With the number of bank owned properties on the market today, getting a home inspection is even more important. Banks are exempt from providing buyers with the typical disclosures a seller would provide. They will not provide the Transfer Disclosure Statement which a seller fills outs and answers questions about the property, among others. The banks must disclose anything they know about the property but in many instances they do not know any of the homes history. Even in a transaction where there is a "regular" seller who has lived in the home, you need to consider the source of the disclosures. You need to keep in mind that the seller is trying to put the property in the best possible light to a potential buyer. It is imperative that you have the property inspected by a qualified inspector so you are aware of any defects before they purchase the home.
There are steps to this process, the first being the offer to purchase itself. Your offer should include an inspection contingency that allows you to inspect whatever you would like. Some inspections you may want to consider are a pest inspection, general home inspection, well inspection, septic inspection. It really depends on what is important to you. If boundaries are important, get the property surveyed. Does there appear to be drainage issue? Get it checked out. If you are considered about permits go to the county and pull the permits. If the general inspector says the roof is questionable get a roofer out there to check it out and give you a bid. I have a list of well over 20 inspections that you may or may not want to have performed. Do whatever it take so that you feel comfortable moving forward with the purchase.
This being said you also need to understand that the inspections must not harm the property or you must pay to put the property back into the original condition. For example, if there is evidence of water damage on the ceiling of a room below a bathroom, it may be necessary to remove drywall to see if there is an active leak. You would need the homeowner’s permission before you go tearing into walls and you would need to put it back into the same condition or work something out with the seller in advance. So when you write your offer make sure there is a broad inspection contingency.
You will also need to establish in the offer the amount of time you will need to get the inspections done. The standard time allowed is 17 days. This may seem quick but for the most part the inspectors are aware of the time constraints and will get things done very quickly. It is important that you understand that once your offer is accepted and escrow is opened things will move quickly. You will be very busy the first couple weeks of escrow. Your lender will be asking for items to complete the loan. You will be scheduling and attending inspections. I will be going over disclosures and escrow paperwork with you. You must remember that there are deadlines built into the contract that you must adhere to. Make getting all the necessary inspections done a priority.
One of the biggest objections I hear to doing an inspection is that it will cost the buyer money. This is very true. The buyer is responsible for paying for their inspections. However some inspections may be negotiable. You can request in the offer that the seller pay for some inspections for example the termite, septic or well inspections. But you need to remember you might be competing against other offers and the more you ask for the less likely the seller is to accept. I also like to remind my buyers that spending $400 or so for a home inspection is money well spent, especially if a fatal defect is discovered. This is probably the biggest investment you will make and a home inspection could save you a lot of money. It is best to know what you are buying.
The purpose of the home inspection is for the buyer to know the condition of the property so you can make an informed decision as to whether or not you want to continue with the purchase. The home inspection is not meant to create a shopping list of repairs you expect the seller to perform. While you can submit a request for repairs to the seller before doing so you need to limit your requests to "deal breakers". These are items that must be done in order to feel comfortable with moving forward. I have seen buyers use the inspection report to come up with a laundry list of repairs and upgrades they wanted. The seller's response was "tell them to go buy a brand new house or raise their price by $100,000". The seller is under no obligation to even respond to your request for repairs. The inspection is meant to help you decide if you want to purchase the property or walk away.
You may have been searching for a year and this is your dream home. You may have written numerous offers and been outbid or waited around for short sale approval that never came but no matter what, do not let your emotions cause you to cut corners. Yes it is nerve wracking and I understand you really want the home to check out. I have seen buyers devastated after doing a home inspection and discovering the well was bad and they could not purchase the property. It took a little bit for the sting to go away but in the end they were very happy they found out before they moved in and yes, they found another home and are perfectly happy. Do the home inspections so you know what you are buying and you can have some peace of mind.
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