How to Interpret Home Inspection Reports

Now that you've had a home inspection, make sure you understand the significance of its findings before you buy.

Difficulty: Moderate

Instructions

Things You'll Need:

• Financial Calculator
• Inspectors
• Real Estate Attorneys
• Notebooks
• Writing Pens
• Flashlights
• Ladders
• Ladders
• Flashlights
• Notebooks

1. Review the inspection report. Get details about any disclosed findings.

2. Pay special attention to items in the report that indicate potential health hazards, such as a cracked heat exchanger in the furnace, lead paint or asbestos.

3. Look for other red flags indicating expensive repairs in the near future, such as a faulty roof or cracks in the foundation.

4. Provide the seller with a copy of the inspecion report. Notify seller in writing of the findings and needed repairs.

5. Get estimates for repairs. In writing, request that the seller adjust the selling price or make necessary repairs before close of escrow.

6. Decide whether the selling price plus any repair costs exceeds your budget.

Tips & Warnings

• If you have allowed for a contingency on the findings on any inspections and you do not wish to complete the transaction due to items discovered in the inspection, you have a legal way out of the contract to purchase the home.
• Inspection reports will usually run 10 to 20 pages.
• Keep in mind when reading the report that no house is ever perfect.
• Many financial institutions will also require a termite inspection; this will cost between $50 and $100.
• Contact an inspector specializing in detecting lead paint hazards for any home built before 1978.
• If you are unfamiliar with construction and building codes, it is wise to have a contractor review the report.
• Be leary of inspectors whose reports have an alarmist tone.

on 9/20/2006 Make every effort to be with your home inspector during the inspection. Not only will he point out potential issues, he will also tell you things about your home that you might not realize (like where shut off valves are, how to reset the furnace or hot water heater).

on 11/22/2005 Please visit our Web site at www.termicam.com.

on 11/22/2005 We bought a home that was vacant and we paid for a home inspection. We went over the report thoroughly with the inspector - but, we found out soon enough that he did not test the plumbing system, and we ended up with a costly expense. Lesson learned!