 |
||
Buying A House: Inspections And SurveysGetting a professional inspection of a property is an essential part of the process of buying a house. It is the only way that you can be sure that the property you are buying is actually worth what you are paying for it, and that there are no structural problems which will cost you in the future or which could make the building unsafe. You will need to hire a professional inspector to look over the property, usually after you have signed a contract. The terms of your contract will determine what will happen if any problems are found, so it is worthwhile to think about this before signing a contract.
The inspector will examine the house's structure and will produce a report noting any problems that they find. This will usually cost you upwards of 300 dollars, although the exact costs will depend upon the size of the property. A thorough inspection will normally take at least an hour, and you should arrange it at a time when you will be able to attend. The inspector will then be able to point out their findings to you and to explain their significance. It is often difficult for a layperson to understand a written inspection report, and being on the property with the inspector will allow you to ask them about any points you don't understand.
If the inspector discovers any problems with the property, then your next move will depend upon whether or not you have paid an option fee. If you did pay one, then you can back out of the sale and lose the option fee, negotiate with the owner to try to get them to pay for the repairs or lower the price of the house, or simply go ahead with the sale as agreed. Your choice will depend upon the extent of the problem and the cost and difficulty of the necessary repairs.
If you did not pay an option fee, then the possibilities depend upon the wording of your contract. If the contract stipulates that the seller must fix certain named problems if they are found during the inspection, then you must continue with the purchase and the seller must pay for the repairs. You can pay for a second inspection in order to check that the repairs have been carried out properly.
If there was no such stipulation in the contract or if the problems encountered are not included in the list then you are still required to buy the house, although there may be a clause in the contract that allows you to pull out if the repairs will cost more than 5 percent of the price of the house. This is the weakest possible position that you can be in as a buyer, so it is best avoided while drawing up the contract. The seller is under no obligation to pay for repairs or lower the price of the property, although you may be able to negotiate some sort of arrangement with them.
If there are significant structural problems with the property, then your mortgage lender may not be willing to hand over your loan until they have been remedied or the funds for the repairs have been placed in escrow as an assurance that the necessary work will be done. You may be able to add the costs of the repairs to your mortgage if you are going to have to pay for them.
The inspection company may be able to perform a termite inspection as well as a structural one; otherwise, you will have to hire a separate specialist pest control firm. A termite inspection usually costs about 75 dollars, and is required by most mortgage lenders. If there is a termite problem then it can usually be fixed quickly and for about 700 dollars. You will need to negotiate with the current owner to determine who should be responsible for this cost.
Your mortgage lender will also need to check the property for themselves before they finalize the loan with you. They will send a surveyor to look over the property and assess its value. This will cost you approximately 300 to 400 dollars, which you will pay with the closing costs. The survey is used by the lender to check exactly what the loan is being used to buy. The surveyor will make sure that the property is worth what you are paying for it, and will produce an official diagram of the property lines.
Ratings
Ratings
Rating: 0.00/10 (0 votes) Comments
|
