Friday, June 1, 2007

Inspections

Inspections begin with a primary General Inspection which should be done by a State Licensed Inspector. This license originates from The Texas Real Estate Commission (T.R.E.C., just like a Realtors license). An additional choice is having the inspector also be a Structural Engineer. I prefer having your inspector be both licensed for the General Home Inspection and have a Structural Engineering background.

Expect to pay anywhere from $250 to $600 the day of the inspection, depending on who does the work and how big the house. Structural Engineers tend to have a ''rule of thumb'' hourly of $150 in Austin, Texas. Keep in mind, if a General Inspector is not a licensed Structural Engineer, your report might be deferred to a Structural Engineer for further information about issues on the property, especially if the property is in an older part of town. This could lead to another trip, more time, and more money.

During all inspections, I also believe only the Inspector and the Buyer should be on the property, so attention can be paid to the work being done (questions, knowledge gained about the house). Emptying a property can often present problems, so be courteous to the current owners and their needs (especially if kids are involved - nap times, etc).

If your inspections require any foundation issues, refer to an earlier posting regarding this issue.

General Inspections can result in further studies on specific areas of the house by more detailed professionals. For example, you might have a licensed Cooling & Heating business do an investigation on the equipment ($75 for one unit & $95 for two units), the Stucco on the exterior further reviewed, have a roofing company inspect the specific type of roof you have (free of charge but better to pay trip charge of $30-$50), specialized mason review issues around a chimney ($120), or a sprinkler system inspection (around $30).

Additional inspections NOT covered by your "General" could be; Wood Destroying Insect Inspections ($75 for report), Pool "Opinions" on equipment (hourly of around $85), Septic Inspections ($200).

At the very least, Buyers should arrive for the last 30 minutes of the inspection. The last 30 minutes allows the Buyer and Inspector a chance to cover the findings, and even allow the inspector to point out his ''big ticket items'' or items of concern. If a Buyer simply reads the type written report, it tends to be too much, especially if the property is in an older part of town. These inspections are key times to learn more about the home you’re buying. Be sure you are available to review the information and ask questions. At the very least, set up a phone conversation to review with your inspector.

It is imperative to complete the necessary inspections for the type of property being purchased before the end of the option period. If you find a surprise regarding the integrity of the house from one of your inspections, you can negotiate or terminate the contract with the intention of getting all earnest money returned and proceed to find another home.

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