Tips for Buyers to Have a Successful Property Inspection

How to get the right information in an inspection and use it in negotiations for your home purchase.

Throughout the home buying process, you will encounter a number of expenses including, but certainly not limited to, an appraisal, transaction fees and a survey – but none is more important than the property inspection. Dollar for dollar, there is no better use of your money, as a property inspection will not only outline the strengths and weakness of the house you are buying, but will give you a powerful negotiating tool if significant defects are uncovered.

Choosing the Right Type

When you sit down with your real estate agent to prepare your offer, he or she will go over the different types of inspections you can choose from. While there are different inspection options – building, pest and asbestos, among others – you first want an independent property inspection.

The best inspectors provide three different types of home inspections – the basic structural only inspection, the standard inspection, and a premium inspection report (the names may differ depending on your location). There’s no difference in the way the inspector approaches the property or with the report he generates – it’s how that information can protect you that makes it unique.

A property inspection is arguably the more classic option. Based on the report you receive, you will send a notice to the seller asking for either certain items to be fixed prior to settlement, or a dollar amount be credited toward your final settlement costs.

Choosing Your Inspector

Every individual involved in your home buying process must be the best. This is likely the biggest investment of your life and understanding what you are getting yourself into is of the utmost importance. With this in mind, be sure you choose a tried and true inspector you can trust to overlook nothing and provide your report in a timely, organized manner.

The first person to talk to for referrals is your real estate agent. Most agents have likely encountered the good, the bad and the ugly of the home inspecting world and found a few professionals they trust. Make sure your inspector is insured. Real estate agents live and die by their reputation, who they refer is a direct reflection on their own professionalism so you can be confident you’re getting the best in the business.

Using the Report

After the inspector has gone through the entire property and provided the report, take time to review it carefully and ask any questions to either your agent or the inspector so you fully understand what you're reading.

As you read the report, it’s important to remember the inspector is acting as a primary care physician, and should anything need further evaluation you’ll be referred to a specialist. If the home inspector finds evidence of mould or a pest problem, for example, they’ll recommend to you talk to a mold abatement specialist or exterminator to discuss the work needed to alleviate the problem.

Every negotiation is unique and should be handled as such. That said, there are general guidelines when handling a post-inspection negotiation. First, you must understand any limitations you have already agreed to in your contract and in particular the building inspection clause. Secondly, if there are any major components that are obviously broken and in need of major repair or replacement – such as  roof and windows – go after those and don’t sweat the small stuff. You want to make sure you take care of the important items that are needed for your house to function optimally.

If there aren’t any major items to take care of, it’s time to sweat the smaller stuff. Create a list in order of what you consider most important to least, and present it to the sellers and make sure they understand where your priorities lie.

Finally, if you prefer to oversee the repair or update work yourself and opt for a credit from the seller

Keep in mind … It is important to remember several things during and after your inspection. First, inspectors can’t see through walls. While their inspection is certainly thorough, it does not include things they can’t see. Also, an inspection assesses the property as it is that day. Things change, and so do the components within the house.

Most importantly, never forego your right to an Independent Property Inspection