No mortgage company requires a home inspection, but it may still be advantageous for you to get one. Here's why.
1. Find Out About Your New Home
A good home inspector will go over the property with a fine-tooth comb. You, the buyer, are encouraged to be there for the inspection so you can ask questions. Here is your chance to ask, "What's that thing on the side of the furnace?"; "How old is the roof?"; or "Where does that cord go?" The inspection will help you learn about the house and give you a better idea of what you are signing up for!
2. Negotiation Power
After your inspection, you can negotiate repairs with the seller. For instance, if the home inspection shows the hot water heater doesn't work properly, you can ask the seller to replace it. Alternatively, you can ask for a monetary credit at settlement (so the seller is still paying for it, but they don't have to go through the work of replacing it). In some cases, I've even seen buyers negotiate a cheaper purchase price after inspections.
3. Get Out of the Deal
If anything comes up in the inspection that makes you say, "Hmm, not so sure I want to buy this house anymore...," you don't have to! If you walk away from the deal as a result of any elected inspections, you get back any deposit money you've already given. It's also good to have a back-up plan in case something else goes wrong - like you and your partner decide to break up, so you no longer want to buy a house with them (hey, it happens!). You can always fall back on the excuse of, "Wasn't please with the home inspection," and pull out of the deal.
A home inspection costs around $400-$600 dollars, but in this Realtor's opinion, it's money well spent. When I bought my house, I got a home inspection. The seller didn't agree to any repairs, but I went through with the purchase anyway. Now I know to budget for a new roof in five years, to replace my chimney liner, and the water stains in the closet are due to a leaky rain gutter. For just a few hundred bucks, I now have a deep understanding of my home that I would have never had!
