The purchase of a home is for most people, the single largest financial transaction they will make in their lifetime. When purchasing a resale home, the home inspection process is vitally important. Done thoroughly, it will identify items typically deemed cosmetic, minor issues and potentially majorproblems that should be considered before going forward with a purchase.
Resale Homes
First and foremost, the time to fully consider home inspection on a resale home purchase is before signing a sales and purchase contract for the home. Whether using a licensed realtor or purchasing directly from an owner, a written contract is normally required. Within the contract, there is usually a section specifically devoted to home inspection, financial limits established in either absolute dollar terms or as a percentage of purchase price. While printed and seemingly fixed, they are subject to negotiation via an amendment to the contract. They are meant to protect both the buyer and seller. The buyer wishes to protect themselves from costly repairs and the seller wishes to protect themselves from buyers requesting repairs or replacements without regard to cost.
Once you have found the home of your dreams and before sitting down to write a contract, do your own personal inspection preferably with the help of your realtor and without the owner present if possible. Set aside 30 to 60 minutes to walk through the house and bring a notepad. Inspecting a vacant house is far easier and quicker than a fully furnished home crammed with belongings.
What to look for?Firstly bring your critical eye and if not part of your nature, try to arrange someone to accompany you that does have a eye for quality and faults. First time home buyers are typically at a disadvantage as they just don’t know where to even start or may minimize the magnitude of home construction problems. Prideful, they may not want to ask their parents for help or anyone else.However putting pride aside may help avoid a very costly mistake downstream!
The kitchen…check for leaks under the sink; look at the caulking around the sink and back splash; check all cabinet doors and drawers for alignment/damage; open the dishwasher and check for leaks and general condition; open the refrigerator and check for general condition; check kitchen windows for fogging and check window screens for tears or misalignment; check flooring for broken tiles and/or cracked vinyl.
The bathrooms…check for leaks under sinks; check for caulking around sink and back splash; check the shower/tub tile grouting for cracks and broken tiles; check floor for cracked tiles or lifted vinyl; check exhaust fans for excessive noise;
Other rooms…check the condition of the carpeting or flooring looking for stains and/or damage; check for windows for fogging and screens needing repair/replacement; check the walls for nail pops and/or damage. Check the condition of fireplaces and wood stoves.
Heating/Air Conditioning…check the vents in each room for any condensation stains, check the general condition and age of the furnace or heat pump equipment inside and outside units; check the general condition and age of the hot water heater.
Exterior…check the age and general condition of the roof tiles or shingles looking for damage or material breakdown; check the condition of eaves and overhangs; check the condition of rain spouts and gutters; check the condition of exterior walls for cracks in stucco, damage to vinyl siding or siding irregularities; check for any broken windows or screen damage; check sliding glass doors and screens for damage; check condition of driveway for cracks; check condition of sidewalks for cracks;
Landscape…check general condition of lawn/sod; check for presence of lawn irrigation system; check trees for general health; check fencing for needed repairs; check for any drainage problems; check for overgrown landscaping; tree overhangs etc.
Having done your “homework” now what? Armed with your notes, you can sit down with your realtor and consider your cursory findings and make a determination of the severity of what has been found and approximate the cost to repair and/or replace deficient items. While the homebuyer may lack experience to make an estimate, when working with a seasoned realtor, they will or will know where to go to get the answer.
The next step will be to divide your list into cosmetic and low cost to repair items generally under $200; more costly repairs/replacements generally over $500 and major repairs/replacements generally over $1,000. With these estimates, you can now consider what you want the seller to repair and/or replace and place an amount into the contract for repairs/replacement. Within an addendum, you can specify items to be repaired/replaced both within the estimate and/or as part of the purchase price.
Your realtor can now incorporate the repair items/costs into the contract to be presented to the seller to accept, counter-offer or decline. The contract should already have a home inspection clause with provisions for a professional home inspection and causes of action depending on the home inspection report. The contract should also incorporate a clause that allows for voiding the contract if the home inspection findings are unacceptable to the buyer or the seller is unwilling or unable to make necessary repairs or replacements. Once a contract is accepted, then obtaining a home inspection by a reputable inspector or Professional Engineer is the next step. Once the report is received from the Home Inspector, findings will be provided to the seller along with a written request for items requiring repairs/replacement. Remember, at this stage, the outcome will be determined by the wording and provisions already incorporated in the contract.
