March 10, 2008

Tips for Home Buyers: The Home Inspection

Dum, dum, dum… the home inspection. Perhaps the most feared by all buyers (and sellers!). What shines from the front may turn out to be bundle of problems when you open the hood. Here are some tips to help you navigate through the home inspection process:

You’re inspection is only as good as your inspector. Make sure to get a reputable inspector. Here’s not the place to cut costs. A good inspector will be able to charge a pretty penny for his (or her!) services. Go to Independent Home Inspectors of North America for fee information. Get a reference from a friend, co-worker, or agent. Or, check with professional organizations for home inspectors, such as National Association of Home Inspectors, Inc. (NAHI).

Expect the worse. Go into the inspection expecting to find mold, termites, cracked foundation, aluminum wiring, and anything else that raises major red flags for you. Think about these potential hazards before going to your inspection. If you find mold, is it a deal breaker? If you find termites, is it a deal breaker? If you find… you get the idea. Knowing what you’re willing to fix and not fix is important to think about before your faced with the papers to release the inspection hold for escrow.

There is no such thing as a dumb question. Are you a home inspector? Probably not, so don’t be embarrassed by asking what you may think are “dumb” questions. No, not everyone knows what a GFCI is… but if the inspector says that the kitchen needs one and doesn’t have it, you should ask (1) what is it, (2) why do you need one, and (3) how much does it cost to buy and install? Let’s say you’re a florist and an inspector comes into your store to buy a bouquet. Do you expect him to know all of the flower names, what kind of temperature they thrive at, and how much they should cost? No… but you’d answer any question he has and help him pick out a beautiful bouquet. Same is true for home inspectors. This is their job, and you’re paying them for it… and part of their job is to answer your questions.

Make a date with the hardware store. After you get your inspection report, write a list of everything you’d like to fix. Then, take this list to the hardware store and price it out. If you don’t go on the weekend, chances are you can find an experienced soul to walk you through what you’re up against. This exercise will give you perspective on how much you’ll looking at to make this home how you really want it. The little things do add up, you’d be surprised.

Listen to yourself, after everyone else. Your agent wants his/her money, and while there are many agents who always do the right thing, some may downplay the severity of something just to get on with the process. Your inspector is a valued asset… listen to everything he/she has to say. Even listen to the guys/gals at the hardware store. However, ultimately, listen to yourself. Your gut will tell you whether that mold problem is a big deal or not. Remember that it’s just not the problem itself, but how you view the problem. If holes in the wall seem harmless to you, then fine. But, if they really upset you, ask yourself if you’re willing to fix it and is it worth the stress?

Treat others as you wish to be treated. From your inspection, you may identify things that are not up to code, major hazards, and other items you want fixed. Of course those things not up to code and major hazards should be fixed by the seller (or credit given to you to fix). However, what about all the other stuff. You have a few choices: (1) ask for the moon and the stars and everything to be fixed/credited, (2) ask for a few most important items to be fixed/credited, or (3) let it go and get on with it. There’s a lot you want to take into account — relationship with seller (potential for retaliation if they become upset), concern for quality of work (you might want to fix it over the sellers doing a quick-and-dirty fix), and time (your lease might be up in a few days!). How do you navigate through this sticky web? It’s simple: Put yourself in the sellers shoes and think about what is fair and reasonable. Would you be outraged if someone asked you to fix something?