When to inspect and why
Sam Schneiderman, Broker-owner of Greater Boston Home Team (our Monday guy) looks at the timing of a home inspection.
Most buyers order professional home inspections of properties that they are considering. Inspections can include structural, mechanical, radon, lead, water quality, air quality, mold, well, and septic system or cesspool inspections. Inspections are limited to whatever the buyer and seller agree to in the offer.
I’m amazed at what good inspectors discover. Even in new homes, inspections typically reveal some items of concern.
If properly negotiated and written, the inspection clause should allow a buyer to negotiate for repairs or cancel a transaction (especially on an “as-is” purchase) if inspections are unsatisfactory and get the deposit back.
In some states, sellers have their homes inspected before they go on the market. Often, they’ll do repairs and provide a copy of the inspection and repair receipts to the buyer(s). The mindset seems to be that things will move along smoother with no unpleasant surprises or re-negotiation after the offer has been signed.
In Massachusetts, most sellers and agents shy away from doing a home inspection up front because:
1. Massachusetts’ law states that agents must disclose anything that would impact a buyer’s decision to purchase a property. If a pre-listing inspection revealed defects, agent would have to disclose them to potential buyers. (If buying a previously inspected home and the agent doesn’t disclose anything, buyers should ask about the inspection results.)
2. It’s highly unlikely that two different inspectors will produce the same list of issues after inspecting the same house.
Rarely, a buyer will do inspections before making an offer. Although it seems to make sense, inspecting before an offer is accepted is risky for buyers because someone else could make an offer before the buyer completes inspections. Therefore, buyers should make offers based on what they and their agent can determine when viewing the property, assuming that everything else is in suitable condition for a home of similar age and condition.
If a buyer wants inspection(s) after signing an offer, inspection clauses must be included in the offer. Inspections must be completed within the time period specified in the offer. If results are not satisfactory and the offer allows the buyer to cancel the transaction or renegotiate, the buyer must give notice exactly as specified in the offer within the allotted time frame or the buyer’s deposit could be forfeited.
PERSPECTIVE:
Items that make a home unfit to live in or tough to resell (if a lender had to foreclose) must be fully operational prior to closing (i.e. adequate electrical system, fully functional water and sewerage system, leaking roof, water in basement or structural issues). Although some sellers try to push those repairs onto the buyer, when the home is appraised the lender’s appraiser will estimate value contingent upon having those items corrected before the closing.
If you bought a previously inspected home, did the agent disclose the results of the prior inspection?
What do you think of sellers pre-inspecting homes? Would you accept the results?
