Your offer to purchase a home has been accepted, and both you and the seller have signed on the dotted line. You agree to buy the home, and they agree to sell it to you. You will now be applying for your mortage, making sure you have enough money in the bank to clear for the down payment and closing costs.
If you are like most home buyers, you will also be arranging for inspections of the property. You and the realtor and the seller know about what you can see – a home inspector is a professional who can advise you on the condition of the home, and pick up on things that may not be visible to the casual observer. In some states, sellers are required to fill out a disclosure form, telling you what they know about the home – its age, the roof, infestations, plumbing, easements, oil tanks on the property, etc. These are very thorough forms – but bear in mind that many sellers may not really know the full answer to these questions. It is usually advisable to have a home inspection from a professional inspector when you purchase a home that is not new.
A home inspection is a chance for you to really get to know how your new home is constructed, and to verify that there is no serious material defect that might make you reconsider the purchase. Generally you have a set amount of time to have the home inspection take place, and if anything serious is wrong with the house, you have a finite amount of time to formally request that the seller to remediate the problem or withdraw from the contract. Often disputes over serious defects in the house are negotiated by attorneys.
A home inspection is NOT an opportunity for you to find fault with the house so you can shave a few thousand dollars off the total at closing. Serious problems that would need to be addressed might include faulty electrical wiring, sewage problems, groundwater leakage, flood damage, toxic mold, the presence of an abandoned or improperly decommissioned underground oil tank, construction defects, structural termite damage, or a faulty furnace, chimney, or roof. Some of these are easily remediated, others are not. Not every home is perfect, and many defects can be overlooked or settled reasonably.
Radon And Lead Paint And Mold…Oh My!
Some specialized types of inspections may or may not be performed by your home inspector, but his company may have a specialist on staff if needed. Some of these include:
1. Radon. This is a colorless and odorless naturally occurring gas in some areas that is carcinogenic. Most home inspectors leave a canister of a test substance for a few days in the basement, and then send the canister to a lab which can determine if radon is present and if the level is dangerous. This inspection is routine and necessary. More about radon and mitigating it here: http://www.radongas.org
2. Lead Paint. Sellers are required to disclose the presence of lead paint or any records they have of it being used in a home constructed prior to 1978, if they are aware of it. Many are not aware, or are not sure. Let common sense guide you on the issue of lead paint if you are buying an older home, regardless of what the seller may know or disclose. Information about purchasing or renovating a home with lead paint can be found here: http://www.hud.gov/offices/lead/outreach/communityoutreach.cfm You should be aware that in competitive or speculative markets, insisting on lead paint inspection and remediation as a condition for the contract to go forward can be a deal breaker.
3. Mold. This is a huge concern. It is important to remember that not all types of mold are toxic, some are just yucky! If mold is a concern because you suspect it may be present in a home, or because you have health concerns, a specialist can leave test material which will indicate the type of mold present in the air. They will also take samples for analysis. Not only old homes are vulnerable to mold – some recent construction is faulty and moisture can seep in behind the veneer, and mold can grow.
4. Abandoned underground oil tanks. Your home inspector may find an indication that the house was once heated by oil, and recommend that a specialist come with a metal detector to see if there is still an abandoned underground tank. If a tank is found that has not been abandoned properly (sealed, filled with sand or other approved material) there is the possibility of an underground leak on your property which is environmentally hazardous. Usually it is not difficult to have the tank removed, unless it is leaking or located under an addition to the house. Routine removal of an abandoned oil tank can run from around $1500 and up in some areas.
5. Pests. A home inspector may find obvious signs of infestation, termite damage, etc. If termite mounds or damage are seen, frass from carpenter ants, etc, you might want to inquire if the house has been treated for infestation and if it is under warranty. You may want a more detailed inspection for these.
For more information on these problems and on home inspections, visit these professional groups:
American Society of Home Inspectors http://www.ashi.org/customers/faq.asp
Canadian Association of Home Inspectors http://www.cahi.ca/
Generally, a home inspection will reassure you that you are getting a solidly built house, and a sense of how to maintain it. But if there is a serious hazard or defect, it is better to know about it before the closing.