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Long & Foster has partnered with three
outstanding home warranty providers to give you protection
and simplify your life.
What
To Expect From A House Inspector
What can home buyers expect from a home inspector —besides
a bill for $225 and up (depending on the size of property
and/or complexity of the inspector’s report)?
 First
of all, require proof of membership in the American Society
of Home Inspectors.Next, expect a quickly-delivered (one
or two-day) written report.
Expect practical returns. While you can see for yourself
many flaws in a house, the practiced eye of a professional
inspector can probably spot more, especially in areas not
easily accessible to a home buyer. Specific information
could even reduce the price of a house if the seller will
agree the price has not already been discounted for defects.
Possible
Repairs
- Serious problems (heating, roofing, plumbing)
- Medium problems (insulation, paint)
- Minor problems (electrical outlets, kitchen sink)
If no serious problems are found, inspection can pay off
indirectly in assurance that you are making a sound investment.
Many states now require that sellers provide buyers with
either a residential property disclosure or disclaimer statement.
Title
Insurance
Title insurance provides protection in the event any of
a number of past actions threaten the title to your property.
Most lenders will require title insurance to protect their
interests. Be sure to ask about an “owner’s”
policy as well, to protect your title. You may save money
if you buy owner’s title insurance at the same time
as mortgage title insurance, rather than buying it separately
later.
As a home buyer, you may be able to save money with a “re-issue
rate” for title insurance, if the property changed
hands within the last several years. The title insurance
may allow a lower “re-issue rate” premium because
the recent title search is still valid. Consult your title
attorney and insurance company.
After
Loan Approval
After the lender approves the mortgage, the buyer will receive
a “loan commitment letter” stating the mortgage
amount, interest rate, and length of loan term. The buyer
should check it carefully, and return a signed copy to the
lender or follow other specific instructions.
Next, the selling and listing brokers will coordinate a
settlement date. You should be sent a letter confirming
the date, place, time, and a checklist of everything you,
as the home buyer, need to bring.
Walk-Through
Inspection
The purpose of the walk-through inspection on the day of
settlement or several days prior to settlement is to determine
if all conditions in the contract are satisfied. The time
for the buyer to inspect and note defects for correction
by the seller is during the contract negotiations and prior
to signing the sales agreement. Repair or replacement items
should be noted in the contract or contingent on a house
inspection, otherwise, most resale homes are sold in “as
is” condition.
It is up to the buyer to perform the walk-through inspection,
not the seller, who may or may not be present. The buyer
should be accompanied by the selling agent. The home seller
should be sure utilities are on so that equipment can be
operated.
Room
By Room
The buyer should try all lights and switches; turn all faucets
on and off, run shower, flush toilets; turn on the furnace
and central air conditioning (in the off-season, buyer should
hire a professional to certify proper functioning of both
heating and air conditioning); test all stove burners, oven
at bake and broil; run some ice cubes through disposal to
test blades; run dishwasher, washer, dryer through complete
cycles; open and close all windows and doors. In short,
try everything, even keys and the fireplace flue.
All deficiencies should be noted, and funds may be withheld
from the home seller by the settlement attorney for repairs,
if seller does not correct problems prior to settlement.
The selling broker will coordinate with the listing broker
and seller to make repairs before settlement, if possible.
Upon receipt of bills and notification that repairs are
complete, the attorney will release balance of funds to
the seller, if money is escrowed for needed repairs.
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