Making the most out of your home inspection
That beautiful home you just found could be a dream come true. Or there could be unseen problems that turn it into a nightmare after you've already settled.
To avoid any nasty surprises, take the time to do a thorough house inspection before you make your final offer. Even if the home is being offered "as is" with no repairs, and you know ahead of time that the home is a "fixer-upper," the inspection is still a wise idea. There are repairs that may be obvious and there may be still other repairs the seller will tell you about; but there may be others that you can't see, the owner didn't tell you about, or maybe isn't even aware of. When you're buying a fixer-upper, you do expect to have to make some repairs, and you factor that into your offering price. But if there are repairs you're not expecting, you may end up taking on more than you can handle.
When the home is being offered at a premium price, you obviously want everything to be in first-rate order. Here too, the home inspection is a valuable negotiating tool. If the home is being marketed as being in good shape, discovering that it has a bad roof or termites will give you a heads-up on what to expect, and an opportunity to offer a lower bid to compensate for the extra expense.
Undertaking a thorough house inspection can save you thousands of dollars, and help you to make a more informed bid. Another advantage of the inspection is that if you do agree to take on the cost of repairs, the inspection can be valuable in acquiring the additional resources necessary from your mortgage lender. You may be able to take out a mortgage that includes the cost of improvements.
You can do your own house inspection. Several mortgage lenders make available an inspection checklist that you can use in evaluating a home for purchase. ANZ has an excellent downloadable inspection checklist on their web site.
Alternately, if you know you are serious about a particular piece of property, you may wish to hire a professional house inspector to do the job for you. A trained professional will come in and manage a thorough inspection of every aspect of the home. Some inspection companies will even provide a structural guarantee that protects you against any major defects that become evident after the inspection report has been filed. The professional inspector may be able to evaluate areas of the home with which you are unfamiliar, and advise you on things like plumbing and wiring, the condition of the sub-floor and footings, and other areas that may not be readily apparent to the lay person. When looking for a professional inspector, a good place to start is with Archicentre, which is the advisory service of the Royal Australian Institute of Architects.
You may even be eligible for a free home inspection and advisory service. Some states have special programs for homeowners that are over 60 or are disabled; Victoria for example, offers a Home Renovation Service free of charge for qualified individuals.
After completing your inspection, make a list of the repairs and renovations that are necessary, or that you feel would be desirable. Contact tradespeople to determine an approximate cost for the repairs. If you use a professional inspector, they will prepare this estimate of costs for you. Equipped with this information, you will be in the best position possible to negotiate the right price for your new home.