Home Inspections

What are they and is it necessary?

When entering into a purchase agreement to buy a home, it’s in your best interest to book a home inspection. Homes are like us in a way; we never really know exactly what is wrong with our health until we see a physician. Well, the same goes for homes. Like us, homes have a past of their own and whether or not the owner is aware, homes age. They require an inspection every so often, so as a new home buyer you want to be sure to make the inspection a priority. 

What is a home inspection? 

A home inspection is a visual examination, performed by a certified professional that focuses on the physical structure and systems of the home starting  from the roof down to the foundation.

Inspectors examine:

• Installation

• Maintenance

• Safety

• Performance

What are the defects?

The list of items that inspectors examine is never-ending and falls into multiple categories so I will not name them all here. But the items to be inspected will be categorized by its level of defect. These levels include:

1. Acceptable

2. Material Defect

3. Major Defect

4. Minor Defect

5. Safety Hazards

6. Not Inspected

7. Cosmetic Imperfection

8. Not present

Keep your eyes open for major defects, safety hazards and not present. 

When do I need to have an inspection?

There’s no wrong time to do an inspection. If you are a homeowner, you should consider an inspection every 3-7 years in my opinion, because certain appliances (with a shorter life expectancy) may need maintenance within that time frame. 

Still, consult with your inspector about this to get a sure answer for your home specifically. Also sellers, if you are looking to sell your home, this is a great time to have an inspection because you want to know what to expect when your offers start rolling in. If something needs repairing, will your buyer want compensation of some sort? Are you willing to make repairs to sell at top dollar? There is a lot to think about here. 

Next buyers, you will typically have your inspection after signing an agreement to purchase. You may agree to purchase the home with a contingency for inspection. That means, within the bounds of your agreement, you could potentially back out of the purchase if the inspection comes back unfavorable to you. 

Bad Inspections

In real estate, sometimes the inspection ACTUALLY DOES come back unfavorable. A client of mine experienced this and ended up passing on a home with major plumbing issues on an investment property. It was painful, but thank God for the inspection or he would have been stuck in a bad deal. 

Bad Inspection, Now what!?

There are a few things you can do if your inspection has major defects. You can,

1. Cancel your contract, like I mentioned earlier. As long as you are within the bounds of your contract, you should be able to exit without penalty, and with retained earnest money  

2. Request sellers make repairs prior to closing. This is an option but keep in mind that the seller is likely to “repair” the home at the lowest possible cost to them 

3. Negotiate the price down, figure out how much each repair costs and deduct the cost of repairs from your offer price

4. Negotiate closing costs, have your seller contribute the total cost of repairs (or a percentage, however you structure your contract) to your closing costs credit

5. Buy the home, repair it on your own dime. It depends on whether or not it's worth it to you.

Closing

In the state of Georgia, home inspections are not required by law; however, most mortgage lenders require an inspection. If you choose to use cash, I cannot stress how much I recommend having the inspection regardless. You never know what home has underlying issues until you inspect it.

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