Home inspections are not required for the sale of a home. It is something, however, that is very much recommended. Licensed home inspectors can examine every inch of a home in an unbiased, professional manner and make a determination on the condition. This information is very important for a buyer. Depending on the contract, a buyer may use the home inspector’s findings to negotiate a lower price. With the bargaining leverage a home inspection can give a buyer, it is easy to understand why an inspection should be done by a third-party inspector. This ensures a fair and just judgement on the home and its condition. A home inspector is required to be licensed and it takes a fair amount of education to become one because they need to be adept in a number of areas. This month we’ll discuss why home inspections are important for every Lavallette real estate sale.

Why an Appraisal Isn’t Enough

An inspection is different than an appraisal. We covered appraisals a few months ago – you can click here to read that blog.  An appraisal simply evaluates the value of the building and property and is required by a lender. A home inspection looks at the functionality, safety, and condition of all parts of the home. The goal of a home inspection should be to learn as much as possible about the property being purchased. Where an appraisal may compare this home to other homes in the area, an inspection is specific to every home. The simplest way to think of it is that appraisals are concerned with the money and a home inspection is focused on the structure. An appraisal protects the money the lender is loaning. A home inspection can protect a homeowner from potentially making a large financial mistake or from being taken advantage of.

A Home Inspection Typically Happens Late in a Lavallette Real Estate Sale

Occasionally, a seller may choose to have their own home inspection done prior to putting their house on the market. This gives them a good idea of what repairs may need to be made. They then have a few options. First, they can choose to list the house as-is knowing these damages may come into play when negotiating the selling price. Second, they could list the house without any improvements and put an “as-is” clause in the contract releasing them from the responsibility. Third, and on the other hand, they can opt to fix what needs to be fixed and possibly raise the asking price.

This, however, is rare. More commonly, a home inspection takes place as soon as the home is under contract. The timing makes it crucial to review the entire contract closely with your Lavallette real estate agent. Before signing it, it is important to look for fine print or clauses that may release the seller from making any repairs prior to the sale being final. One thing to make sure is there is a “due diligence” contingency. This defines the time period the buyer has to find and contact an inspector, schedule the inspection, receive the inspection, and decide what to do with the information. An average amount of time is usually between one to two weeks.

Final Thoughts on Home Inspections

From a buyer standpoint, there should always be an inspection. Here are a few final key points to take away about home inspections:

• If you are a buyer, when you contact an independent licensed home inspector, make sure it is ok for you to be present during the inspection. This may seem like a waste of time if nothing major is uncovered. But, if there is something that could potentially negate the sale, it is a good idea to see it with your own eyes.
• It is good advice to be wary of sellers willing to offer money off the sale price if the buyer agrees to purchase the property without an inspection. There may be a perfectly innocent reason for this, but this should be considered a red flag and be looked into further.
• An inspection can find things a common homeowner or layman can’t. In addition, there are parts of a home that are almost impossible to view without special tools and safety equipment. Just looking at a house with a naked eye isn’t going to reveal potential issues like a professional home inspection can.
• Not everything about an inspection will be catastrophic. There may be items in the report pointing out things as simple as hot and cold faucets being reversed on a sink. The big things, however, are what are really important.