What If the Report Reveals Problems?

Almost every report reveals some minor repair and maintenance concerns, even if the property has been well maintained, but these flaws should not normally affect your purchase decision. If, however, major defects are revealed, you may want to re-negotiate your offer. And it is possible that you may decide that the nature of the work required is beyond your means or ability and that the house is not for you. The choice is yours.

Finding a Home Inspection Professional

Be wary of using an inspector recommended by the seller or seller's agent. You want someone who will be there representing you, not the seller. It pays to look around. As usual, you may want to start with recommendations from people who have used the inspector before.

Regardless how you find an inspector, be sure to check credentials. Some states require licensing, others do not. If your state does, check it out. Make sure the inspector's license is up-to-date and that the inspector is in good standing. Look for professional certifications, which can add credibility. And look for membership in a professional organization like ASHI (American Society of Home Inspectors).

Do not hire an inspector who also performs repairs or works with someone who does. There is too much room for conflict of interest in this situation.

TERMS TO KNOW

Earnest money deposit

A deposit made by the potential home buyer at the time of an offer. See binder, deposit.

Escrow

Money, documents or other items of value in the care of a third party to be released upon the fulfillment of a condition. For example, the deposit by a borrower with the lender of funds to pay real estate taxes and insurance premiums when they become due, or the deposit of funds or documents with an attorney or escrow agent to be disbursed upon the closing of a sale of real estate.

Escrow account

The account in which escrow payments are held.

Home inspection

An examination conducted by a person (usually a licensed professional) contracted by the buyer to evaluate the structure, systems and mechanical condition of a property. A satisfactory home inspection is often included as a contingency by the purchaser.

THINK & DO REMINDER

Home Inspector Hiring Tips:

• Interview several candidates and ask a lot of questions.
• Find out if the person is a fulltime inspector. Or does he hold down another job too?
• Ask what other home services he provides-this will help weed out the conflict of interest.
• Ask if he carries errors and omissions insurance to cover liabilities. Professional companies will have some type of liability insurance.
• Ask what will be inspected and make sure it is a complete list.
• Ask if an inspection agreement will be provided that defines the scope of the inspection.
• How soon will the report be ready once the inspection is complete?
• How much will it cost? Prices vary from area to area, but usually range in the $250 to $500 range for typical homes.
• Will the inspector provide a refund if you are not satisfied with inspection itself, not the results?
• Will the inspector recommend additional tests, such as termite, radon, etc.? And, if so, will he be able to recommend inspectors or arrange such tests?

The Ways in Which an Attorney Can Help...

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