Are Home Inspections Worth It?

Real Estate Education Training

Should I Spend Money On an Inspection?

I had a brief conversation with a few folks at the local barbershop and one of the topics lead to the value of investing in a home inspection when buying a home.  Often buyers are facing sizable down payments, recurring and non recurring closing costs. They are also thinking about all the furniture and other items needed for the home after escrow closes.  Homes costing several thousand dollars can bring some pretty serious cash outlays that may stretch the buyers budget.

My comment to the group was that it would be very wise to invest a few hundred dollars towards a home inspection by a "neutral third party".  I emphasis neutral third party because some of us have worked with clients that had a relative or friend who "knows everything about construction and can actually build a home from the ground up".  That is admirable but the few hundred dollars saved by having the family member or friend look the home over might not equate to a professional home inspection report that the homeowner would consider very objective.  It would be much better for all parties to have a report prepared by an objective and skilled home inspector. 

I usually have brochures from home inspection companies around the office.  I am willing to provide the buyers at least two or three of those brochures for comparison with the advice that they should talk to them all before making a selection.  I also take the extra step of suggesting that they check the Yellow Pages or Internet for additional options.  We do not believe it to be in our best interest to select the home inspection company for the buyer.  We do believe that we should make them aware that a home inspection is in their best interest and to do everything we can to encourage their securing one.  We also ask that the Buyer sign the CAR form waiving the inspection should they decide to move forward with the home purchase without having an inspection.   There are default time periods in CAR forms for completing the home inspection.  Be sure to convey this information and ask the buyer to move quickly towards securing the inspection.

Another benefit of the professional home inspection report is the preparation of a detailed recap of the findings including photos of the areas inspected.  Most home inspectors are prepared to provide the buyer and Realtor a copy of the inspection report at the conclusion of the home inspection. I ask the buyer to attend and  plan to spend at least 3 hours for the inspection.  Several inspectors provide Portable Document Format (pdf) inspection reports which are especially convenient.  This really helps when there is a need to share the results with a transaction coordinator, cooperating Broker or others.

Finally, I always secure the buyers permission to share the pdf home inspection report with the cooperating Realtor along with a list of any repair requests by the Buyer for the Seller to consider.  The old "a picture is worth a thousand words" definitely applies when obvious problems exist.  The inspection report with photos often strengthen the buyers request for repairs or replacement of missing items in the home.  The Sellers Realtor knows that there may be an appraisal report that might note some of the same defects found by the home inspector.  Lenders might require repairs before approving and funding the loan.

It is better to spend a few hundred dollars to know the condition of the home as opposed to investing thousands of dollars to learn that major repairs are needed after close of escrow.

Michael Teer, Broker
Certified Residential Specialist (CRS)
Teer One Properties, Inc.
(951) 313-5168 Cell
www.miketeer.com
ProbateSoCal@gmail.com

CalBRE#: 01523582/00843708