The purchase of a home is probably the largest purchase and financial commitment a person will make in their lifetime. Every effort should be made to reduce the risk of making a mistake in the process of buying.

BE AWARE THAT YOUR MORTGAGE COMPANY, TITLE COMPANY, ANY GOVERNMENT AGENCY (such as FHA), OR YOUR REAL ESTATE COMPANY DOES NOT WARRANT THE VALUE OR THE CONDITION OF A HOME.

While a Mortgage Company or FHA may have an appraiser determine the value of the property, it is an estimate only and is used to determine the amount of mortgage and if the condition of the property makes it eligible for FHA mortgage insurance.  It does not, however, guarantee a home’s value or that the property is free of defects. The seller's disclosure form only lists major problems that the seller is currently aware of and is not a guarantee that problems do not exist. If you have concerns about the homes value, you should have the home appraised by a licensed appraiser. If you have concerns about the condition of the home, you should have the home inspected by licensed inspectors.

As the Buyer, YOU should carefully examine the property and have it inspected by a qualified home inspection company to make sure that the condition is acceptable to you.  HomeBuyerConsultants.Com Inc. recommends that you always make the sales contract contingent on inspections to allow you time to decide whether or not you want to hire inspectors and what inspections you need. Inspections by the buyer are recommended even if the seller already had inspections.

A standard overall inspection typically covers  the roof, gutters, chimney, foundation, electrical systems, plumbing, heating system, air conditioning system, attic, ceiling insulation, windows, walls, ceilings, floors, doors, appliances, basement, crawl space and/or basement. As a minimum, the standard inspection is always recommended.

Other specialized inspections are available as needed for additional costs. Some mortgage lenders (particularly government insured loans) require that you do a pest infestation (termite) inspection, septic and well water tests. Homes built prior to 1978 may have lead based paint. Homes built before 1981 may have asbestos insulation. If you have radon concerns you should ask for a radon inspection. Toxic mold is a well publicized concern. Since some form of mold likely exists in every home and surroundings, if you have health concerns related to mold you should have the home inspected for types and levels of mold.

If an inspector finds problems in any of the inspections and corrections are needed, you may negotiate with the seller about having the faults corrected. Be sure to separate minor and major problems. Significant problems with the roof, plumbing, electrical system, heating/air conditioning, foundation, mold, lead paint, radon, asbestos, wet basements or crawl space would certainly fit into the major category. Work on correcting the problems that would keep you from purchasing the property if not corrected.

The seller may respond that they will fix some or all the problems, offer cash at closing to cover the problems, offer a lower price to cover the problems, or refuse to do anything. Often a buyer accepts a cash settlement so the buyer can see that the problems are properly corrected or the buyer may be planning to upgrade/renovate where the problem exists. If major problems are found and are not sufficiently corrected to pass inspection or an agreeable settlement is not made, you may be released from the sales contract if it was conditional on inspections and have your earnest money returned.

WALK THROUGH INSPECTION PRIOR TO CLOSING

HomeBuyerConsultants.Com Inc. also recommends that you always make the sales contract contingent on a final ‘walk through’ inspection just prior to closing to assure the property has been maintained to be in the condition it was at the time the Purchase Agreement was signed, that all agreements in the Purchase Agreement have been met, and to assure that any inspection problems that the seller agreed to correct before closing have been completed.

 This is particularly important if there was a significant amount of time between the accepted offer and closing, if there was any lack of trust or animosity created in the negotiations with the sellers, or any question that inspection corrections have been made.

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