To avoid "buying a pig in a poke," buyers have long demanded
the closing on a home purchase be contingent upon a satisfactory
inspection by a home inspection firm. In many parts of our
country, we're now experiencing a strong sellers' real estate
market and sellers often receive more than one purchase offer on
the same day for their home. In this environment, buyers are
rethinking the home inspection requirement. Is this a good idea?
To Inspect or Not To Inspect
Clearly, if a seller got two offers and one requires a home
inspection be done, most sellers will choose the non-inspection
offer with all other things being equal. So, a home inspection
requirement can put you at a competitive disadvantage. Still,
are you willing to risk purchasing a home that has some
fundamental, expensive problems? What if you purchase the home
and subsequently learn plumbing under the floors must replaced?
What if the repair costs $10,0000?
One option may be to include a provision in your purchase offer
that provides for a home inspection done for informational
purposes only. That way, settlement under your offer is not
conditioned upon the inspection. It would not provide you with
the option of amending the contract to have the seller make
repairs, nor would it provide a way for you to void the contract
should serious problems be uncovered. Should serious problems be
discovered, however, the seller is bound to know the deal will
be in jeopardy. For that reason, even an "informational" home
inspection won't look as good to her as a contract with no
requirement for a home inspection.
Another option you might consider in lieu of a home inspection
is a sub rosa inspection. Instead of using James Bond for
spying, you could ask a friend working in the construction or
engineering field to walk through the house with you. The goal,
of course, is to look for any glaring "red flags" that are deal
killers.
If your friend doesn't see anything disturbing, you can then
write a clean contract offer without contingencies. Sellers love
no contingency sales. The chances are good that you'll get the
home you want, but still have a some assurance there isn't
anything seriously wrong with the property.
There is no one right answer when it comes to deciding on home
inspections. Each buyer has to ask himself how much risk he is
willing to take. If you are the only party making an offer,
demand an inspection. If you are one of many potential buyers,
well, you are going to have determine your comfort level. Others
can provide information, but the decision is yours.
More Information:Visit
http://www.fsboamerica.org/ for more details.
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