Increase Your Real Estate IQ Here!
You are a serious and well-informed buyer - not a dummy! You looked at all the possible neighborhoods and this one has it all - location, schools, and close to shopping and recreation.
You eliminated the fixer-uppers. Avoided the oldies. Finally saw the right home! It looks great, clean, well maintained. It's clear that this property is in mint condition - after all, it's only 3 years old. You are not about to do something really dumb - or are you? Should you bother with the trouble and expense of a home inspection? Here are some questions that reflect the concerns of smart home buyers and sellers about home inspections:
Q: We are buying a high-rise condo, nearly new. It's hard to imagine what a home inspector could possibly find - any ideas?
A: Even in a condo, home inspectors often find surprises. Some examples: improper wiring in one or more outlets, leaky or improperly installed plumbing fixtures, poorly-installed appliances, malfunctioning smoke alarms. These problems may be the result of sloppy or rushed subcontractors who may not take pride in their work, or a do-it-yourself homeowner. The inspector will also watch for cracked or uneven tile, poorly matched carpeting, windows that don't open correctly. In a brand new unit, these problems are often still under warranty by the builder so correcting the problem may be fairly simple once it has been identified.
Q: My uncle is a contractor and he looked at the property carefully before we made an offer. He tested the plumbing, flushed each toilet, tried out all the lights and appliances. He even went into the attic and looked under the house and everything looked fine. What benefit will I get out of the $250-$500 a home inspector will charge?
A: A home inspector will do a more systematic and detailed check than any non-professional is capable of doing. For example, electrical outlets and fixtures might seem to function normally but in fact have hidden problems, maybe even be dangerous. A typical home inspection for a home in good condition will note around 10 or 20 items of possible concern for the home buyer. Many of these are items also unknown to the seller. A written and detailed written report will help you later after you buy, to take care of small items that you might not notice even until you are living in the home.
Q: What areas can I expect a home inspection to cover?
A: Most home inspections will include the five major systems of a home. These are the roof, foundation, plumbing, electrical, and drainage. Other covered areas include the exterior portions of the home such as siding, decks, lanais, and garage as well as concrete walkways, & driveways. The interior items include doors, windows, walls, and flooring. Inspectors will identify and check the utility connections such as water, sewer, and air conditioning. Details on the electrical system such as location, size, and condition of main electric panel are provided. Type of wiring and any noted hazards are noted such as open junction boxes in the attic. Additionally, the appliances are checked for condition and normal operation. Recommendations are made for ongoing maintenance as well as or future comfort and safety. The scope of each inspection will depend on the inspector selected of course.
Q: Who pays for the home inspection - the buyer or the seller?
A: The buyer normally selects the inspector and pays the cost directly at the time of the inspection. This keeps the inspector's loyalty where it belongs- to the buyer, not the homeowner or the Realtors involved in the sale. Sellers occasionally order and purchase a home inspection just prior to putting their home on the market. This helps establish the condition of the property and assists the seller to make adequate disclosures about the property.
Q: As a buyer, when should I schedule a Home Inspection?
A: It's smart select a home inspector while you are shopping for homes. Once you have an accepted offer, your time will be short to arrange for the inspection, so make yourself available to meet the best inspector you can find as early on in your escrow period as possible.
Q: How long do I have to approve of the Home Inspection?
A: The home inspection is normally a contingency in the standard home Purchase Contract in Hawaii and many other states. You have a specific time frame (commonly about 5-20 days) after acceptance of your offer to approve of the home's condition, and you will need the results of the inspection to make sure the property‘s condition is up to your expectations. You need to complete any and all inspections as well as make a final decision to proceed with the sale or not. If you decide to request repairs or compensation from the seller for problems revealed, all parties must agree to this in writing before the inspection period is over. So your home inspection is actually a time period, not just a one-time event.
Q: My brother-in-law is an engineer and he knows most everything about construction. Is it a good idea to have him do my home inspection for me?
