With a Competitive Market, More Buyers Are Skipping Home Inspections
It’s easy to get swept up in the excitement of buying a new home. It’s even easier to forget to make the important decision to have a home inspection once under contract. Or, something that is increasingly occurring, skipping home inspections altogether. This is done to be more competitive in bidding wars in this sellers market.
Home inspections are an instrumental part of the homebuying process. They can save you a lot of time and money in the long run. Which is why if you’re purchasing an “AS IS” property, you should request an “Information Only” inspection. This will help you be better prepared and able to plan for the future.
Also, remember that a home appraisal and a home inspection are not the same thing. Appraisals will not provide you with a detailed look at a property that can help uncover deep-rooted problems and potential pitfalls. Appraisal’s are also being waived to be more competitive.
First Time Homebuyers Left With Disaster Home After Skipping The Inspection.
Florida’s Tampa Bay ABC Action News shared the following story in 2017: First time home buyer Jacob Pinder’s experience after skipping the home inspection.
In the above report, Jacob describes the aftermath of skipping home inspections as devastating. Jacob & his fiancé Amy bought into the Zillow ad that touted the home as move-in ready and well maintained. But after moving in, Jacob explains how they discovered extensive damage behind walls and under the home’s outside trim. Now the couple is suffering the consequences for buying a home as-is without an inspection. They fear being homeless as there is no money for extensive repairs.
FIVE RESONS TO HAVE A HOME INSPECTION:
Don’t Judge a Home by Its Façade
Especially for those buying newer construction, a home inspection may feel like a waste of money. No matter the age of the home, there can be costly troubles unknown to the average buyer. Problems with wiring, plumbing or structural issues may not be visible during a showing. Even before you get to the interior, you can do your own preliminary inspection. Simply walk around the home’s exterior and look for these four potential problems:
Rotten / Damaged Siding;
Water Pooling Around the House;
Broken Gutters; &,
Peeling Paint.
Save Money
Home inspection costs vary but a good rule of thumb would be to expect to pay from $300 to $500 depending on size and age of the home. That’s a good sum, but perhaps think of it this way: Those who skip out on the expense may realize in a few years that an inspection is much cheaper than rewiring the entire house.
Negotiate
One of the advantages of having a home inspection performed before you buy is the power it might give you to negotiate a lower price. If a home you’re really interested in is on the edge of your price range, information gathered during the home inspection may give you the bargaining power to talk down the price. You can also insert language into a purchase contract that allows you to back out of an agreement if the inspection turns up problems.
Seller’s Repairs
Not only are you able to negotiate a lower price, many buyers include clauses in their contract requiring the seller to make the repairs necessary before any money is exchanged. If the seller is unwilling to complete the repairs, estimate the cost and ask them to take that amount off the total. Solid facts about the quality and condition of the home can give you valuable bargaining power.
Remember that a seller’s repairs are not eligible to be included in seller concessions. VA guidelines allow the value of seller concessions to equal up to 4 percent of the selling price, but that 4 percent comes is in addition to any negotiated repairs. Learn more about seller concessions here.
Know What You’re Buying
In the end the most important reason to have a home inspection before you buy is to really know what you’re buying. Research your potential home like you would any other major purchase. The more you know, the fewer surprises there will be down the road. Home inspectors can help you make a decision based on your current budget as well as your future time and money investment.
Your home is your biggest investment. Build a team of experienced realtors, inspectors, & lenders to help guide you through the homebuying process.
Action List Widget
The Action List widget is a simple tool that saves realtors & clients time & makes it easy to create the list of request items as part of the negotiation process with the seller.
The link is generated when the report is sent out to the client & their agent.
Build a Team to find your Dream
Buying a home is a very rewarding & exciting time, but it is also a very vulnerable time. That’s why it’s important to build a team made up of professionals whose primary focus & goal is to aid clients in making one of the largest decisions in their lives.
Being part of a home-buyers “Real Estate Procurement Team” (made up of the Realtor, Lender, Home Inspector, Insurer, Title/Settlement Company, etc.) has been an honor throughout my career. First as a builder, then a Home Inspector, & most recently as a HUD Renovation Consultant. But, I’ve also been on the other side of the table as the home buyer, & more recently as the father of a home buyer, & have experienced the emotional spectrum (follow thislinkto a funny article about that) our clients & their families are going through.
While there are stresses found in every aspect of real estate, from start to finish, there are also many joys. When I ask lenders, realtors, settlement clerks, insurance agents, appraisers, (etc.) what they find most rewarding about being in real estate, the answer more often than not is “helping people accomplish their dreams“. From my own experience as a Superintendent with Camberley Homes, as a HUD Consultant, & as a Home Inspector – I couldn’t agree more.
In my previous life as a Senior Builder / Superintendent with Camberley Homes, I always looked forward to the New Home Orientation / Homeowner Walk Through. As the superintendent, I was there with the clients as they created their selection sheets and a 2D representation of their future home was put together. After months of construction & working together through the stresses of building a new home, the project was finally complete, & we could breath. The N.H.O. is the day that I got to showcase all of the efforts of the building team to create the clients dream home.
Typically, a Home Inspectors encourage the buyer, & anyone they wish to include, at the home inspection so that they can be part of the inspection, asking any questions they may have. But, as we all realize, there is nothing typical about the Coronavirus (COVID-19) pandemic.
