The value of a general home inspection is incomparable. Purchasing a new home is stressful enough without further worry about the condition of the property you’re buying. The cost of an inspection (paid by the buyer) by a professional is minimal when you consider all the knowledge you will gain about your new home - average price for a $200,000 home is in the range of $300. Most Realtors strongly recommend that a buyer obtain a home inspection on all resale properties and home inspections are also available for new homes.

The home inspection is not the same as an appraisal. The inspection is meant to evaluate the structural and mechanical condition (not the market value) of the property. The inspector’s findings will be based on observable, unconcealed structural conditions. The inspector will not normally guarantee or warrant the condition of the home.

It is strongly recommended that the buyer accompany the inspector when he inspects the property. You can expect the inspection to take anywhere from 2 to 5 hours depending on the size of the home. During this time, the inspector will give you invaluable maintenance tips, answer all your questions, and give you information regarding further possible problems. You will then be in a better position to understand his written report.

The professional home inspector has been trained thoroughly and is fully educated regarding the various plumbing, electrical, and building codes in the counties he works. A home inspection will encompass all the following:

• Exterior walls, roof, driveways, patios, porches, decks, and fences

• Foundation, sub-flooring, attic and crawl spaces

• Interior walls, ceilings, floors, doors and windows

• Kitchens, baths, and appliances

• Plumbing and electrical fixtures, lines, switches and receptacles

• Heating and air conditioning systems, insulation, vents and ductwork

• Water heaters, fireplaces and chimneys

• Gutters and drainage

• Estimated life/replacement costs

• Component and system maintenance guidelines

Every inspection should include a written evaluation of all of the foregoing. The report will not include a recommendation as to whether or not you should buy the house, nor will it evaluate the purchase price. If major flaws are uncovered, it should give you some idea of what it will cost to repair or replace the problem.

A reputable home inspector will never offer to perform needed repairs and should not refer you to a contractor to perform such repairs.

The report may serve the following purposes:

• To identify problems before you purchase a home to prevent unpleasant surprises later.

• To enable you to get out of a contract (and get your deposit refunded) if serious problems are found.

• To help you negotiate an adjustment in the purchase price if you want to buy the house in spite of uncovered problems.

• To get the seller to agree to pay for needed repairs, either before the sale or after the sale using escrowed funds.

• To make you feel confident about going ahead with the purchase.

In many states, a home inspection is a contingency in the contract (usually for 7-10 days). The buyer will remove this contingency assuming he gets a satisfied home inspection report. In the case of problems, the buyer (through an addendum written by the Realtor) may ask the seller to repair/replace certain items. The seller may then agree or disagree. Sometimes the seller agrees to repair/replace some things, but not others. The buyer may then accept what the seller will do and remove the contingency. If the buyer doesn’t accept the seller’s response, then the contract will become void.

You may also obtain additional inspections, such as:

• Septic tanks, wells, or sewer lines.

• Common areas (in the case of a condominium or cooperative).

• Full or partial structural inspections.

• Environmental inspections (FRT, asbestos, lead-based paint, radon, formaldehyde, electromagnetic fields, USTs, UFFI-insulation, toxins in soil, impurities in water systems).

• Probably anything else you can think of.

I can give you names of several reputable home inspectors in the area you’re buying... I'm here to help!

What is the difference between "pre-qualified" and "pre-approved"?
If you are "pre-qualified" you have determined, with a loan officer, what price you can afford based on the down payment, your debts and the amount the mortgage company will approve for your mortgage. Being "pre-qualified" is only a determination of your probable credit. If you are "pre-approved", your credit, employment and funds have been approved by the lender.

What are closing costs?
Closing costs are an accumulation of charges paid to different entities associated with the buying and selling of real estate. For buyers, they are usually about 4-6% of the total sales price of a property. Some of the closing costs you might encounter are: application fees, appraisal fee, county taxes, credit report, discount points, documentation fee, escrow fees, homeowners' association fees, loan fees, mortgage insurance, origination fees, tax registration and title insurance premium.

What is a point?
One point is equal to 1% of the new loan amount. Whenever government regulation, state usury laws and/or competitive practices prohibit the lender from charging a rate of interest that would make the real estate loan competitive with other fields of investments, the lender must seek some method of increasing the yield for the investors. By charging "points", the lender can bring the real estate loan up to those other investments.

What is earnest money?
When you make an offer, you will need to put up an earnest money deposit as a sign of good faith that you are seriously interested in buying a home. That deposit becomes a part of the purchase price and is held in a trust account until there is full acceptance of the offer. Typically, an earnest money is 3-5% of the offer amount.

What is title insurance?
Title insurance protects the named insured against loss because of defects, liens, encumbrances, adverse claims or other matters not shown or disclosed to the new owner that attach before date of policy.

Is VA or FHA financing unfair to sellers?
FHA and VA loans provide purchasers the opportunity to buy homes with minimal cash investment and at lower interest rates. The result is a larger market for sellers, who also benefit by receiving all cash for their equity.