A: The short answer is No. He is probably not accustomed to the detailed and systematic inspection that a professional home inspection would provide, nor is he prepared to put it into a manageable written format. If he finds problems, the seller is less likely to take his findings seriously, since he has a relationship with you. And if he misses something important, your recourse will be limited and could cause family problems! However, if you are determined to save a few hundred dollars, any inspection is better than none.
Q: I am buying a fixer-upper home "as-is" so the seller has already stated that he will not fix anything. So why should I bother to get a home inspection?
A: The purpose of the inspection is to get details on the condition of the property, not to make a list of repairs for the seller! In an "as-is" sale you may need one more than ever, since that may indicate the seller knows the home needs work. You can use the inspection to determine what repairs will be needed and make sure you are prepared to deal with it at the price you are paying. Even if you are planning to tear down the home, then you may not want to hire an inspector but you will need the inspection contingency period to meet with contractors, architects, etc. and check on the zoning and building issues relating to the property.
Q: What is my recourse if the home inspection reveals problems with the property?
A: There are no perfect homes, so all home inspections will include a list of deficiencies, small or large. The purpose of the home inspection is to give you, the buyer, as much information about the property as can possibly be obtained prior to the purchase. The inspector will probably look at the home in greater detail than anyone has ever done before, and with a different eye. It is inevitable that some items of concern will be shown. Perhaps there are a few loose shingles on the roof. Maybe some of the shut-off valves under the sinks are frozen (true in most homes). There could be a leak in the shower. The possibilities are endless. What the home inspection will do is help avoid a lot of surprises after you move in
Q: Does the seller have to fix problems shown by the home inspection?
A: NO! The inspection is not a "punch list" of items for the seller to repair. The seller has absolutely no obligation to repair anything that shows up on the report. However, the buyer is not obligated to continue with the purchase if the problems are greater than expected. Sometimes a home seller will agree to do repairs in order to keep the buyer motivated to continue with the purchase. Other times, sellers agree to credit the buyer with a sum of money so they can do repairs after closing. This can become an issue of stress for both buyer and seller, as they attempt to negotiate on these matters in just a few days time. Both sides need to keep their eye on their goal and a cool head in order to keep these issues from derailing the sale.
Q: Help! My home inspection period ends tonight and I have hesitations about whether to proceed since the seller has not agreed to my repair requests. What are my options?
A: Your course of action is either to 1) accept the inspection results and proceed knowing what you now know, 2) disapprove of the inspection results and cancel the sale, or 3) with the seller's written consent, obtain an extension of the inspection contingency. Some sellers do agree to make repairs at the buyer's request, but remember that all agreements must be in writing and signed by buyers and sellers before the inspection contingency deadline, in order to be binding. Remember that once the inspection period is over, the purchase contract specifies that the contingency is waived unless you elect to cancel your purchase in writing prior to midnight on the last day. You and your Realtor need to keep the "drop dead" date in mind at all times until these issues are satisfied and the time limit has passed. If the seller is highly motivated to continue with the sale you will have a better chance than if there are other less picky buyers waiting in line for a chance to take your place.
Q: Why won't the seller repair the items on the inspection report?
A: Good question. Many sellers hesitate to do repairs for the buyer, in case they go to the expense and effort and the buyer is still not satisfied - or the buyer fails to close the sale later for an unrelated reason. It may be logistically difficult for the seller to make the repairs - they many not be occupying the property. It is usually easier to get an agreement for credit towards repairs than to actually have the seller arrange for the repairs to be done. This also puts the buyer in control of the quality of the work being done.
Q: What else can I do to be sure I am fully informed about my purchase?
A: The home inspection period is also designed to allow you to research and review all available information about the home. This could include investigations of building permit history of the property, zoning regulations, schools, and is used to discover the neighborhood features as well. Some buyers bring in an architect or contractor in addition to the home inspector for future remodeling plans. If you need room to put in a pool, you can get an estimate at this time. I often recommend that buyers take the time to meet the neighbors as well. If you want an outside opinion on the "feng shui" properties of the home, what the street is like at night, or any other intangible qualities, this is your time!
Q: I am buying a brand new home - why should I have it inspected?
