Feb 05

Identifying 4 Types of Defects In Your Report

Your home inspection should identify four types of concerns regarding the condition of your home. The four types of concerns should be evaluated as part of your decision to purchase or not purchase the home.

  1. Major Expense – Repair or replacement of a home’s system or components which would be equivalent to $3,000 dollars or more to remedy.
  2. Critical Repair – Repair or condition which, if not addressed, could lead to a major expense.
  3. Marketability – Condition which could hinder your ability to sell the home to another buyer at a later date.
  4. Safety Hazard – Condition which poses an unreasonable risk to the occupants of the home.

An item or concerns which falls into one of the above categories should be considered a defect and be identified as such in your home inspection.

Home Repair

Jan 29

Now That You Had Your Inspection

Now that you had your home inspection you want to ask yourself what items on the report you can handle “as is” and what items you want to negotiate with the seller. This article offers a three possible approaches to consider in how you move from your home inspection to closing.

Arguably, the best option is to add a reair list to an addendum in your purchase contract. Taking this approach may cause extra hurdles with your lender and runs the risk of the buyer not being completely satisfied with the repairs. however offers a strong contractual position if the repairs aren’t performed to the buyer’s satisfaction.

Another option to take after your home inspection is to ask seller for a discount off the purchase price equal to the value of repairs.  This is probably the most straightforward approach and lets the buyer conduct the repairs on their own timeline according their own preference who in who handles the repairs. The drawback to this approach is the possibility of repairs costing more than what was allotted for in the discount.

The third approach is drafting a letter to the seller outlining the repairs to be completed before closing. Although this approach has an advantage it opens the buyer up the possibility of the repairs either not be completed by closing or not being completed to the satisfaction of the buyer and then not having the terms spelled out in the formal contract.

Jan 20

5 Keys Benefits of a Home Inspection

Your home inspection report should communicate the general condition of the home being considered for purchase. The information contained in your inspection report is typically intended to identify key concerns noted by the home inspector as material to your due diligence phase of a real estate purchase agreement. With this in mind, below are 5 key benefits a buyer can expect from their home inspection:

  1. Home inspection reports should help assess your ability to afford and maintain the property.
  2. Most commonly,  home inspections can be great tools to renegotiate the existing purchase offer with the seller.
  3. From a practical perspective, home inspection reports help assess the dollar value of the repairs needed to the home. This value can then be factored in your comparison between the appraisal value and purchase price.
  4. Less common, home inspections can be used to identify scope of work with contractors and other tradespeople.
  5. Most obvious, home inspections can be the basis to withdraw your offer.

Making Decisions