The Hidden Value of a Home Inspection

Waiving contingencies is a strategic way to gain an edge in a competitive market. But one contingency you should think twice about waiving is the inspection. While skipping a property inspection may save time and money upfront, the long-term risks can far outweigh the initial rewards.

Here are five reasons why a third-party property inspection should happen before every home purchase.

1. Discover Hidden Problems

No matter how many times you view a home:

• Structural issues like foundation cracks can go unnoticed by the untrained eye and can be easily covered by surface repairs.
• Major system issues like faulty electrical or plumbing aren’t typically visible during a walk-through.
• Unseen health hazards like mold and radon require special training and equipment to detect and correct.

2. Gain Negotiating Leverage

If a problem is found during the home inspection, you can:

• Ask the seller to address it.
• Request a repair credit and fix it yourself.
• Request a reduction in the final sale price.

3. Learn More About Your Home’s Needs

A property inspection can provide insight into the life expectancy of home systems and structures. For example, a seller may not pay for the replacement costs of a roof expected to last another five years, but knowing when that replacement will be necessary allows you to budget accordingly.

4. Protect Your Investment

Homeowners often make renovations without proper permits. Even if this work appears flawless, it could be a safety hazard. If you purchase a home with unpermitted renovations, the liability and costs of legal refurbishments may be passed on to you.

5. Obtain Better Financing

A property inspection can result in better loan terms (e.g., a reduced interest rate). Many loan products, including FHA and VA loans, require a home inspection for approval.

Ready to embark on your homebuying journey? Reach out to discuss which financing options may be right for you.