Four Things You Need to Know if Your Pre-Purchase Inspection Fails
If you are a potential home buyer then you know you will need to have a pre-purchase inspection done with companies such as Safe House Property Consultants prior to closing on the home. The problem is, most people stop at that point. They don't consider what will happen if the inspection fails. Before the inspection begins, there are four things you need to know about what will happen if that pre-purchase inspection fails.
Inspection Contingency Clause
One of the first things you need to know is how an inspection contingency clause can help you if the pre-purchase inspection fails. This clause makes it clear about who will pay for any repairs found during the inspection, how long they have to make those repairs, or if a certain amount of money will be taken off the price of the home for the required repairs or issues. This clause can be put into your buyers contract by your real estate agent, legal representative, or by the sellers agent.
Failing the Inspection Doesn't Stop the Purchase
You should know that failure of an inspection, or point on the inspection list, will not stop the purchase of the home. If a part of the inspection fails, it simply means that the home does not mean the standards on the inspection list. This means that repairs may need to be completed prior to the close of the home. The repairs are up to the buyer. In essence, the main purpose for the inspection is to determine the market value of the home and compare that with what you are spending on the home. It ensures you are getting what you pay for.
Pest Inspections May Not Be Included
A misconception about the pre-purchase inspection is that it includes pest inspections. This type of inspection will look for damages to the home that require repairs. If there is damage to the outdoor deck, the inspection will note that. It may not state that it was caused by termites, water damage, or simple age. It will be up to you or the home owner to determine where the damage originated and how to go about fixing that. You will need to have and refer to the pest inspection reports as a separate issue.
Failure Doesn't Automatically Mean Repair
You may believe that if the pre-purchase inspection fails you will need to wait for repair work. In fact, you may choose to not have it repaired at all depending on the issue. For example, you can use the previously mentioned inspection contingency clause to state what you will overlook and what you would want repaired prior to the closing of the house purchase. The key thing to remember is that if you decide to avoid a repair that you have it noted in writing and agreed upon by yourself and the house seller.
These are just a few of the things you need to know if the inspection fails. Remember to ask any questions about the inspection prior to the inspection date.