Mortgage

Must you forego a house inspection? Actual property consultants say no

Experts say: don't do without the home inspection

It is a challenging market for home buyers in many regions of the country. Demand is high and housing supply is generally low.

With so much competition, some buyers forego a home inspection to make their listing more attractive to sellers.

Just ask an expert, however, and they will tell you that not going through the inspection is not in your best interests.

Here's why a home inspection is recommended and sometimes required.

We also offer you a few options to make your listing more attractive without having to pass on an inspection.

Check your eligibility to buy a home (December 2, 2020).

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Why a home inspection is important

Ask most of the experts and they will likely tell you that skipping a home inspection is not a good idea.

"A home inspection is of the utmost importance when buying a home," says Rajeh Saadeh, a real estate attorney in Somerville, New Jersey.

"Inspecting (the house) will ensure that it is worth the price you pay for it. It also helps you understand how much money it would take to have the property repaired if necessary."

Saadeh continues: “For most people, a house is the biggest purchase of their life. From a business and financial perspective, it is important to understand the actual condition of this home before proceeding. "

"There are always objects (during inspection) that are easily overlooked or not entirely visible to the untrained eye." –Chris Bello, real estate agent

Chris Bello, real estate agent at the Keller Williams Memorial in Houston, agrees.

“I really encourage my customers to have an inspection done,” he says. "There are always things that are easily overlooked or not entirely visible to the untrained eye."

“For a few hundred dollars, you can identify multiple items that you can negotiate price cuts or repairs on. Or you can even step back during your option period if you decide the house needs more work than you are ready. "

Is it allowed to do without a home inspection?

Unless your mortgage lender requests a home inspection, you can do without it if you wish.

According to the Home Buying Institute, the home inspection is almost always completely optional.

“It is rare for a lender to ask you to do a professional home inspection. Lenders usually don't care if the property is inspected, although they may encourage you to do a home inspection, ”Saadeh says.

He explains that lenders care about the property's value – which is determined by a home valuation.

While lenders require you to have the home appraised, they are much less likely to need an inspection.

That means, if you want, you can forego a home inspection so that your offer looks more attractive to the home seller.

This way, however, you can miss problems that are costly to repair. And you will definitely miss the opportunity to let the seller pay these costs for you.

Cost-benefit ratio of home inspections

Your lender may not take care of the home inspection. But as a home buyer – and one who has to pocket repairs – you should.

"Buyers, including investors, should never do without a professional home inspection," says Saadeh.

While there's no chance the seller will pay the repair costs, he explains, “The physical condition of the property can only be understood if a licensed home inspector does a thorough inspection with a trained eye and creates a report.

The cost of a home inspection – typically $ 300 to $ 400 – is minimal compared to the cost of home repairs, which can be tens of thousands.

That way, you can be sure that you are aware of any deal breaker issues before signing off for the purchase.

Keep in mind that the cost of a home inspection is minimal compared to the level of security you are likely to have.

Home Advisor estimates that the typical cost of a home inspection is between $ 279 and $ 399.

Now, don't skip the home inspection to find out your new home is taking thousands of dollars – or tens of thousands – in repairs. You might want you paid the few hundred up front.

What is a home inspection facility?

A “contingent liability” is a condition that must be met for the property purchase agreement to be binding.

"A home inspection facility allows a buyer to have a property inspected and allows the buyer to exit the transaction if the inspection reveals defects that the buyer won't do without and the seller won't fix," Saadeh says.

In other words, this contingency gives you an “out” if your home inspector discovers defects or problems that are affecting the business.

A home inspection case gives the buyer an "out" if there are problems with the inspection that the seller does not pay to repair.

"You have the right to unilaterally terminate the contract for any reason during the inspection period," says Dylan Lennon, a broker in Asheville, North Carolina

“You have the option of foregoing this eventuality and proceeding with the purchase. However, you shouldn't do this until after you've discussed the implications with your real estate agent and real estate attorney. "

Check your eligibility to buy a home (December 2, 2020).

If you forego a home inspection, it might be fine

In general, experts only recommend avoiding a home inspection if you have a trained eye for real estate and are sure you can figure out potential problems without a professional inspection.

For the average home buyer, this does not apply.

However, experienced builders, investors or real estate professionals might be happy to do so.

"Usually," says Lennon, "buyers only choose this route when they are reasonably certain that the home is in good condition or when they are reasonably certain that they can do the obvious repairs themselves."

Henry Angeli, a Jacksonville, Florida real estate investor and broker, says there's one more reason you might want to forego a home inspection.

"If you know the owner who built the property personally, you can feel more confident about the quality of the house," he says.

In addition, savvy investors and experienced pinball machines often forego inspections.

"They bought enough houses to have a good sense of how much work a house takes. If the numbers work for them and they are willing to take a certain risk, they can choose to forego the inspection" says Bello.

Obviously, if your plan is to buy the house and then tear it down to build another on the house, it makes sense to skip a home inspection.

In this way you receive your offer without having to forego the test

It's true: if you include the option of a home inspection in your contract, you may become less attractive to a seller.

However, it is possible to get the seller to say "yes" to your listing without sacrificing the home inspection.

"Most sellers are sensible and allow a period of inspection to make sure the condition of the home is acceptable for safe living and reliability," says Angeli.

"You can always sweeten the deal for sellers by trying to close faster, pay cash (or) eliminate other contingent liabilities in your listing – such as being able to sell your home within a certain timeframe."

"You can sweeten the deal for sellers by trying to close faster, offer cash (or) eliminate other contingencies in your offer." –Henry Angeli, real estate investor & broker

Another alternative is to "offer a larger non-refundable bond deposit or shorten the length of your requested inspection period," suggests Lennon.

If the seller states they are uncomfortable with a home inspection, ask if it is allowed on the condition that the seller does not have to perform repairs or offer discounts.

“This way you can have the inspection done and keep the right of withdrawal if you don't like what you find, while also making it clear that the seller will not change the property or business due to inspections. Says Saadeh.

The final result

A home inspection can pose costly problems with the home.

Often times, knowing these issues in advance can negotiate so that the seller will pay to fix these issues. You can also resign if this is not the case.

Forego the home inspection and agree to pay the cost of any problems you discover after you move in.

Home inspections usually only cost a few hundred dollars, which is a relatively low cost to have peace of mind when buying a home.

Check your new plan (December 2, 2020)

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