Written By: Jacquelyn Annete García Vadnais
Purchasing a new home for personal use or an investment property is a major decision. There are many factors to consider on making such a large purchase and one of those issues is the actual condition of the home. This is particularly true for homes that have been lived in by previous owners along with homes that are older than ten years. It is wise for prospective home purchasers to have a clear understanding of what kinds of inspections they need to plan for before their purchase closes. In addition, it is wise for prospective buyers to consider the pros and cons of home inspections in order to make the best decision possible. In order to learn more about the pros and cons of home inspections for prospective real estate buyers, review the information below:
Benefits of Home Inspections for Prospective Real Estate Purchasers
Obtaining Important Information About Costly Repairs
When it is a seller’s market, it can be tempting for buyers to waive the right to inspect the home in order to be competitive against buyers that are trying to outbid them for a particular home. This can be very dangerous to a potential buyer because they may miss key costly repairs that could cost them a great deal of capital in the near future. There are certain required repairs that are difficult to observe on the initial walkthrough of a home. Foundation repairs or septic repairs, for example, can be hidden and quite costly. If they are discovered after the home sale takes place, they can be a major issue for a new property owner to finance, particularly after they just made such a large down payment.
Receiving Expert Advice Regarding Specific Elements of the Property
One great benefit of home inspections is having the opportunity to walk next to an expert that can describe in detail unique attributes about the property that a buyer is planning to purchase. This can be helpful for new property owners that will learn a great deal from understanding how the cost of the projected repairs will impact the value of the home they are purchasing. It can also be useful to learn the unique history of the particular property along with prior renovations that occurred. Additions to homes are very common and they can have an impact on when certain parts of the roof need to be replaced along with when the HVAC system may need updating or repairs.
Cons of Home Inspections for Potential Real Estate Buyers
Inspections Add a Substantial Amount to the Property’s Closing Costs
There are certain home inspection elements that will require several different home inspectors at times. A typical home inspection should include: roof, attic space, foundation, rain gutters, electrical panel, light switches, power outlets, exterior paint or stucco, thermostats, heating/cooling, ventilation (HVAC), appliances, plumbing fixtures, walls, floors, ceilings, windows, doors, porches, balconies, stairs and railings, basement, garage, walkways, and driveways. The average home inspection can cost up to $500 without factoring in additional inspections including foundations, mold, land ead paint, among others. Depending on the age of the home, additional inspections can get the total bill for home inspections closer to $3000. On average, every mortgage of $100,000 incurs close to between $3,000 - $6,000 in total closing costs, therefore it is best to keep the home inspection fees as low as possible.
Getting Too Many Inspections Can Create Unnecessary Expenses
Making a down payment on a home can be quite costly. This is particularly true when a prospective buyer is putting down a larger down payment that is greater than 20%. Many mortgages will not permit purchasers to include the closing costs, which can add an additional burden on purchasers to get more cash together before closing on a property purchase. This is why it is important to assess which inspections are actually necessary for the particular property along with what their projected costs are. Working with a realtor can be beneficial to refer prospective purchasers to experienced home inspectors in the local area. It is wise to interview multiple home inspectors to be sure that their inspections are comprehensive while not including too many additional costly inspections. For prospective purchasers that are intending to remodel an older home, investing in additional kinds of home inspections may be worthwhile. However, for buyers investing in newer properties, there may be fewer inspections required and the potential to overpay for unnecessary home inspections may be diminished.
Some Home Inspection Reports Can Be Too Long and Vague
A qualified home inspector will provide concise information in their home inspection report. Be sure that the home inspector that is hired is providing a report that is clear, concise, and easy to understand. Vague home inspection reports are not informative to the buyer, and seller, and may cause hesitancy from the prospective prospective buyer.
Final Remarks
Closing costs can create many debates for buyers because there are long-term implications for failing to have the proper home inspections. In addition, there is a healthy balance that should be reached in terms of purchasing the right types of home inspections versus home inspections that are not required for a particular property. It is always wise to consult with an experienced realtor and interview several potential home inspectors. Buyers should make an effort to be present at their home inspection in order to learn as much valuable information as possible. Buyers should also ask as many questions as possible to learn what repairs the property is going to require. By bearing all of these factors in mind, prospective buyers will be in an ideal position to ascertain what the associated projected costs of the repairs are on a particular property, and whether it is worthwhile to continue the property transaction.
--
Jacquelyn Annete Garcia Vadnais is an Investment Consultant and field expert blogger for Barracuda Consulting.
Jacquelyn has a JD/ MBA from Suffolk University, an LL.M in International Law from the University of Miami, and a B.A. from the George Washington University in International Affairs with a Concentration in International Politics. Jacquelyn speaks English, Spanish, French, and Portuguese and has lived in ten countries. Jacquelyn has done work for firms such as Boston Consulting Group and has worked with firms based in over ten countries in the fields of Real Estate, International Law, Expat Living, International Business, Forex Trading, and Travel. She has also volunteered her time and expertise at the Victims Rights Law Center based in Boston, MA.
Please leave your comments below. If you would like to subscribe to our newsletter, click here: https://tinyletter.com/barracuda-consulting. To purchase a full real estate report, or to access a complete suite of investment advisory services please contact us: https://www.barracuda-consulting.net/contact.