This is why we are encouraging our clients & realtors to take advantage of our POST INSPECTION VIDEO / PHONE CONFERENCE service. Don’t get us wrong, we still want you to be engaged in the inspection process – just 6ft away or maybe at your home (LOL).
HOW DOES IT WORK?
While still at the property, we will call the client & realtor to do a video or phone “walk through” of the house & show them our findings. This allows the client to ask any questions & voice any concerns while the inspector is still at the property. If either party is unable to do this, they can contact us later that day, after having reviewed the report, to ask any questions.
Click on the LINK to an example of our inspector pointing out a shadow in the ceiling, its cause, & an easy means of fixing it.
REAL ESTATE TRANSACTIONS ARE ESSENTIAL
Throughout our nation & the world, many “non-essential” businesses & events are being
Real Estate transactions are still & will continue to be an essential aspect of everyday life – they’ll just be a little different than what we’re used to. Each individual being aware of & taking the necessary precautionary measures helps to lower the risk factors to the other person, and their loved ones.
COVID-19 SAFETY PRECAUTIONS
At Secure Home Inspections, LLC., we are making every effort to help prevent the spread of the COVID-19 & we understand that our employees & company policies can play an important part in this effort.
Knowing that real-estate transactions will still go on, we are offering to do a POST INSPECTION VIDEO / PHONE CONFERENCE. While still at the property, we will call the client & realtor to do a video or phone walk through of the house & show them our findings. This allows the client to ask any questions & voice any concerns while the inspector is still at the property. Otherwise, the client & realtor may contact the inspector after having received the report later that day.
Together, we can take actions to keep everyone safer. As Matthew McConaughey’s message of hope & positivity said “Let’s do our due diligence, take the precautions we need to take care of ourselves and those around us.”
Thinking of Skipping the Home Inspection?
Buying a home is a very stressful time & will be one of the largest financial decisions you make. There are a lot of costs involved in purchasing the home which take some homeowners by surprise(i.e. closing costs, insurance fee’s, broker fee’s, inspections, etc.). A lot of buyers find themselves thinking of skipping the home inspection, but there are tons of articles out there on why NOT to skip the home inspection. Here are just some statements made by industry leaders:
Amy Fontinelle with Investopediastates that “Home inspections are used to provide an opportunity for a buyer to identify any major issues with a home prior to closing. Your first clue that a home inspection is important is that it can be used as a contingency in your contract with the seller. This contingency provides that if significant defects are revealed by a home inspection, you can back out of your purchase offer, free of penalty, within a certain time frame. The potential problems a home can have must be pretty serious if they could allow you to walk away from such a significant contract.”
James Shea with Homes.com lists a few reasons why a home buyer doesn’t want to skip a home inspection:
Unseen & Unpredicted Problems being pointed out by an unbiased professional;
More Options with regards to negotiations, etc.;
Cost Efficiency as “a quality home inspection can keep you from having to pay tens of thousands of dollars in repair costs”.;
Being able to identify potential Structural Problems;
Signs of current or potential roof Leaks;
Identifying issues which affect the Safety & Soundness of the home;
Being able to plan ahead for future Maintenance Costs;
Gaining Negotiation Leverage; and,
Knowing the condition of the home provides Peace of Mind.
Ashley Eneriz of Wise Bread, Living on a Small Budgetdiscusses how getting the home inspection can potentially save you thousands of dollars. Ashley relates stories of concerns related to “Not Taking the Seller’s Word“, being able to “Prepare for Future Costs“, and cautions against taking “Bribes to Skip the Inspection“. There are also tips on what to look for in a Home Inspector and weather or not you should be present for the Home Inspection.
Please take a moment to do your own search & read what the results are.
The National Association of Realtors – a Great Resource for Home-buyers
Home-buyers need every tool at their disposal to understand the labyrinth of Residential Real Estate. One tool we gain a lot of information from is the National Association of Realtors “Realtor Magazine”. Have a Question? Use their search bar to locate informative articles or just review their “Daily News Articles” where you will find articles such as these:
Realtors & their associations are advocates for the right to own, use, & transfer real property. Meaning, they are YOURadvocates for home-ownership.
Home Inspection & Radon Testing Contingency
DON’T SHOP PRICE, SHOP EXPERIENCE!!!!
You’ve finally found the home of your dreams & can see a light at the end of the tunnel. But now you find out that you have a 7 Day Home Inspection & Radon Testing Contingency period & need to hire an inspector ASAP!!!!
One of the BIGGEST MISTAKES you could make when choosing an inspector is to focus in on the cost of the inspection. Don’t just assume that all home inspectors are equal!! There are a lot of moving parts to purchasing a home. It can be timely, costly, and frustrating – BUT, remember this is one of the largest purchases of your life, so it’s to be expected. Take advantage of the Home Inspection & Radon Testing Contingency as not only a negotiation tool to ask for repairs or credits, but as an introduction to your new home.
So, before you start making those phone calls to choose your inspector, we wanted to give you two examples of phone calls we receive:
Realize that during this process, you’ve actually been assembling a Home Purchasing Team that can help you navigate through the labyrinth.
Typically, a Home Inspectors encourage the buyer, & anyone they wish to include, at the home inspection so that they can be part of the inspection, asking any questions they may have. But, as we all realize, there is nothing typical about the Coronavirus (COVID-19) pandemic.
