Are You Ready For The Home Inspector?

There was a time not too long ago when buyers rarely requested one. Just five years ago the Chicago metropolitan area had only 200-300 home inspectors, while today the figure is 3,000 and growing. The combination of ever-increasing consumer awareness and soaring real estate prices, has made today's home buyer now more than ever, proceed with caution before committing to the purchase of their dream home. It is estimated that 60% of all real estate transactions involve a home inspection as part of the offer to purchase agreement. Although some home sellers are now beginning to hire an inspector and fix the property before it goes on the market, this is still rare. It is almost always the buyer that hires the home inspector. The buyer makes a written offer to purchase the home with a clause that the written offer is contingent upon a home inspection (usually within three business days) and that all major repairs recommended by the inspector are corrected (usually by the seller) prior to closing. Many sellers will lower the selling price instead of fixing the home. Sound's nice and easy right?

Sometimes this is where the problems begin and can be tough to resolve.

This is how it works. The home inspector prepares a written report for their client (buyer) that discloses maintenance related issues and any necessary repairs deemed necessary based on the knowledge and experience of the inspector. Anything from broken door knobs to hazardous conditions that need immediate attention like gas leaks, detached exhaust vents and other potential serious situations. If there are expensive repairs needed, the attorney's representing the two parties may be able to iron out an agreement where the expensive repair costs are divided equally and the buyer bears responsibility for all minor and maintenance related issues. This is just one of many possible settlement scenarios. It should also be noted that the buyer sometimes just walks away from the deal and looks for another home. As you can imagine, home sellers now are beginning to refuse offers that have an inspection clause in the agreement. This does not mean sellers can do as they wish. By law, home sellers must disclose in writing to the buyer any known property defects that they're aware of. Failure to disclose known problems almost always comes back to bite them in the future.

Home inspections are here to stay.

Many real estate experts agree that in the very near future all lenders will require a home inspection before lending money on the subject property. This of course is in addition to the long time mandatory home appraisal.

Best advice for home sellers?

Don't neglect maintenance issues! Gutter missing from a downspout? It may be no big deal now, but it will be in a few years when the foundation cracks from water damage. Tree branches scraping your roof? That may cut the life expectancy of the shingles in half.

Don't neglect old components! Is the hot water heater 20 years old? Replace it. Have your furnace inspected twice a year. Is it too old? Replace it. The bottom line is you need to be pro-active. It's your home so take care of it. Then someday when the home inspector knocks on the door you can smile and let him in.