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Should I Pay For a Home Inspection?
One of the biggest fears when purchasing a home, spending hundreds of thousands of dollars on something, is that there might be something wrong with it.
Home Inspections and Why It’s Worth The Money
One of the biggest fears when purchasing a home is that there might be something wrong with it.
The bad news is, there’s always at least one thing wrong with every house. The good news is, that everything is fixable. It’s so important to know what’s wrong with the home you want to buy so you can make an informed decision how you want to continue.
What is a home inspection?
When you purchase a home, you have the option to include a home inspection as part of your contract. A professional inspector comes to the home with you and your agent, and inspects all major components of the home you’re trying to buy.
What does it cost?
It depends on the size and age of the home, but plan on it costing you around $300-500.
What do they inspect?
They inspect the site, grounds, exterior, roof, structure, garage, interior, plumbing, electrical, heating and air conditioning, insulation and ventilation, fireplace and stove, and built-in kitchen appliances.
What this tells you?
You’ll get a very large report after the inspection with photos and descriptions of issues in the home. Every house has things wrong with it, so don’t be alarmed.
When you read your report, you’ll decide what items, if any, you want to ask the seller to fix for you. This opens up negotiations again.
What are your options?
You can decide not to buy the house anymore and get your earnest money back.
You ask the seller to fix a list of items.
You don’t ask for anything to be fixed and the “contingency is satisfied.”
What happens next?
The seller has a few responses they can choose from when you ask them to fix things on the house.
They can say, “Yes!”
They can say, “No,” and the contract ends and you get your earnest money back.
They can say, “No, but how about we do this instead?” You can then decide if you like this new plan or not.
Why It’s Important
Most home inspectors focus on the major defects that will cost the buyer a lot of money above the purchase price to repair. Cosmetic items are rarely reported. By bringing these major defects to the buyers attention, the buyer can choose to negotiate with the seller with the intent on getting the major components repaired or a reduction in the selling price.
If the seller can not afford to have the repairs corrected, you can still choose to buy the house with the full knowledge of what repairs are needed and the cost of the repairs will be your responsibility. Or, you may decide the cost of repairs is too much, then you can walk away from the deal and still get your earnest money back provided your contract has a "sale contingent on inspection" clause.
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10 Mistakes Buyers Make
Don’t fall victim to any of these common mistakes.
During a seller’s market, buyers have to be on their A-game. Here are the top 10 mistakes I see buyer’s make.
1. MAKING AN OFFER ON A HOME WITHOUT BEING PRE-APPROVED
Preapproval will make your life easier-so take the time to speak with a lender. Your situation will be different from anyone else, and your communication with a fantastic lender can make or break your financing.
2. NOT HAVING A HOME INSPECTION
Trying to save money today can end up costing you tomorrow. A qualified home inspector will detect issues that most buyers overlook.
3. LIMITING YOUR SEARCH TO OPEN HOUSES, ADS, OR THE INTERNET
Many homes listed in print ads or online have already been sold. Your best resource will be your Realtor and the NWMLS. They have up-to-date information that is unavailable to the general public.
4. CHOOSING A PART-TIME AGENT
Choose a professional who is dedicated to serving your needs before, during, and after the sale. You don't want to have to wait for your Realtor to get off work to go show you houses.
5. THINKING THERE IS ONLY ONE PERFECT HOUSE
Buying a home is a process of elimination, not selection. New properties arrive on the market daily, so keep an open mind.
6. NOT CONSIDERING LONG TERM
It's important to think ahead. Will the home suit your needs 3-5 years from now?
7. NOT EXAMINING INSURANCE ISSUES
Purchase adequate insurance. Advice from an insurance agent can provide you with answers to any concerns you may have.
8. NOT BUYING A HOME WARRANTY
This is essentially a mini insurance policy that usually lasts one year from the close of escrow. It can cover basic repairs you may need.
9. NOT KNOWING TOTAL COSTS INVOLVED
Early in the buying process, ask your lender for an estimate of closing costs. Title company and attorney fees should be considered. HOA fees, hold backs, etc.
10. NOT FOLLOWING THROUGH ON DUE DILIGENCE
Buyers should make a list of any concerns they have relating to issues such as; crime rates, schools, power lines, neighbors, etc. Be diligent so that you can have confidence in your purchase.
Are you ready to take the plunge and buy a home?
Are you contemplating selling your home in the Evergreen State but feeling uncertain about the financial implications? Navigating the true costs of selling your house in Washington can be more complex than you think. Let's demystify the process and delve into both the known and the often-unanticipated expenses that come with selling a property.