Hello Everyone! I wanted to share with you all the different inspections that are advised/recommended to be done after reaching a ratified contract.
Once my buyers have found a home they really like and after we have put an offer and reached a written agreement with the sellers (called ratified contract), it is the time to schedule all the necessary inspections:
Cautious and safe buyers would want to schedule 2 or more of the following inspections (depending on the age and the condition of the home):
- General Home Inspection
- Termite Inspection (It is the one inspection buyers forget about the most and yet, it is very important!!!!)
- Mold Inspection in case the entire or part of the basement is not completely built above ground level
- Radon Inspection
- For homes older than 1978, lead-based paint and asbestos inspection
- Structural inspection (by a licensed Structural Engineer)
- Chimney inspection
- HVAC Inspection
- Roof Inspection (done by a third party Roof Inspector who could issue a certificate regarding the life expectancy of the roof). why not use a roofer? because he will try to sell you that the rood is in bad condition even though it might still good for 5 more years. A roof Inspector is not even supposed to recommend any roofing company. he will only give you a list of things needed to be taken care of.
Be aware that when you are buying a foreclosure, you are not even allowed, in some cases, to get out of the contract in case you find any big issues during the inspection. Thus, you need to do your inspections before writing an offer or participating in an online bid.
Inspections in my area could be very costly:
- General Home Inspection: around $350-$500
- Termite Inspection: $35 with Pest Now
- Mold Inspection: $250-$300
- Radon test : $100- $150
- Lead- based paint : $350-$400. Asbestos : an additional $300
- Structural Inspection: $500
- Chimney Inspection: $75-$150
- Roof Certification: $300-$400
- HVAC Inspection: $95-125
Once the buyers have a list of repair items they feel are important to them, I, their agent, will fill out "The Home Inspection Contingency Addendum/Notice" to ask for all of those items and my role is to negotiate on their behalf.
Once I have sent the Addendum, the sellers have 3 days to respond and once their respond, the buyers have another 3 days to respond until both parties reach an agreement.
The Home Inspection contingency is 7 to 10 days and the buyers can get out of the contract under that contingency.
The buyers could even get out of the contract without even sharing the inspection report with the sellers or without even doing/paying for a home inspection. It is called an Inspection period but a more appropriate name would be an Option period. In some other states (such as Texas), the option period cost the buyers a fee of $100 to $300. Here in Maryland, the option period is simply free of charge to the buyers.
If the buyers decide not to continue with the contract during the inspection period, it is their right to get the Earnest Money back.