Hiring a licensed home inspector and going through the process is a scary endeavor for buyers. Therefore, to allay their nerves and trepidation, take the time to prep your buyers for the process by explaining the following:
What is A Home Inspection
What a home inspection is and is not
The first step is to explain what an inspection is, and what to expect. Next, you should prepare your buyer for the lengthy inspection report. The report can be up to 40 or 50 typed pages with photos. Depending on the size of the home, the inspection will take between one to six hours to complete. A general inspector looks for signs of damage such as leaks. Some of the things he or she will likely do are:
- Run the faucets and showers
- View ceilings for any damage from exterior sources
- Turn-on the dishwasher, oven, microwave, and washer and dryer to confirm they are functioning properly
- Observe walls, ceilings, floors, windows, and doors for any damage
- Examine the home to determine if there might be an insect or pest issue. Observations such as: droppings, wood that appears to be damaged or holes that should be closed
- Test electrical system to determine if it is up to code. Additionally, all electric outlets, heating and central air conditioning systems to determine functionality
- Verify the attic (if applicable) to determine proper ventilation, insulation and general condition
- Explore if there appears to be lead paint or asbestos, which requires a more detailed review. Many homes built before 1980 contain asbestos in old floor tiles, ceiling tiles, roof shingles and flashing, siding, insulation (around boilers, ducts, pipes, sheeting, fireplaces), pipe cement, and joint compound used on seams between pieces of sheetrock. Some newer houses may also contain asbestos.
Exterior of Home Inspection
In a house or townhouse, the inspector will check the exterior of the home (the foundation, basement, structural components and the roof for damage). Additionally, the inspector may perform a radon test (radon is a colorless, odorless, tasteless radioactive gas that’s formed during the natural breakdown of uranium in soil, rock and water).
Home Inspection Defects
The inspector will find defects, sometimes many defects. However, that does not mean buyers are not purchasing a good home. Some examples, the small leak might just need a bolt tightening. The dishwasher is not working because the water-line was switched off by accident. These are easy fixes. However, when buyers see a laundry list of items, it can seem as if the home is falling-down. This is most often not the case.
Note: Inspection issues are important to lenders. The lender may not finalize the loan until repairs are made.
Negotiating Home Inspection Defects
How repair requests work
The two sides agree on an offer price based on the known conditions and defects of the home. The inspection report points those defect issues out. It is the larger issues that buyers will request a price reduction for, or request repairs. The home inspector will point out and document every detail observed. Keep in mind, many of them can be easily rectified. These kinds of repairs include things like re-caulking the bathroom tub or replace the sink stopper. Here are a few guidelines for repair requests to help you wade through what’s normal and what’s not.
The two sides agree on an offer price based on the known conditions and defects of the home. The inspection report points those defect issues out. It is the larger issues that buyers will request a price reduction for, or request repairs. The home inspector will point out and document every detail observed. Keep in mind, many of them can be easily rectified. These kinds of repairs include things like re-caulking the bathroom tub or replace the sink stopper. Here are a few guidelines for repair requests to help you wade through what’s normal and what’s not.
Home Inspection Contingency Clause
What a home inspection contingency clause is
The home inspection contingency clause (a.k.a. due diligence clause) provides buyers with the right to conduct inspections on the home for a specified time-frame; approximately five to 10 days. The buyer during this time-frame can choose: 1) to either cancel the contract or 2) negotiate repairs based on the findings outlined in the report by the professional, licensed inspector(s). The seller can elect to repair problems themselves or escrow funds for repairs that the buyer will take care of after closing.
The home inspection contingency clause (a.k.a. due diligence clause) provides buyers with the right to conduct inspections on the home for a specified time-frame; approximately five to 10 days. The buyer during this time-frame can choose: 1) to either cancel the contract or 2) negotiate repairs based on the findings outlined in the report by the professional, licensed inspector(s). The seller can elect to repair problems themselves or escrow funds for repairs that the buyer will take care of after closing.
Types of Home Inspections
The different types of inspections
The general inspector will outline minor to major problems and will provide recommendations for improvements. A potential issue raised may require a deeper dive by an expert to determine the extent of the potential problem. There are many different types of inspectors. There are grading or structural engineers and/or architects, mold and/or asbestos specialists, HVAC specialists, pool specialists, roof specialists, pest inspectors, radon specialists and chimney or tree experts, to name of few.
The general inspector will outline minor to major problems and will provide recommendations for improvements. A potential issue raised may require a deeper dive by an expert to determine the extent of the potential problem. There are many different types of inspectors. There are grading or structural engineers and/or architects, mold and/or asbestos specialists, HVAC specialists, pool specialists, roof specialists, pest inspectors, radon specialists and chimney or tree experts, to name of few.
After the Home Inspection
What happens after the inspection
After the buyers reviews the inspection report and they’ve agreed with the sellers on repair items. Then, those buyers must follow up to ensure that all items have actually been repaired. Buyers can opt for a quick visual view themselves if the fixes are simple. However, if they were more complex, they should consider having the inspector return to the home for a final inspection before closing.
After the buyers reviews the inspection report and they’ve agreed with the sellers on repair items. Then, those buyers must follow up to ensure that all items have actually been repaired. Buyers can opt for a quick visual view themselves if the fixes are simple. However, if they were more complex, they should consider having the inspector return to the home for a final inspection before closing.
Home Inspection Big Picture
Buying a home is a major financial investment. The inspection provides a big-picture analysis of the state of their prospective home. The inspection report gives the homeowner the chance to understand
- what to monitor,
- what requires maintenance; and
- how to ensure their home is safe and sound.
It is important for the buyer and the buyer’s agent to be present at the inspection. Furthermore, buyers and agents should ask questions. As well as, and take notes during the inspection. Finally, be prepared for any deficiency the inspector may discover. Rather than getting overwhelmed. Consider it an opportunity to learn about the condition of the home and how to maintain it in tip-top condition.
Don’t let your clients sweat over the list of small fixes. Rather, help them to discover what could be real flaws. Use the report to show buyers how to maintain and care for their purchase
Whether you’re a rookie agent, a rising team leader or an established veteran broker, we can all benefit from sharpening our skills. Follow our “ Back to Basics ” series to learn fundamental strategies, tactics, philosophies and more from real estate pros across the industry.
BY KAREN KOSTIW | MAY 10, 2019
Karen Kostiw is a licensed real estate salesperson at Warburg Realty in Tribeca, New York City. Connect with her on LinkedIn.
Manhattan Real Estate
Photo Courtesy of: NewStart Inspection Corp.
