Question:
“I plan to buy my first home soon and want to learn as much as possible. I know I should have a home inspection done. But how do I know which findings are serious and what to ask to be repaired?”
Answer:
Great question!
There are only 6 major systems of a home:
- Foundation
- Structure (roof, walls, etc.)
- HVAC
- Electric
- Plumbing
- Pool/Spa
Most everything else is cosmetic. And even in categories 1-6, since you’re not buying a new home (unless of course you ARE), you should expect minor issues and maintenance items. That’s normal.
So, first of all, be sure to attend the home inspection, or at least show up towards the end to discuss the findings with the inspector and have him/her show you anything important.
Tell the inspector that you know his job is to find every imperfection, but you mainly want to know the items that are major defects, if any.
If you need an idea of the cost to repair, most home inspectors can give you a rough figure. (If yours can’t or won’t, you may need to have a contractor give you an estimate.)
Then discuss with your Realtor. IMPORTANT: Look at it in the context of what kind of value you got for the house.
Some do’s and don’ts:
- Don’t ask for items that were apparent when you made your offer, as it will be obvious you’re not negotiating in good faith and that will just tick off the seller.
- Don’t ask for too much or you may get a blanket “no.”
- Don’t get stuck on principle that the seller won’t fix something they “should” fix and lose a house you really want. There are no “shoulds” other than what they’re required by law to fix. (See next bullet)…
- Do understand that the list of items a seller must fix by law is very short: missing/inoperative smoke or carbon monoxide detectors and missing earthquake straps on a water heater.
- Do ask for a credit rather than repairs in most cases. This is because you may not like the quality or manner of the seller’s repair.
- Do understand that lenders require that all credits be called “closing cost credits.”
- Do ask for some of the work to be done or for a price reduction if the total exceeds your closing costs. This is because lenders won’t allow a credit to exceed your actual costs.
