Did you know that home inspection issues are the biggest reasons for contract termination, amounting to fully one-third of all reported contract terminations?
At EXP Realty, we understand that buying a home is one of the biggest and most important decisions you will make in your lifetime. And after working with tens of thousands of buyers, we’ve learned that there are three concerns (we call them the “BIG THREE”) that all homebuyers have in common.
Our goal is to make sure you never have to ask yourself: How can I ensure that I don’t buy a property in poor condition? That’s why we work with you through every step of the home buying process, including home inspections and repairs. Here are a few questions we can answer to help you feel more comfortable when making an offer on a home:
What is a Home Inspection?
A home inspection evaluates the visible and accessible systems and components of a home and is intended to give you an understanding of their condition.
How do Home Inspections Work?
You can arrange for the home inspection or ask your Beverly-Hanks associate to assist you. Unless you otherwise agree with the seller, you will be responsible for payment of the home’s inspection(s). If the inspection is performed after you have signed the purchase contract, be sure to allow adequate time for it and any repairs to be performed.
Whenever possible, be present. The inspector will review with you the results of the inspection (submitted to you afterward as a written report) and point out any problems. Usually the inspection of the home can be completed in two to three hours (the time can vary depending upon the size and age of the dwelling).
What do Home Inspectors Typically Inspect?
Home inspectors typically review:
Structural components of the home (floors, walls, roofs, chimneys, foundations, etc.).
Mechanical systems (plumbing, electrical, heating and air conditioning).
What don’t Home Inspections Cover?
Inspections don’t protect you in the event an item inspected fails in the future. Home inspections are an evaluation of the property on the day it is inspected, taking into consideration normal wear and tear. Home inspections don’t address the cost of any recommended repairs. Working with your agent and reputable contractors, estimates can be developed during your due diligence period.
Home inspectors are not required to report on wood-destroying insects, environmental contamination, pools and spas, detached structures, or cosmetic issues. An inspection also doesn’t guarantee that the home complies with building codes (which can be subject to periodic change).
Always ask the home inspector if he or she covers all the things that are important to you. If not, you and your agent can work together to arrange for an inspection of these items by the appropriate professionals.
How do I Negotiate Home Repairs during the Purchase Process?
In many real estate transactions, there are two rounds of negotiations. There’s the initial negotiations, which lead to the signed offer to purchase agreement. Then there’s round two, the repairs discovered during the inspections. Approach this second round keenly aware that a transaction is not complete until money has changed hands and all of the legal documents are recorded.
HERE ARE 4 TIPS TO SUCCESSFULLY NEGOTIATING REPAIRS:
Once a seller “believes” a house is sold, they have little interest or motivation to deal with repairs in the same manner that you, the new owner, might.
Credits are always better than a seller performing the work. If you take a credit, you can use that money to complete the project to your own standards.
Since the repairs will become your responsibility after closing, there will be no need for re-inspections after the repair is completed.
As you negotiate, be smart about the true cost of repairs and what you may have planned for future improvements.
NOTE: Be aware that some lenders may limit the amount of credit you can receive and may require certain repairs before they’ll accept a mortgage on the property.
Be Confident in Your Home Purchase
Before you invest your hard-earned down payment on a property, make sure you know exactly what you’re getting. During this emotional time when you’ve begun to mentally move into the home, your agent will play a key role in representing your interests.
The EXP Buyer’s Experience also introduces you to our proven strategies for conquering your homebuyer concerns, from planning for your home search to preparing for closing. But nothing can replace having a EXP agent by your side. If you would like more information about buying a home, our experts at EXP agents are here to help.
All real estate is local. In order to make confident real estate decisions, we believe it is important for you to have timely and neighborhood-specific information. If you would like more information about buying a home in NC, our experts at EXP Realty are here to help. Contact us today to speak with a EXP agent about buying homes or land in North Carolina.