A Spirited Guide to Navigating Your Home Inspection Report
Pull up a chair and grab a cup of coffee—or tea, kombucha, or heck, even a glass of bourbon (I'm not here to judge)—because we're about to dive into the wonderfully thrilling world of home inspection reports. Sounds like a party, right?
I know what you're thinking: “Fun? With a home inspection report? Are you out of your mind?!" Stay with me here, because we're about to demystify this daunting document and why it is so important when buying a home.
Step 1: Arm Yourself with Your Best Ally - Your Real Estate Agent
First things first, don't go into this alone. You’ve got your real estate agent, a battle-hardened champion of negotiations and paperwork. With them by your side, you won't just survive this ordeal, you'll thrive. Your agent has read hundreds of these documents and will be able to help you navigate through the 40 page book you just paid $450 for.
Step 2: Brace for Impact
Now, when you first lay eyes on your home inspection report, it might feel like you've just been handed a script for a new horror movie. But relax, that's just the nature of the inspection beast. Inspectors are kind of like the CSI of homes—they're paid to find every little thing that's not perfect. So, expect your report to be, shall we say, "overly detailed."
It's key to remember that this doesn't mean your dream home is actually the sinking Titanic. Every home, even new ones, will have some issues. Your job is to sift through that report (with the help of your agent) and pick out the real deal-breakers from the cosmetic touch-ups or more common repairs that might not actually be a concern for you.
Step 3: Sort Out the Small Stuff
Now that you're breathing again and you have your wits about you, it's time to break out the highlighter and get to work. Let's start with the small stuff—loose doorknobs, peeling paint, a squeaky floorboard. They might seem ominous in the report, but trust me, they're more like mosquitoes than dragons.
In fact, some of these tiny tasks might even make great DIY projects once you move in. Imagine the satisfaction when you silence that squeaky floorboard, you DIY warrior, you! Foregoing the small stuff during the inspection negotiations may allow you to ask for more important items, and lessens the chance of the deal falling through from the seller backing out.
Step 4: Red Flags - What to Look For
Alright, now that we’ve done battle with the pesky mosquitoes, it’s time to turn our attention to the potential dragons in the room. Here, we're talking about major issues like structural problems, mold, plumbing, electrical issues, or a faulty roof.
These are the things that could cost you big bucks down the line. If your report reveals any of these substantial issues, it's time to call in the cavalry—consult with your real estate agent and consider getting additional experts to come in and give their opinions. Remember, inspectors are not specialized in any one area of a house and give a “general” overview of their opinion. Getting a specialized and licensed contractor to come in and give their opinion for the bigger items that pop up on the report is highly, highly recommended.
Step 5: Protecting Your Earnest Money
Now, you might be asking, "What happens if there's a major issue?" Well, here's where your earnest money comes into play. Think of it as your "home-buying insurance". If something major does come up and you decide to back out of the deal, the terms of your contract usually protect this deposit.
In most cases, as long as you're within your inspection contingency period, you should be able to retrieve your earnest money without a hitch. In Indiana, you can recoup your earnest money if the seller is unwilling to repair something with the house that is a material defect. This is up for debate as to what falls in this category and what doesn’t. But in general if the defect significantly lowers the value or safety of the property if left unrepaired, your earnest money should be protected if the deal falls through. And remember to keep your real estate agent in the loop—they’ll be your steadfast guard in ensuring your earnest money is secure.
Step 6: Negotiating Repairs and Price Adjustments
If you find serious problems but you're still smitten with the house, don’t despair! Your agent can help you negotiate repairs or a price reduction with the sellers. It's a delicate dance, but with your agent’s wisdom and your newfound knowledge, you'll be on your way to a solution that benefits both sides of the deal.
As you’ve probably gathered by now, reading your home inspection report may seem about as fun as plucking your eyebrows. But with these tips, it's more than manageable—and it’s a huge benefit to be able to learn EVERYTHING going on behind the scenes in your new home. Just remember, every home has its quirks. And when you find "the one," a little bit of quirkiness just makes it feel more like home.