time, real estate transactions have become increasingly complicated. New technology, laws, procedures and competition from other buyers require buyer agents to perform at an ever-increasing level of professionalism. For many homebuyers, the process turns into a terrible, stressful ordeal. In addition, making the wrong decisions can end up costing you thousands of dollars. It does not have to be this way! Work with a buyer’s agent who has a keen understanding of the real estate business and who is on your side. Buyer’s agents have a fiduciary duty to you. That means they are loyal to only you and are obligated to look out for your best interests. Buyer’s agents can help you find the best home, the best lender and the best inspector. Best of all, in most cases, the buyer’s agent is paid out of the seller’s commission, even though he/she works for you.

Tragic Mistake #3: Getting a cheap inspection. Again, buying a home is probably the most expensive purchase you will ever make. This is no time to shop for a cheap inspection. The cost of a home inspection is very small relative to the home being inspected. The additional cost of hiring a certified inspector is almost insignificant. As a homebuyer, you have recently been crunching the numbers, negotiating offers, adding up closing costs, shopping for mortgages and trying to get the best deals. Do not stop now. Do not let your real estate agent, a patty-cake inspector or anyone else talk you into skimping here. Ask the inspector what certifications he has and what proffessional organizations he is a part of. Remember that education and training isn’t cheap, so getting a well-qualified inspector won’t be either. Additionally, there is no monetary value that can be placed on experience, but clearly a more experienced inspector will likely provide you with better service. Do yourself a favor…and pay a little more for the quality inspection you deserve.