Why You Need a Home Inspection
Buying a home is one of the most important purchases you will make in your lifetime, so you should be sure that the home you want to buy is in good condition. A home inspection is an evaluation of a home's condition by a trained expert. During a home inspection, a qualified inspector takes an in-depth and impartial look at the property you plan to buy. The inspector will:
- Evaluate the physical condition: the structure, construction and mechanical systems.
- Identify items that should be repaired or replaced.
- Estimate the remaining useful life of the major systems (such as electrical, plumbing, heating, air conditioning), equipment, structure and finishes.
The home imspection does not estimate the value of the house.
After the inspection is complete, you will receive a written report of the findings from the home inspector, usually within three to five days.
Homebuyers that buy their homes with the help of the Federal Housing Administration (FHA) mortgage insurance programs may want to check out this information. All homebuyers can benefit from the information in the link brocher above. This brochure is help you to understand the difference between home inspections and appraisals, the benefits of home inspections, how to find a qualified inspector, and the importance of radon testing.
Home Inspections Are Not Appraisals
A property appraisal is a document that provides an estimate of a property's market value. Lenders require appraisals on properties prior to loan approval to ensure that the mortgage loan amount is not more than the value of the property. Appraisals are for lenders; home inspections are for buyers.
FHA, which is part of the U.S. Department of Housing and Urban Development (HUD), requires lenders to obtain appraisals of properties securing FHA-insured loans. FHA requires appraisals for three reasons:
- To estimate the market value of the property.
- To make sure that the property meets FHA minimum property requirements/standards (health and safety).
- To make sure that the property is marketable.
The FHA appraisal process will note property deficiencies that are readily observable and found not in compliance with HUD's minimum property requirements/standards These deficiencies may not be the same as those items noted in a home inspection report.
About FHA Home Inspections
FHA helps individuals and families become homeowners by providing lenders with mortgage insurance for certain loans.
FHA does not guarantee the value or condition of your future home, and FHA does not perform home inspections. If you find problems with your new home after closing, FHA cannot give or lend you money for repairs, nor can it buy the home back from you.
That's why it is so important for you, the buyer, to get an independent home inspection. Ask a qualified home inspector to thoroughly examine the physical condition of your future home and give you the information you need to make a wise decision.
The Bottom Line: Spending Hundreds May Save Thousands
When you make a written offer on a home, you should insist that the contract state that the offer is contingent on a home inspection conducted by a qualified inspector. You will have to pay for the inspection yourself, but it could keep you from buying a house that will cost you far more in repairs down the road. If you are satisfied with the results of the inspection, then your offer can proceed.
Eric,
On Friday I did an inspection off of Jimmy Carter Blvd. for a buyer on a foreclosure that is an "as is"purchase. The roof was original to the home, 25 years old, and leaked onto the ceilings of the home. I walked the roof and there were 2 soft spots that I could have easily fell through. In the attic I could see decayed roof sheathing in many areas. Recommendation- New roof
The AC unit did not produce sufficient cool air and the heating unit did not work. Recommendation- HVAC contractor. All these issues of course are the big issues. There were many more problems of repair work that needed to be addressed.
During this due diligence phase, my clients are going ahead and getting pricing and further evaluation of these systems. They said what they will try is to present the facts and see if the bank will further negotiate even though it is "As-Is"
Were my clients getting a good enough deal to still go ahead with the purchase. I don't know. But this is why an inspection should be done if the property is sold "As-Is"
I have a sale as-is and my invester is having an inspection. We are having the utlities turned on so we can check out the heating and electrical systems. I can not understand when buyers don't have an inspection. I have inspection on my own purchases.
Most of the home inspectors in my area have laptops and portable computers and print out the inspection report immediately.
Great Post Eric, I would never let a buyer buy without an inspection even If we had to pay for it. You save time, money and heart ache. Also if you have one done on every home you can save a lot on your E O as well.