How to Make the Most of a Home Inspection Before You Buy

November 27th, 2019 | Purchasing a Home, Mortgage Advice

An inspection examines a home’s condition and possible repairs. It is different from an appraisal, which a mortgage lender generally requires to estimate the property’s value. An appraisal does not replace an independent inspection. See the CFPB’s inspection guidance.

Find a Trusted Inspector

Employing a qualified, professional inspector is key to getting a thorough examination of your soon-to-be home. Your real estate agent will probably have a few suggestions of inspectors to use. She or he goes to home inspections regularly and knows which inspectors know their stuff. If for some reason you don’t want to go with your agent’s pick, ask friends and co-workers for referrals. There is a more peace of mind choosing someone who has been highly recommended than by just choosing a company at random.

Be On-site for the Inspection

You should plan to be at the property during the home inspection. It will last anywhere from an hour and a half to three hours based on the size of the home, but taking that time is crucial to seeing first-hand any problems. Even if your inspector does not want you following him around the whole time, you can be there to ask him any questions you have at the end. He or she can walk you through discovered issues, like leaks, electrical problems, plumbing or HVAC snags. He or she can also point out potential or looming trouble, like landscaping root issues or aging roof tiles.

Ask for Contractor Recommendations

Once your inspection is complete, you can ask your inspector or your real estate agent to recommend good contractors to fix any problems that were turned up. In some cases, you may want to have the seller fix issues before the sale is final, but if not, it’s helpful to have a list of professionals you can contact.

Use Your Inspection to Negotiate

Armed with a list of major or minor home issues, you can go back to the seller and ask for repairs or you can negotiate for a lower home price.  You can even ask for money back at the mortgage closing in order for you to have the repairs done. Your agent can help you know what to expect out of these negotiations and how much you can reasonably ask for.

If the inspection reveals serious problems, such as foundation issues or extensive mold, discuss the findings with your agent and review the inspection contingency and deadlines in your purchase contract before deciding whether to negotiate or withdraw.

A home inspection is your best protection to ensure that you are getting a home free of expensive surprises. With the help of a qualified inspector and the wisdom of your real estate agent, you can use the inspection to help you get the best home price and be better prepared for homeownership.