It's a common question many are faced with when purchasing a new home. "Should I order a home inspection?" Occupying a vital role in the U.S. and Australian real estate markets, home inspections play a significant role in property transactions.
The main reason for hiring a home inspector is to ensure the overall functionality and state of a house are safe and secure, as well as if there are any defects that need to be resolved.
When selecting a home inspection company, it is crucial to conduct a thorough inspection and write a report to highlight any issues. The report can then be submitted to the seller in the hope of ensuring that the problem is addressed before any settlement is reached.
Making a decision that might put your financial wellbeing in jeopardy can be a daunting task, but the right tip could help prevent potential financial issues that can arise as a result of a neglected home inspection.
Reasons for a Home Inspection
To be clear, a home inspection is not a requirement when purchasing a house, it is just a step practiced by almost everyone. Home inspectors meticulously document their findings in reports ranging from 15 to 70 pages.
The report includes general information about the house and its current condition, records the state of each system and component, and notes whether each issue identified affects the home's safety or core functionality.
In this article our team will list our reasons why ordering a home inspection is a good idea.
It is best to detect any carbon monoxide leaks, broken detectors, ventilation issues, mold, and mildew, etc. before spending a lot of money and buying a house. The biggest benefit you can get from a home inspection is the assurance that you'll be purchasing a home that is safe for you and your loved ones.
Provides an “Out”
A thorough home inspection can reveal important information about a home's condition and systems. This informs the buyer about the costs, repairs, and maintenance that the home may require both immediately and in the future.
If a buyer is unhappy with the results of the home inspection, he or she usually has one last chance to withdraw the offer to purchase stating all the reasons why he or she has decided to do so.
Discovery of anything Illegal
A house has a set floor plan that needs to be checked for compliance before investing in it. Illegal additions or installations will fetch you a hefty fine. A home inspection can reveal whether rooms, altered garages, or basements were built without a permit or did not comply with building codes.
You as a buyer can ask the seller to do either two of the following; to obtain the permit needed to have any addition be considered legal or have the unauthorized part of the home be demolished to conform with the original floor plan.
If this goes on unchecked, it will fall on the shoulders of the buyer to have it corrected according to the floor plan submitted to the proper authorities after the sale has been made.
A buyer will always have the option to negotiate a fair price for a home, especially if you have the facts to back up the price point at which you are offering to purchase the house.
A home inspection will also be a negotiating tool that buyers can use because the inspector will discover and list out all the red flags and potential problems in a property and this can affect the marketability and price.
Forecasting of future costs
A home inspector can estimate the age of major systems in the home, such as plumbing, heating, and cooling, and critical equipment such as water heaters. They can assess the current state of the structure and tell you how long the finishes have been in the home.
Every component in the house has a "shelf-life." Understanding when they need to be replaced can assist you in making important budgetary decisions, as well as determining what type of home insurance coverage or warranties you should consider.
Some insurance companies will not insure homes if certain conditions are not met or it does not meet building code requirements. Insurance companies also want to make sure that there aren't any illegal activities happening.
You as the potential homeowner can also be guided on which type of home insurance to get based on the recommendation of the inspector, which will save you money in the long run.
When you get the full picture, you as a homeowner can decide whether to purchase a home or build it from the ground up. Some homes may need too much repair and work done that it would make more sense financially to do it from scratch.