No matter whom you talk to that is involved in a home sale transaction, whether it be the owner, buyer, or real estate agent, everyone has a certain amount of reservation concerning a home inspection or [...] No related posts. Related posts brought to you by Yet Another Related Posts Plugin.]]>

So, Who’s Afraid of the Big, Bad, Home Inspection?
 By: Bruce LaBell of Royal Home Inspectors, AZ Vice President of ASHI

No matter whom you talk to that is involved in a home sale transaction, whether it be the owner, buyer, or real estate agent, everyone has a certain amount of reservation concerning a home inspection or “termite” inspection. Why? All that it entails is basically a visual inspection of the home and a short written report, right? So, who’s afraid of the big, bad home inspection? Everyone it seems!
Let me start by making an obvious observation. For most all of us, the single biggest investment we will make in our lifetime is the purchase of our own home. Not only is it an investment that we can’t have go sour, but we must make a comfortable, safe place out of the dwelling to protect and grow our families that we can live in happily and call “home”. And when we’ve outgrown or want a new/different home, we need to realize the equity we have built up in the property to help us purchase our next “home”. “OK”, you say, “I know all of this. What has this got to do with being afraid of home inspections?” Everything, actually, because it is well known that buying or selling a home is probably the second biggest stress we will encounter in our life. All the uncertainty and suspicions begin to “bubble to the surface” as the home sale process grinds on which skews our thinking, and sometimes our common sense.
So, let’s look logically at what a home inspection has to offer for each participant in the home sale process. I want to start with the home owner who is thinking about moving and about to list his/her property for sale, because usually they are the ones that think they have nothing to gain from, and everything to loose from a home inspection. Nothing could be further from the truth.
No matter what “shape” the owner feels his/her property is in (good, bad or in between), the smartest thing they can do is spend the few dollars necessary for an accurate home inspection and “termite” inspection. Spending these few dollars in the beginning will save you major dollars and stress in the end. Possessing this information prior to listing your home for sale not only enables you to plan, but to price your property accurately. The information gleaned from the reports allows you to take care of any repairs that you feel you want to on your time schedule, and to obtain bids from various contractors for repairs you don’t want to tackle yourself, which could save you a lot of money in the process. When you do list your property for sale, you do so empowered with the knowledge that you know of, or have taken care of any repairs, and you can go into negotiations with the buyer straight on because you have a “heads-up” on what the condition of your home is. This negotiating strength will allow you to realize as much of your equity as possible to be used to purchase your new home. Most real estate agents will appreciate this situation also because it takes most of all the uncertainty and stress out of the equation. Normally the home inspection results are revealed shortly before escrow is to close and there is no time for obtaining bids or alternative actions, which can result in a “blown” deal with everyone unhappy.
Most everyone thinks that a home inspection and “termite” inspection is only for the “protection” of the buyer. That is only partly true. Sure home inspections are ordered to reveal any unknown/undisclosed issues. But, the buyer didn’t order and pay for the inspections to make the property out as garbage! The buyer likes and wants to spend and invest their hard earned money on the property and they want to make it their “home”. As a prospective purchaser of a home and property, you want the inspection(s) to validate your decision to purchase that piece of property. You want to know what you are buying. You, of course, want to know what the big issues are, if any, but you also want to know the little things that will be an irritation or money drain before you sign the contract of sale. You want to make up your own mind as to what is acceptable as is, and what is not and needs to be negotiated with the seller. And just about as important, the home inspection is actually your first in depth “get acquainted” look at your new home because it covers information on so many of the homes’ components, systems, utilities and their locations. But even that is not all, if your home inspector is like most concerned inspectors’, he is your source for information you can turn to long after the close of escrow when everyone else involved in the deal has disappeared.
OK, onto the real estate agent and what the home inspection and “termite” inspection has to offer them. How about peace of mind? How about the good feeling inside that you have put together a home sale in which both the buyer and seller are happy and there is not going to be a bad case of “buyers remorse” now that escrow is closed? How about the fact that you are looked up to as an agent that demands full disclosure and still can close the deal BECAUSE EVERY BODY KNOWS WHERE THEY STAND AND WHAT THEY CAN EXPECT OUT OF THE DEAL! In the years I have been involved in inspecting homes, I can’t tell you how many times I have seen buyers follow through and close a sale of a home with major issues because they not only like the home, but because they are fully aware of its’ short comings and are mentally prepared to take it on. With truth and knowledge everyone comes out ahead. As I’ve been preaching for years, your buyer today is your seller tomorrow.
So in closing, there is absolutely nothing to fear from a home inspection or “termite” inspection except fear itself. These are “tools” to be used in a positive way to bring about a positive home sale experience, if you choose to use them in that way.

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Relax, all homes will show problems. Even new construction homes will have problems noted on an inspection report. The reports purpose is to inform you of the condition of your home. Armed with the knowledge of the existence of condition concerns, you can now evaluate [...] No related posts. Related posts brought to you by Yet Another Related Posts Plugin.]]> By: Bruce LaBell  of  Royal Home Inspectors,  AZ Vice President of ASHI

Relax, all homes will show problems. Even new construction homes will have problems noted on an inspection report. The reports purpose is to inform you of the condition of your home. Armed with the knowledge of the existence of condition concerns, you can now evaluate the costs, and determine which combinations of options are best for you.

Opinions vary greatly as to which conditions noted are acceptable “As Is”, or could cost you a lot of money now or down the road. I will assist you in determining pros and cons of each situation, but urge that you get a second opinion on any area that you may have concerns.
• No house is perfect
• Minor problems are to be expected. All houses age. They need lots of maintenance over the years, and seldom do we expect that they are in the condition, or apply the same standards of new homes.
• My job is to report on the negative aspects of condition. This does not mean the home is a bad deal!
• Now you can take some time to absorb the conditions reported and evaluate how to remedy them.
• Talk over your concerns with your realtor, your trusted contractors, lawyer, anyone who will help determine costs or risks associated with the purchase.
• Get quotes for the repairs you deem necessary.

Your Options Are:

1. Accept certain conditions “As Is”.
Evaluate the condition of the home and accept the fact that no house is perfect and proceed with the sale with knowledge of the present conditions.
2. Ask seller to fix selected conditions
When armed with the cost estimates, you could ask that certain items are repaired before closing. You must also understand that the seller is not obligated to accept terms that you dictate. Repairs must be detailed as to standards of workmanship and materials. These can add to the complexity of the sales agreement and very often result in arguments and litigation about terms. Repairs and negotiations can drag out the sale indefinitely, costing all parties time and money.
3. Renegotiate the sales price.
A seller may adjust the purchase price or contract terms if major problems are found. If the problems are costly you will be able to make your decision about purchasing the home with the proper knowledge about the future cost of that home. Neither party is required to enter into negotiations of price. Chances are they priced the home with most conditions in mind.
4. Reject the sale.
Its your money. Don’t let sales pressure saddle you with years of buyer remorse. The terms of this sale are in your control.
For more information or if you have any questions you can contact me, Bruce LaBell at RoyalHomeInspectors.com or (602) 765-2140.

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