Homes have different attributes that shape their value and other outcomes of real estate transactions. One of the best ways to judge a home is to conduct a home inspection. Licensed inspectors conduct home inspections and evaluate the driveway, foundation, electrical system, HVAC system, plumbing, and framing. The inspector pays particular attention to specific items, such as the electrical outlets, alignment of your windows, condition of the roof shingles, insulation, garage, and basement foundation. Home inspections also evaluate whether your home meets the regional standards for electrical wiring, garbage disposal, and plumbing. This article explores a few scenarios where home inspections are essential for you.
1. Pre-Listing Home Inspections
If you want to list your home for sale, you need a pre-listing home inspection. This type of home inspection helps identify any repair or maintenance issues. Most sellers typically wait for potential buyers to express their interest in the house and pay for the inspection. However, paying for the pre-listing home inspection before the buyers even see the house has several advantages for you. First, you can make the repairs identified by the inspector. Second, you avoid the risk of a buyer backing out of a deal after the inspection. Pre-listing home inspections also help you determine the correct value for your property. Often, you may add value to your home without even knowing it, and the assessment can reveal such equity.
Homeowner insurance is essential in protecting your investments in a home. Most insurance companies do not require you to conduct a home inspection before giving you an insurance policy. This requirement only applies when your home is old and has not had an inspector evaluate its status recently. Insurance companies request 4-point inspections so that you can qualify for a standard insurance policy.
3. During a Purchase
Home inspections are a contingency that helps you determine the minor and major issues with a home before committing your money. The inspection can uncover potentially costly or life-threatening problems, such as faulty wiring or mold. Most real estate deals have provisions that allow the buyer to walk away from the agreement after the inspection. Therefore, you can take advantage of this window and walk away from potentially risky purchases. Therefore, home inspections are an absolute necessity when buying a home.
4. Lenders' Requirement
Some lenders also require you to conduct a home inspection before giving you a mortgage or any other type of loan with the house as collateral. Lenders may have their inspectors or request you to hire one. At the very least, mortgage lenders require an appraisal and a report showing inspection of wood-destroying organisms. The fungi or termite information reported in an inspection report is advantageous for you and your lender. As dangerous pests, these wood-destroying organisms may indicate possible structural failures. Therefore, the inspection helps the lender steer you away from such deals. In addition, the lender uses the inspection report to determine the loan amount. You can use the inspection report as a means of advocating for enough money for the purchase and improvements to your home.
Home inspections are necessary when listing a home for sale, obtaining insurance, purchasing a home, and getting a mortgage.