A home inspection is an integral part of the home-buying process that many investors fail to consider. Some may think that this is unnecessary, because sellers often provide the inspection report when discussing the deal. However, you should never solely rely on the seller’s comments. If you plan on purchasing a property, you should be conducting your own inspection. A home inspection should be at the top of your house-buying checklist.
Here are some of the things you need to consider.
Home Inspection Contingency
When you make your offer, include an inspection contingency in the contract. After the offer is accepted, this gives you the opportunity to have a third party professional inspector look over the interior, and exterior of the property. An inspector will do a much more thorough inspection than just walking through the property. A typical Inspection Contingency will give you 3-7 days to complete your inspection.
What does this do for you as a buyer? Depending on the contingencies involved, if the inspection report comes back with a lot of issues of concern, you will be able to cancel the deal, and get your deposit back, or you can ask for a reduction in the sales price. Completing a private inspection provides you with in-depth information on the property, and protects your interest.
Have A Standardized Inspection Checklist
Home inspectors do things differently. However, they usually follow a checklist that’s uniform. You are encouraged to attend the inspections, so you can learn more, and maybe gain knowledge for your future deals. Think of this as an opportunity to ask any questions to the inspector with regards to the property’s condition. You can find an extensive list provided by the International Association of Certified Home Inspectors (InterNACHI), which includes everything about inspecting the property from top to bottom.
Understand that your inspector is not there to make any repairs. They’re only there to point out anything that needs some work, or may be a future issue if left unattended. The American Society of Home Inspectors (ASHI) lists some of the things a home inspection covers:
1. The structure’s foundation and basement
2. Plumbing, electrical, heating, and cooling systems
4. Doors and door frames
5. Floors, walls, ceilings
6. The attic and any visible insulation
Sometimes, one inspector can’t cover every aspect of your potential investment property. In cases where a specific house feature may need more intricate attention, your inspector may refer you to a specialist who can look into it.
Review Your Inspection Report
Once the inspection has been completed, a report is given to you with full details about the inspector’s findings. It describes each section of the house, together with a note on whether or not there are repairs needed to make sure it complies with state and local code. For a first-time buyer, you may be baffled by a bunch of terminologies that they use. Some of them are listed below:
- Material defect – an issue that might pose a safety hazard or have an adverse impact on the market value of the property.
- Major defect – a non-working component or system of the house that needs replacement or repair.
- Minor defect – a small issue that can be fixed by a contractor or the homeowner themselves.
- Cosmetic defect – a superficial flaw or blemish that doesn’t impact safety or functionality.
Read the report thoroughly and don’t be afraid to ask your inspector questions about unclear items.
Time To Make Your Decision
At the end of the day, it’s up to you to decide whether you want to proceed with the deal, renegotiate, or walk out of it. Whatever your decision may be, remember that you’re under a limited contingency period to make up your mind.
This may seem overwhelming and too fast paced for first-time home buyers, and experienced home buyers alike. There are many aspects to think about. Rushing through things is very unwise, and a choice you may regret later. Strategy Properties can help you out with all of your investment ventures. We will make sure a home inspection is completed by a reputable and trusted inspector, so you know your investment property is solid. We’ll eliminate all uncertainties, so you won’t have to worry about anything when you purchase your investment property from us. Call now at (734) 224-5454 or send us an email at email@example.com.