Should You Skip the Home Inspection for a Better Deal?
When real estate markets are moving quickly, sellers sometimes become
uncompromising. Why make concessions if your home is leading the neighborhood's
Ms. Popularity contest? This may lead buyers, caught in the frenzy of a bidding
war, to become reckless, yielding one of the most important aspects of the
purchase process: the home inspection.
What an Inspection Won't Do
We don't buy homes frequently, so the process can be a bit
confusing. The home inspection is one of the most commonly misunderstood
processes in the real estate transaction.
Just as a home appraisal won't tell you that the furnace is about to go kaput,
a home inspection won't tell you what the home is worth. These are two different
processes, initiated by two different parties. The appraisal is bank-ordered.
The lender uses the appraisal to ensure that the home is worth what you've
promised to pay for it.
While a large home inspector training institute likes to claim that the
inspection is "all-encompassing," it is far from that. That's not to diminish
the value of the process – it is extremely important. But it can't tell you, for
instance, what might be growing or breeding behind the walls or if there is a
dangerous radon level in the home.
The home inspection is also not a guarantee that the home will be in the same
condition when you take possession as it was when the inspection was
performed.
The typical investigation by a home inspector is a visual one. He or she will
look at the home's roof, structure and major systems, such as plumbing,
electrical, HVAC and ventilation. If an inspector can't see an area for whatever
reason – access is blocked by the owner's belongings or it's locked – he can't
investigate it and therefore won't include it in the report.
What a Home Inspection Provides
Since a home is such a huge investment, it only makes sense to be concerned
about its condition. A home inspection may just save you thousands of dollars.
More than anything else, a home inspection by a licensed professional provides
peace of mind.
The inspector will run the heating and cooling system and investigate the
water heater. While in most cases an inspector doesn't have access to the heat
exchanger in the furnace, he can tell you the condition of the filter. He has no
way of knowing the condition of the wiring behind the walls, but he can test the
system for shorts.
The best home inspectors will recommend further inspection by an appropriate
contractor. For instance, if he feels there may be a structural problem, he may
recommend that you contact an engineer.
Should You Waive the Inspection Contingency?
In a multiple-offer situation, a buyer who waives the inspection contingency
is most likely going to prevail. What seller wouldn't relish the thought of a
quicker close and fewer headaches, not to mention saving a ton of money if
something happens to be wrong with the house?
But, by the same token, cash-strapped buyers need to know if the house they
are about to buy has bad wiring, a leaky roof, a heating system on its last legs
or anything else that may cost thousands of dollars to repair.
Buying a home without having it professionally inspected is the same as
buying it as-is. If you've ever purchased a used car from a private party, you
understand that you may be buying someone else's headaches. Even knowing that,
the feeling that you may end up on the side of the road with a broken-down car
is hard to shake.
Transfer that feeling to what will probably be the largest investment you
make in your lifetime, and it's easy to understand why the home inspection has
become a routine and vital part of the home-purchase process.
A home inspector can't possibly tell you everything that might be wrong with
the home you're about to purchase, but you will be reassured that the major
systems are in good working order. And that peace-of-mind is something you
should never compromise on.
Richard Thyssen, Broker of Record
Colleen Thyssen, Sales Representative
Direct: 519-495-1541
Email:
rthyssen@rogers.com
www.thyssengroup.com