A: Many buyers do not have a new home independently inspected, especially if they are purchasing from a large developer who is offering a warranty and has a good reputation - but it is still a good idea. When purchasing from a small builder it is very wise to have the home inspected, as he may be hard to locate later if problems develop. It's easy to get swept away by the crisp fresh look and exciting features of the property. New homes may have deficiencies and you have far more leverage with the builder prior to the sale than you will afterwards if corrections are needed.
Q: Is a termite inspection a part of the Home Inspection?
A: No. A termite inspection is a completely different event. It is required by most mortgage companies, and even cash buyers should have one. The termite inspection is performed by a licensed pest control company, and normally paid by the seller. The sole purpose is to determine if there is any evidence of live termites in the home, and the report may also show evidence of prior wood damage by termites also. In a typical home purchase, the termite inspection takes place after the Home Inspection, about two weeks before the close of the sale. You still will need a general Home Inspection.
Q: Can the home inspector inspect the pool for me?
A: It is smart to have a pool inspected before you purchase, as pool repairs can be very expensive and problems may not be obvious. I suggest that separate pool specialist be hired for this type of inspection, which may cost $ 100 - $ 300. The condition of the pool surface, decking, the water chemistry, and the type and quality of the pump and filter system will be detailed for you. Some companies offer leak tests if you suspect a leak, but this is optional and at an extra cost.
Q: What else is not covered by a basic home inspection?
A: All home inspections have exclusions and limitations of liability, so be sure to read the inspection agreement. Your home inspector may suggest that you get an opinion from another expert such as an engineer, plumber, or electrician. Remember that a home inspector is usually not licensed in these areas. You might also need to have a roofer, soils engineer, or architect give you a more detailed opinion on their areas of expertise. Many home inspectors will charge extra to test the sprinkler system.
Keep in mind that the inspector will not be able to inspect areas that they can't get to, such as outlets behind heavy furniture, cluttered homes, or garages piled high with junk. For this reason, if a home is very cluttered you may want to have a second inspection after the occupant moves out to inspect the previously-inaccessible areas.
Q: I am a seller, and my home has obviously been well cared for. Why should I allow the buyer to bring in an inspector?
A: Homebuyers want the detailed information from an outside source on the property they are about to buy. In a typical Hawaii purchase contract, the buyer has the right to obtain such an inspection as a contingency of the sale. If you do not permit the inspection, the buyer may suspect that you have something to hide and cancel their purchase. Even if a few problems are shown on the home inspection report, most buyers decide to proceed with the sale anyway. If serious questions about your home are revealed, you will have a chance to try to work them out with the buyer. In allowing the buyer to bring in their chosen Home Inspector, you will also avoid the liability of undisclosed problems.
Q: I have decided not to get an inspection. What's the worst that can happen!
A: After you move in, you will probably find numerous small items that you missed in your own investigations but would have been revealed by any competent home inspector. You may have lost an opportunity to negotiate with the seller on repairs or credits. There might be major problems that would have left clues for the inspector, which you now have to face yourself. You waived the inspection so you have little recourse now. Hopefully you got a great price and know a good contractor!
Q: How do I select a good home inspector?
A: Ask your Realtor. Realtors deal with home inspectors on a weekly basis, and may know the good and not so good ones. Home Inspectors are not licensed in Hawaii, so any bozo can get a magnetic sign for his pick-up and start inspecting. There are several professional organizations for home inspectors, such as the National Association of Home Inspectors (NAHI), the National Institute of Building Inspectors (NIBI), and the American Society of Home Inspectors (ASHI). Some are part of a national franchise, some independent, and some are licensed contractors or architects. Inspections are not perfect, and each inspector may have his strengths and weaknesses. Inspections vary from detailed to superficial, and a good condo inspector may not be the best choice for an older hillside home. Examine brochures, websites, and recommendations, and look at their qualifications. Call them up and ask questions. Get a copy of a sample report. You tend to get what you pay for. Remember that the most qualified experienced home inspectors are booked in advance so plan ahead.
In over 20 years in the business, I never met a buyer who wished he or she had not had his home inspected, but several "dummies" who wish they did! Homes hold surprises so make your home's secret revelations be good ones!