Purchasing a new home for personal use or an investment property is a major decision. There are many factors to consider on making such a large purchase and one of those issues is the actual condition of the home. This is particularly true for homes that have been lived in by previous owners along with homes that are older than ten years. It is wise for prospective home purchasers to have a clear understanding of what kinds of inspections they need to plan for before their purchase closes. In addition, it is wise for prospective buyers to consider the pros and cons of home inspections in order to make the best decision possible. In order to learn more about the pros and cons of home inspections for prospective real estate buyers, review the information below:
Benefits of Home Inspections for Prospective Real Estate Purchasers
Obtaining Important Information About Costly Repairs
When it is a seller’s market, it can be tempting for buyers to waive the right to inspect the home in order to be competitive against buyers that are trying to outbid them for a particular home. This can be very dangerous to a potential buyer because they may miss key costly repairs that could cost them a great deal of capital in the near future. There are certain required repairs that are difficult to observe on the initial walkthrough of a home. Foundation repairs or septic repairs, for example, can be hidden and quite costly. If they are discovered after the home sale takes place, they can be a major issue for a new property owner to finance, particularly after they just made such a large down payment.
Receiving Expert Advice Regarding Specific Elements of the Property
One great benefit of home inspections is having the opportunity to walk next to an expert that can describe in detail unique attributes about the property that a buyer is planning to purchase. This can be helpful for new property owners that will learn a great deal from understanding how the cost of the projected repairs will impact the value of the home they are purchasing. It can also be useful to learn the unique history of the particular property along with prior renovations that occurred. Additions to homes are very common and they can have an impact on when certain parts of the roof need to be replaced along with when the HVAC system may need updating or repairs.
Cons of Home Inspections for Potential Real Estate Buyers
Inspections Add a Substantial Amount to the Property’s Closing Costs
There are certain home inspection elements that will require several different home inspectors at times. A typical home inspection should include: roof, attic space, foundation, rain gutters, electrical panel, light switches, power outlets, exterior paint or stucco, thermostats, heating/cooling, ventilation (HVAC), appliances, plumbing fixtures, walls, floors, ceilings, windows, doors, porches, balconies, stairs and railings, basement, garage, walkways, and driveways. The average home inspection can cost up to $500 without factoring in additional inspections including foundations, mold, land ead paint, among others. Depending on the age of the home, additional inspections can get the total bill for home inspections closer to $3000. On average, every mortgage of $100,000 incurs close to between $3,000 - $6,000 in total closing costs, therefore it is best to keep the home inspection fees as low as possible.
Getting Too Many Inspections Can Create Unnecessary Expenses
Making a down payment on a home can be quite costly. This is particularly true when a prospective buyer is putting down a larger down payment that is greater than 20%. Many mortgages will not permit purchasers to include the closing costs, which can add an additional burden on purchasers to get more cash together before closing on a property purchase. This is why it is important to assess which inspections are actually necessary for the particular property along with what their projected costs are. Working with a realtor can be beneficial to refer prospective purchasers to experienced home inspectors in the local area. It is wise to interview multiple home inspectors to be sure that their inspections are comprehensive while not including too many additional costly inspections. For prospective purchasers that are intending to remodel an older home, investing in additional kinds of home inspections may be worthwhile. However, for buyers investing in newer properties, there may be fewer inspections required and the potential to overpay for unnecessary home inspections may be diminished.
Some Home Inspection Reports Can Be Too Long and Vague
A qualified home inspector will provide concise information in their home inspection report. Be sure that the home inspector that is hired is providing a report that is clear, concise, and easy to understand. Vague home inspection reports are not informative to the buyer, and seller, and may cause hesitancy from the prospective prospective buyer.
Final Remarks
Closing costs can create many debates for buyers because there are long-term implications for failing to have the proper home inspections. In addition, there is a healthy balance that should be reached in terms of purchasing the right types of home inspections versus home inspections that are not required for a particular property. It is always wise to consult with an experienced realtor and interview several potential home inspectors. Buyers should make an effort to be present at their home inspection in order to learn as much valuable information as possible. Buyers should also ask as many questions as possible to learn what repairs the property is going to require. By bearing all of these factors in mind, prospective buyers will be in an ideal position to ascertain what the associated projected costs of the repairs are on a particular property, and whether it is worthwhile to continue the property transaction.
--
Jacquelyn Annete Garcia Vadnais is an Investment Consultant and field expert blogger for Barracuda Consulting.
Jacquelyn has a JD/ MBA from Suffolk University, an LL.M in International Law from the University of Miami, and a B.A. from the George Washington University in International Affairs with a Concentration in International Politics. Jacquelyn speaks English, Spanish, French, and Portuguese and has lived in ten countries. Jacquelyn has done work for firms such as Boston Consulting Group and has worked with firms based in over ten countries in the fields of Real Estate, International Law, Expat Living, International Business, Forex Trading, and Travel. She has also volunteered her time and expertise at the Victims Rights Law Center based in Boston, MA.
Please leave your comments below. If you would like to subscribe to our newsletter, click here: https://tinyletter.com/barracuda-consulting. To purchase a full real estate report, or to access a complete suite of investment advisory services please contact us: https://www.barracuda-consulting.net/contact.
I am thankful to you for sharing this article here. It's a nice article, Which you have shared here . Your article is very informative and I really liked the way you expressed your views in this post. homes brooklyn bronx
ReplyDeleteI am thankful to this blog giving unique and helpful knowledge about this topic. House Inspection Brisbane
ReplyDeleteI appreciate your efforts which you have put into this article. This post provides a good idea about.home remodeling contractors Vancouver WA Genuinely, it is a useful article to increase our knowledge. Thanks for sharing such articles here.
ReplyDeleteThank you so much for sharing such an informative article. Pest Inspection Sydney
ReplyDelete