The Home Inspection
A home inspection should always be stated as a contingency in an offer letter and done after the offer has been accepted by the seller. It is recommended to always have a home inspection done prior to purchasing a home to ensure there are no surprises after the purchase, such as termites, structural / foundation damages, major leaks or plumbing issues, interior and exterior issues, needed roof repair or replacing heating and cooling systems.
Additional Inspection Services
Although it may cost extra and sometimes require a specialist, it is a good idea to get lead testing for homes built before 1978 (lead was banned that year) and asbestos testing for homes built before 1987 (asbestos banned from building materials that year). Water testing and radon testing is also recommended for all homes new or old. Costs can vary so it is a good idea to contact several home inspection companies to get a quote and screen them as to how many years they have been in business and how many homes have they inspected that are similar to the one being purchased. Also check with the Better Business Bureau www.bbb.org to see if there are any major complaints and what the issues were with the company.
Home Inspection Cost
In Boston, a home inspection for a condo with 700 square feet can go for about $300, whereas a single family home with 2,000 square feet in Las Vegas can cost as little as $250 (these costs do not include radon, water, asbestos or lead testing). Some home inspectors take digital photos of problem areas and email them along with their inspection report to their clients within 24 hours and others may give you a copy of the home inspection report immediately after the inspection.
Options After The Home Inspection
- Cancel the purchase of the home due to the findings and unsatisfactory condition of the home
- Accept the home inspection report as is and proceed with finalizing the purchase and sale contract (terms, financing, etc)
- Negotiate with seller on repairing issues, reducing sale price or seeking seller concessions, which is a great way to have the sellers help to pay for repairs or closing costs. Always check with your lender or mortgage broker on seller concession guidelines.
In some cities or states, a home inspection is not an option for the buyer. For example, in many parts of Santa Clara County in California, such as Palo Alto, home inspections have been done by the seller. The home inspection reports are provided to potential buyers prior to drafting an offer. This is not beneficial to the home buyer because he or she cannot use their preferred choice of home inspection companies and are basically purchasing the home as-is unless the seller is willing to make any compromises. This is another reason why working with a buyer's agent is a good idea as they can help you with reviewing the home inspection report and provide you with their opinion of the property.
