Do I Need An Inspection If The House Is Being Sold "As-Is"?
Since short sale properties are typically sold in "As-Is" condition
many buyers mistakenly believe they shouldn't seek out an inspector.
Before going it alone, it is important to know what type - or types - of
inspections you need and what they can - and can't -do for you.
For the purpose of this article, we will be discussing optional home
inspections. The scenario usually goes something like this; you find a
potential short sale property and have decided to make an offer --
contingent upon the inspection. After all, you want to make sure you have the
required funds to bring the property up to par with the local area
either for resale or rental.
Having a thorough inspection is also another excellent negotiations
tool for use with both the buyer and bank; banks dislike properties in
need of extensive repairs because they recognize the additional time and
cost required to make the property appealing to potential buyers. So,
being the savvy short sale investor, you decide to hire an inspector.
Time for a Reality Check
At this point you might assume the inspector will crawl through every
crook and cranny searching for every minor detail and defect. If you
have ever sold your own home it can certainly feel that way. The actual
quality of the inspection is highly dependent upon the individual hired
but in every case you can expect to pay an additional charge if you
desire things like water quality testing, testing of the septic or sewer
system for anything other than major defects, and general testing of
electric, AC/Heat etc...most basic inspections only test whether the unit
comes on not whether it works efficiently or not. This brings us to the
first important point to keep in mind...if you want more then make sure
you stipulate it and expect to pay more.
No Guarantee
Many people unwisely assume an inspection provides a 'guarantee' but
read the fine print -carefully. If a major problem is missed during the
inspection you will still be out the cost of repairs. The vast majority
of home inspectors will refund your service charge if they miss
anything - but specifically state they are not responsible for further damages
or costs. Don't assume they are flawless- instead, use inspections
like a negotiation tool.
In many cases the seller might be unaware or just grown accustomed to a
problem and the bank is more likely to consider a low offer on a
property in need of improvement or repairs. Having an inspection
performed...even on an "As-Is" sale, provides an objective measures and
negotiation strategy to make the buyer and bank aware of potential problems and
the likelihood that other buyers will encounter the same.
Rather than thinking of independent inspections as a "security" or some
type of "insurance," instead consider them a tool in your negotiation
strategy.
When you are ready to buy your next home in Northeast Florida, including St Augustine, Ponte Vedra, and South Jacksonville, visit http://www.NorthFloridaHomeSearch.com