Home Inspection: Check These Important Systems
A home inspection may well be one of the best bargains in real estate. For a few hundred dollars you can have a trained professional go through a home. You don’t want expensive surprises in these important areas:
- Roof and foundation
- Heating and air conditioning (HVAC)
- Plumbing and electrical systems
There are a number of ways to include a home inspection clause in a real estate purchase agreement. Unfortunately, not all inspection clauses give equal protection for purchasers.
Home defects: Major vs minor
When it comes to home condition, the understanding is very simple. No home is perfect. The big question is whether the imperfections are major deal breakers or minor annoyances that could be fixed easily and cheaply.
Home inspection clauses
One home inspection clause might say that the purchaser can have a home inspection, but that the owner is only responsible for the first $1,000 in repairs. The problem here is that repair costs may be very much higher.
In one recent case, a home inspection found that the property used aluminum wiring. The use of aluminum wiring is a significant problem because homeowner insurance policies may not be available for such properties.
If you can’t get homeowners insurance, then you also can’t get a mortgage. All of a sudden aluminum wiring is a very big deal. In this case, it cost more than $6,000 to change the wiring.
Should I bail after a really bad home inspection?
In Missouri, most inspection clauses give the buyer the right to have a “satisfactory” inspection. It is purely up to the buyers to determine what is or is not satisfactory. If the property is not satisfactory, the buyers can get back their deposit and the transaction is done.
Home inspection questions
What are the questions you need to ask a home inspector before hiring?
“Do you have a current Missouri license?” Most states now have websites where you can look up licensing information and see if an individual is licensed.
What does a home inspector do?
For details regarding home inspection language speak with local real estate brokers and attorneys.
Are you insured or bonded? The inspector – and the consumer – need such protection in case there’s an accident at the property.
Are you a member of a professional association? Perhaps the American Society of Home Inspectors (ASHI) or the National Association of Home Inspectors (NAHI)? What are your professional credentials? Do you have a background in construction or are you a licensed engineer?
What type of inspection report do you use? There are different form reports available. Many of them make repair needs easy to understand. Be aware that the inspector’s scope of engagement may exclude certain activities. For example, an inspection agreement may state that the inspector is not a pest controller or a chimney sweep.
Real estate brokers
Should you get a home inspector recommended by a real estate broker? It can be argued that the real estate broker has experience in the community and can identify a good inspector. On the other, brokers may give you a list of inspectors to avoid potential liability and claims of favoritism.
Some borrowers worry that they may ultimately not buy the property. Hiring a home inspector will then be a waste of money. The better way to look at this is to say that the purpose of a home inspection is to help you make a purchase decision. Sometimes that decision is yes and sometimes it’s no. In either case, you had the advantage of an independent inspector.
You probably need a home inspector even with new construction. According to ASHI, even new homes can have defects. It suggests getting inspections prior to foundation pour, before the insulation and drywall are in place, and at the final walk-through.
Lastly, in addition to a home inspection, it can be worthwhile to have a home warranty. And that goes double if you can get the seller to throw it in with the house.
Posted by: Carlson Mortgage – a top-rated St. Louis mortgage broker providing home loans in the state of Missouri. We are routinely ranked as a #1 mortgage broker in Missouri on Yelp, Google and Zillow. We can be reached at (314) 329-7314 seven days a week.
Our loan application can be found here or you can call us at 314-329-7314 to speak with one of our mortgage loan officers. Also, here is our pre-approval page, if you are looking to buy a home or need a referral to a top real estate agent.
Let us be your source for some of the lowest mortgage interest rates in St. Louis on first-time home buyer, conventional, FHA, Veterans (VA), Jumbo and condominium (condo) financing. Since 2004, we’ve been providing home loans and mortgage services in St. Louis that are tailored individually to your unique needs and to your financial situation. Our loan officers speak English, Spanish and Russian. Call us today to inquire about home loan interest rates, to get pre-approved for a purchase or a refinance mortgage, or if you have any general mortgage lending questions.