Real Estate Inspections are part of buying and selling your home. We wanted to give you some in’s and out’s and What you can expect as buyer and seller when it comes to real estate inspections.
Based on the content from a recent episode of the Mile High Mortgage and Real Estate Report on AM1690 KDMT Denver’s Money Talk Radio with Co-Hosts Dave Hosterman and Joe Massey including Special guest Kurt Haneke.
Congratulations you are under contract on your new home! It’s time to dive in and see what shape the home is in. This is a critical piece of purchasing a home so pay close attention to the following. Homes can be expensive and the cost to fix a major item can be devastating if you are not prepared. Let’s take a closer look at what an inspection is, who to hire, and how to address them as both a buyer and seller.
The inspection is among the first items of business once you are under contract. Get it scheduled and plan to be there. You want to walk alongside the appraiser throughout the house so you know what items may need to be addressed right away AND down the road. An inspection in its simplest form is a professional (yes with an inspector’s license is highly recommended) that understands the inner and outer workings of a home.
They will look at the electrical box, the basement and throughout the home for water damage, check out the furnace and AC. Outside they will look at the roof, chimney, and drainage among other items. They will look over every square inch that they can access to seek out potential issues. Once the inspection is complete the inspector will send you the report within a day or two.
You have now received the inspection report and it is time to read it through, make notes on items you feel need to be addressed, and review with your realtor. You are looking for Health, Safety, and big ticket items. You do not want to be nickel and diming the sellers of your 30 year old home on little items that can be fixed for a nominal amount.
As the seller you have now received the items of concern from the Buyer’s agent and it is time to review. Take into consideration the Health, Safety, and big ticket items noted. This is where current Codes will come into play for instance the electrical box may have been up to code at the time you bought the home but now is not up to code and may pose a safety risk. Decide what you are going to address and recommend to either fix the items yourself or to credit the buyers with a reduction of the purchase price or a seller credit at closing to be used towards their closing costs.
It is important regardless of what side of the transaction that you are on to consider that there is someone on the other side with specific needs as well. I can’t stress enough to stay focused on Health, Safety, and Big ticket items. If the home isn’t brand new then don’t expect a seller to make it that way for you. On the other hand, if your electrical box is in a potentially dangerous state and you wouldn’t feel safe there now that you know about it, neither will the new buyer’s so make it right.