A home inspection is an important part of the process of buying a new home. It reveals problems that you may be able to use as a bargaining tool when negotiating the purchase price or for repairs.
A buyer’s inspection usually happens after making an offer and before the sales contract is signed. Sellers can also have their homes inspected before listing them.
Inspection Contingency
Home buyers often have contingencies written into their purchase contracts to protect themselves during the home buying process. These contingencies usually stipulate that the contract is contingent on the results of a home inspection. This means that if the inspector finds problems with the property, such as significant mold or faulty wiring, the buyer can back out of the contract and get their earnest money deposit back. This is a critical step in the buying process, especially in today’s competitive housing market.
Many buyers may be tempted to waive the inspection contingency so they can move forward with the sale. However, doing so could be a huge mistake. Without a home inspection, serious problems could go undiscovered until after the sale is complete, such as a crack in the foundation or a failing roof. This can lead to thousands of dollars in repair costs that would be the buyer’s responsibility.
In addition, some issues may be so severe that the mortgage lender refuses financing on the property. This is a common scenario, and a good reason to always have a home inspection contingency in place.
Depending on the specific terms of the contingency, the buyer can ask the seller to make certain repairs or negotiate the price of the property down as a result of any problems found. While asking for the seller to fix everything that needs to be fixed isn’t realistic, a good real estate agent can help their clients find reasonable requests to make to the seller.
The typical inspection contingency will also include a timeline within which the buyer must respond to the home inspector’s findings. This typically gives the buyer a few days to review the report and notify the seller of any objections or concerns that they have. Then the seller can either agree to the buyer’s request or decline it.
Waiving the home inspection contingency is never a good idea. It leaves you at risk for costly surprises and it can be very stressful to move through the home purchasing process without having the peace of mind that comes with a thorough home inspection.
Seller’s Disclosures
The seller’s disclosure is a form that sellers complete to outline any knowledge they have of issues with the property. It can range from the presence of lead paint or asbestos to more serious problems like flooding, structural damage and pest infestation. Seller’s disclosure forms are typically based on information found in public records, home inspections and conversations with real estate professionals. However, it’s important to note that not every problem will be revealed on the form. That’s because not everything is required to be disclosed under state law. Only those problems that would have a direct impact on the property’s value or saleability should be included.
Some of the most common items on a seller’s disclosure include details about homeowner’s association fees, pending or ongoing disputes with neighbors and unresolved boundary issues. It also lists any septic systems, septic tanks and wells that are on the property. The form also asks about the property’s location, if it is in a flood zone or floodplain and whether or not it has ever been the site of a landfill or fuel storage tanks.
Seller’s disclosure forms also typically ask about the history of major renovation and remodeling efforts that have been done on the property. The seller is asked to disclose any work that was done without a permit and whether or not the proper building codes were followed. This is usually to help buyers assess the extent of future expenses that they may face in a given property.
It’s important for sellers to note that a home buyer can back out of the contract if any problems are discovered after a sale is completed. That’s because buyers are only required to sign an agreement if they have received a clear and full disclosure of the property’s condition. That’s why it’s always a good idea to have an inspection of the property by a professional before you make any commitments.
The contents of a home’s disclosure statement aren’t necessarily enforceable in court. However, failure to disclose important information can be grounds for a lawsuit against the seller.
That’s why it is important for all parties involved to remain honest throughout the process. A home legal inspection is designed to help keep all parties on the same page and avoid any confusion that could arise during a property transaction. That’s why it’s important to have an inspector with experience in the local market to guide you. Contact us to schedule your home inspection today!
Home Inspection Report
Home inspection reports are lengthy documents that list, in detail, the condition of a property. In addition to photographs, they include lists of significant issues and safety hazards, as well as estimates of remaining useful life for components such as the roof, structure and paint. The report also includes a summary of repairs and recommendations for future maintenance. Depending on the extent of defects and safety hazards discovered in an inspection, buyers may have more leverage in negotiating the price or even turning down the sale of the property, if necessary.
A professional home inspector is required to follow strict licensing regulations in New York, including keeping detailed and accurate records of all completed inspections. Those records are required to be made available upon request. If you suspect your inspector is not following these regulations, or that they are committing other violations or negligence in their work, you can file a complaint with the licensing department.
The cost of a home inspection is typically paid for by the buyer. However, it is often negotiable with sellers. In some cases, the seller will conduct a home inspection before listing the property on the market in order to identify and resolve any problems.
It is important to read a home inspection report carefully and understand all of the information provided. If there are any areas of the report you don’t fully understand, your real estate agent can explain them to you and help you negotiate with the seller to make any needed repairs prior to closing. A home inspection isn’t a pass/fail test, but it will give you a complete picture of the property you are about to buy and allow you to decide if it is right for you.
If major problems are found, it is important to take into account the costs of repairing or renovating those defects and safety hazards before you sign your purchase agreement. Your home is the biggest investment you’ll ever make. Getting it inspected will protect you from unpleasant surprises, increase your buying power, and help ensure a smooth transaction. It’s a small price to pay for peace of mind and a happy home ownership experience. A home inspection should be the first step in your buying process. Contact a qualified New Jersey home inspector today to schedule yours.