HOME INSPECTIONS

“I highly recommend to all my clients that they hire a professional home inspector to inspect a home before finalizing the contract, with a contingency clause included that states the sale will depend on the results of this inspection.” When at all possible, I will personally be at that inspection. Phil Hutson.

For your own safety, to make sure you’re getting your money’s worth, and in most cases to satisfy the lender, this is an absolute – especially when purchasing a “resale” home (I’ll cover the purchase of a “new” home separately, as this implies a different set of rules). The owner of a (resale) home generally will convey his home using a disclaimer document referred to as a Property Condition Addendum that the listing agent will present to you for your perusal prior to presenting an offer. Although by law the seller must disclose all KNOWN defects in and of the property, this disclaimer states that the owner (seller) makes no warranties as to the condition of the property, and unless otherwise noted (through an inspection) is being bought “as-is”. The Texas earnest money contracts have a provision that allows you (buyer) to obtain a home inspection for a small fee, and gives you time (generally 3-10 days) to have the home inspected, and the “option” to withdraw this offer if something is found that you do not like, the owner refuses to fix a needed repair, and/or is unwilling to negotiate an allowance for whatever you feel is warranted.

Regardless of the appearance of the home, I never recommend doing your own inspection. Typically, inspections costs between $300-600 (can be substantially more depending on circumstances), and can save you thousands! The inspector is working for you, the buyer, and will typically err on your side if an item is questionable as to “cosmetic fix-up” or needed repair. Remember, all items listed as in need of repair are negotiable. For a list of items that an inspector evaluates, go to www.apexhomeinspections.net. Structural issues, plumbing and electrical codes, heating and air conditioning, drainage, pools and equipment, and even termite conditions are evaluated. Septic and mold issues may require additional inspectors. Remember, it is not the inspector’s job to “pass” or “fail” a home he is inspecting, or even whether he thinks the home is worth the money you are offering, but rather present problems or potential problems and let you evaluate the necessity of repair or negotiation. By law, inspectors cannot perform any work on the home! As long as you and the seller can resolve the inspection items to be repaired, the “option” is released and the home can proceed to closing.

Buying a new home is a little different. I don’t necessarily suggest hiring an inspector on new construction, because quite simply, everything is new! That’s not to say everything is perfect, just that everything is new! A new home goes through numerous inspections throughout the build process, both structural and mechanical, several of which are by “outside” inspectors. The HomeBuilder Superintendent also follows a strict set of guidelines in building this home, because not only is his job on the line, but also so is the reputation of the company. There are two “inspection periods” I want to briefly discuss: (1) completed home (2) to-be-built home.

COMPLETED HOME

If your new home is completed and ready or near ready for move-in, you only get two “shots” at the Builder for him to repair, replace, or touch-up any items – the first is with the Builder Superintendent and approximately 10 days prior to closing, and the second is the day prior or sometimes the day of closing (I WILL ALWAYS BE AT THESE INSPECTIONS – I offer a third set of eyes that has been on hundreds of these inspections, and almost always find things wrong that are too often overlooked by both parties)! The first is a thorough examination (“walk through”) of the completed home that can take as little as one hour, and as much as four hours, depending on size and completion of home. This is also referred to as the “New Home Orientation” period by some Builders, as they use this inspection time to also go over the mechanics and/or locations of various items (A/C & heating units, hot water heater, kitchen appliances, etc.) After the orientation, the Superintendent will note any/all items you deem in need of repair, and he will have approximately 7-10 days to make those repairs. The second “walk through” is simply to make sure these items are repaired, and if so, you proceed to closing. If not, you DO NOT have to close on the home until those items are fixed TO YOUR SATISFACTION! However, most of the new home Builders that I have experience with are very, very good about fixing items after closing, and most give at least a one to two year warranty anyway.

TO-BE-BUILT HOME

There are at least four “crucial” phases in the construction of a new home when an inspection should be done. It would be nice if you could afford to hire an inspector that would go to the job site (lot your home is being built on) and supervise/inspect everything about the way your home is being built, but we all know that is impossible! If you are from this area, you can at least go there and “watch” what is being done, but unless you are a skilled laborer, you won’t really know what you are “watching” for. If you are from out-of-town, the stakes get a little higher – you have no idea of what is “going on behind the walls”, because it is usually physically and financially impossible to travel the distance just to do an inspection! And once you get here, again, if you are not a trained carpenter, roofer, mechanical or structural engineer, etc., it wouldn’t do any good anyway. It would be perfect if the Builder Superintendent could do a daily inspect on your home, but he typically has 10-20 others that he is supervising in the same community! 

So, what is the best-case scenario to a not-so-easy solution? As your exclusive Buyer Agent, I WILL DO SOMETHING THAT LESS THAN 1% OF REALTORS IN THE AUSTIN METRO AREA OFFER THEIR NEW HOMEBUYERS – I will go to the job site on a periodic basis and do a simple walk-through for anything that I may see out of place; I will do NO LESS than the four inspections of those “crucial” phases; and I will phone, fax, or email you oral/written/digital photo updates on the progress. I have never been to “construction school”, but I have performed hundreds of these inspections for my clients over the years, and have on many, many occasions brought suggested corrections, problems and/or potential problems to the attention of the builder supervisor, avoiding potential problems and substantial expense on both seller and buyer.

Contact me if you have any questions regarding home inspections.