A home buyer proceeds for a home inspection during the “due diligence” period after the seller has accepted the offer. A detailed professional review covers everything a buyer missed, such as electrical, plumbing, roofing, HVAC, and structural integrity. 9 out of 10 US home buyers opted out of a home inspection as the findings allowed the investors to lower the price or negotiate for necessary renovation.
However, the latest home inspection trends go beyond suggesting internal and exterior flaws. An unbiased and specialized report prepares the buyer financially for future repairs for hazards and remodeling costs, along with an overall idea of the community (crime rate, walkability, accessibility). For people looking for a rental property, a home inspection gives a basic idea of the future investment in the house through the primary checklist of the report.
So, be it an investment property or a first-time home, a home inspection report is the deciding factor for buyers on whether this home is the right purchase for them.
Photo by Porch
Contrary to the popular belief that a home inspection is necessary for derelict houses, investors and buyers are simultaneously keen on going through a home inspection.
Real estate agent Brady Bridges from Fort Worth, TX, has been monitoring changes for a long time. He commented “Realtors and home inspection companies upped their property examination game through drones to portray the neighborhood’s image, location analysis, and upgraded inspection tools.”
Even the extraordinarily active and competitive markets such as DFW, Tampa, and Detroit saw buyers preferring property and community analysis to take advantage of the 7-day walkaway period. A proper examination blesses the potential homeowners with an idea of the neighborhood and surrounding facilities- school districts, art centers, business zones, neighborhood crime, and recreational experience.
Gone are the days when the buyer and investors had to be present in the vicinity while the inspection was going on to see the faults. Reports created through the latest techs include pictures, videos, and infographics about future renovation costs – making it easier for clients to understand the condition of their potential new home.
Upgraded technologies such as drones, thermal imaging cameras, cloud drives, and remote inspection software let the buyers the best of home inspection in the comfort of their homes. For specialized home inspections, companies use robot cameras for sewage, termites, plumbing, basements, and other difficult-to-reach areas, such as crawl spaces, attics, and tight ductwork.
Hence, these robots provide investors with a detailed view of the property, helping them to identify potential issues that cost thousands to repair- structural damage, pest infestations, and insulation problems.
Traditional home inspections cost $300-$500 depending on the property size, covering essential elements such as electrical lines, roofing, plumbing, moisture, etc. However, current home inspection companies provide special and costly examinations- covering the neighborhood data, termite, sewage, soil pollution, lead, and pest inspections. These detailed reports give you an idea about the schools, crime rate, communal spaces, restaurants, and business opportunities.
Since community and interior pollution kept increasing every day, a thorough home inspection provides soil tests ($700 – $2,000), Lead-based Paint examination ($250 – $700), and Radon check ($145 – $700). Such investigations ensure the safety of chronic illnesses, toxicity, carbon monoxide poisoning, and other life-threatening incidents.
As an investor, you can’t close a home-buying deal unless you know the value growth, rental options, and possible renovations or repairs. A home inspection contingency allows backing out from the agreement free of penalty within a specific timeframe or negotiating for a lower price. In the US, on average, HVAC issues decreased the price by $1,250, while air conditioning faults reduced the price by $500.
As a meticulous home inspection report indicates whether an investment property will break the bank, state loans and specialized lenders lean more toward the report. People looking for property diversification and tax cuts through a new real estate investment use FHA, USDA, and VA loans. These lenders won’t release the money unless the proprietor shows a professional home inspection report. Even mortgage companies seek these reports before granting the funds.
Since 46% of buyers used the home inspection report to negotiate for a lower price, you will get a good ROI upon taking the help of a professional home inspector. Even if you are looking for a forever home, a detailed inspection ensures a haven for decades.