When I started in real estate in Modesto eight years ago there was no such thing as short sales and bank owned properties. There were only regular people selling their homes. Buyers got inspections, found things wrong, then insisted the sellers repair the items and the buyers were happy because their inspection expenses were offset by the repairs they received. Nowadays however with so many short sales and bank owned properties inspections have taken on a new purpose. They are, for the most part, for informational purposes only because distressed sellers will not make any repairs to a property 99% of the time. Most of the time you are looking at a vacant property with no information from the previous occupant leaving many questions unanswered. This is where a home inspector comes in handy- he can help you address some of the mystery involved.
Home inspections aren't cheap though- and when you start adding on pest, roof, chimney and pool inspections you can hit $1000 in expenses before you know it.
So which inspections should I get, if any? Well I am supposed to reiterate to you over and over again the importance of home inspections- and they are important, but they are not for everyone. Here are some examples and tips on maximizing your inspection expenses.
1. Prioritize your inspections: Decide with your agent what inspections are most important and do those first. I would suggest starting with a home inspection. Often times if there are pest related issues or roof issues the home inspector will note that he sees a potential problem and suggest you have those items looked at. You can then do those inspections on an as-needed basis. Also, if the home is newer construction it is less likely there are going to be significant deferred maintenance issues from prolonged neglect or bad repair jobs.
2. Be realistic: Are you planning an immediate top to bottom rehab of the home? If so, a home inspection will probably be a waste of your money. Homes that are in major disrepair either from neglect, vandalism or long term vacancy and obviously have major issues a home inspection is going to tell you the obvious. A better use of your money would be with a pest inspection, which would reveal structural infestation that you cannot see (see Part 1).
3. Go a la carte: If there are certain items that are of specific concern, have them looked at individually to save money. Let's say the home is in visually good physical condition overall, but the air conditioner looks questionable. Rather than pay a home inspector $350-$400 to come look at the entire property, have an HVAC contractor come and just look at the HVAC. It will likely cost you a quarter (or less) of what an entire home inspection will cost and you will get a far more qualified evaluation of the system. The same goes for plumbing or electrical issues. If something looks obviously wrong having a plumber or electrician take a look will get you a far more qualified opinion (often cheaper too).
4. When to absolutely not skimp: If you are a person who cannot (or will not) complete simple DIY projects, are on an extremely tight budget, or have little to no knowledge about the simplest home repairs, get all the inspections you can. Not everyone is this way, but we all know this person, right? The one who can't change their own light bulbs or air conditioning filter- let alone own their own set of screwdrivers? If this is you, do all the inspections you can- and it is vital you hire the right kind of people to do the inspections for you. That topic will be covered in part 3 of this series.
5. Two inspections to never skip: This will apply to only a small portion of buyers in the Modesto area. If you are buying a home with a well and/or septic system- NEVER skip those inspections. Septic system repairs (and replacement) can be extremely costly and since they cannot be looked at visually it is vital you have them inspected by a septic contractor during escrow. On a traditional sale the seller typically pays for this but on a short sale the bank may not pay for it. It is about $450 but they empty the septic tank, test it and test the leach lines. Having the well tested will ensure your well is operating properly (so you have running water).
The last, most important piece of this puzzle is your Realtor. It is important that you work with someone who has the experience and knowledge to help guide you and advise you through these issues. Many of us have years of experience not only as homeowners, but as agents overseeing major repairs to properties. I personally have seem damage and repairs of all kinds and enjoy being able to pass that knowledge and experience on to my clients. Stay tuned for part 3 of this series that will address how to choose the right inspectors for the job.
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