Don’t fall in a money pit, eager home buyers
May 03
By Problem Solvers Kristin Samuelson and Jon Yates
Buying a house isn’t cheap, even in today’s depressed market.
For most of us, it is the single most expensive purchase we will ever make.
The last thing any of us need is a money pit — a seemingly solid home that is riddled with unseen (and potentially expensive) problems.
To protect yourself, it is absolutely essential to have the house inspected before you buy it, no matter if the house is brand new, a century old or distressed. Although home inspections are not required by law, they are often required by banks before they will approve a mortgage.“Absolutely, you’ve got to have your home inspected, even if your lender doesn’t require it,” said Brian Sullivan, a spokesman for the U.S. Department of Housing and Urban Development. “A good home inspection will protect your investment and your bank’s.”
To find a good home inspector, ask friends for recommendations or search online. The American Society of Home Inspectors has a searchable database of certified home inspectors, available at ashi.org.
In most cases, you’ll want to contact a home inspector after you sign a contract or purchase agreement. Make sure the contract includes a home inspection clause, which makes the pending sale contingent on the inspection — and changes suggested by the inspector. Include language that allows you to walk away from the sale if the inspection identifies costly flaws that are unfixable.
Depending on the size of the house, an inspection likely will cost you $300-$500, with larger properties costing more. Although there are cheaper options available (say, a brother-in-law who works in construction) experts say a home inspection is one place it’s best not to skimp.
A thorough inspection should take three hours or more.
If an inspector tells you he or she will be done in less than an hour, that should be a red flag, said Jack McGraw of ASHI.
“If they say they can do it in 45 minutes, that should tell you,” he said. “Ask for references. It doesn’t hurt to call somebody.”
If possible, avoid inspectors that have ties to the seller, or the real estate agents — anyone who stands to profit if the sale goes through.
“You need someone with an unbiased opinion on the property,” McGraw said.
You should also ask a prospective inspector for his or her license number, and a list of items he or she plans to check. At the very least, an inspector should check the roof, the foundation, the electrical system, the plumbing, heating and cooling systems and appliances. A good one will also check for signs of pests, and identify where utilities enter and exit the house.
If possible, try to attend the inspection, so you can see exactly what the inspector is referring to in the subsequent report.
