|
|
|
|
| |
|
|
| |
|
|
| |
| The third most important decision you will make when purchasing a home | Written by Jim Hughes | When purchasing a home, the first important decision you will make is finding the right realtor and finding a home that will fit your needs. Second, you must select the right financing and locate an honest lending partner that will provide you the best rate available. Third, before you make any final purchase decisions, you must understand what you are about to purchase.
Most home buyers become emotional and very enthusiastic about their prospective home purchase before they've even closed the deal.
This is understandable. The home-buying process can be very trying, especially in New Jersey. Oftentimes, after many months of home shopping, bidding wars and financing, consumers just want to finalize the purchase and move into their new home. By the time attorney review arrives, they are not just making a financial investment in a house; they are making an emotional investment in their future. With emotions running so high, it's easy to lose sight of what's really important.
You are about to make what is probably the most significant financial investment of your life. Ironically, most consumers will conduct more research when purchasing a car or stock in a company than they do when purchasing a home. The only true information you will have about your future real estate investment comes not from the realtor, friends or the former home owner; it will come from your home inspector.
Your home inspector is the most unbiased person you will work with in the home buying process. He does not benefit if you purchase the home; his only objective is to provide you with all the information about the home so that you can determine the value of what you are about to purchase. Especially in New Jersey, the actual value of a home can be deceiving. Most New Jersey homes are 50 years old or more.
Throughout their history, parts deteriorate; owners use temporary repairs and problems get overlooked. On the outside, you may be purchasing the perfect home, but you are also purchasing all the maintenance and problems that will come with that home as well.
Costs can quickly mount: $3,000-$6,000 for a new roof; $5,000-$10,000 to repair a leaky basement; $1,500-$2,000 to treat radon; $2,000-$4,000 for a new air conditioner of furnace, or $3,000-$5,000 to remove the old oil tank buried in the back yard. The home inspection report will uncover these issues and provide you valuable negotiating power, or allow you to make an educated decision to walk away from negotiations.
No matter what you decide, a good home inspection report eliminates surprises and unlike a new car purchase, your home does not come with a warranty.
How you choose a home inspector is also just as important as the home inspection itself. When you are about to make a $200,000 or $500,000+ investment, the difference of $100 should not be a consideration.
A good home inspector will provide a good report complete with digital photos and an explanation of each detail of the home.
This is your owner's manual for your home. It not only will identify dangerous issues, current problems that need to be addressed and potential issues, it will tell you how to operate your house. If a pipe bursts and you don't know where the water main in your house is, you will learn the hard way the importance of knowing how to operate your house.
A good home inspector will go into crawl spaces; into those dusty, cobweb-infested areas you never want to go, but this is where many of the big problems can be found such as structural issues, termites or leaky gas pipes. Finally, ask about the instruments your home inspector will use. Technology has made its way into home inspection as well. Digital instruments can detect problems that cannot be detected by human vision, smell or touch. Small stress fractures, moisture behind walls and small fissures in gas pipes used to go undetected.
With the newer digital devices and sensors, these issues are sure to be found. Many budget-minded home inspectors still attempt to rely on old technology and big problems can easily be missed without the more sophisticated detection methods and tools.
Your home is may be the most important financial decision you will ever make, and it is most likely one of the most emotional decisions you will make for your future. Your home inspector is as important as your financial analyst or doctor. When you are building your team to purchase that home, it's important to find the best realtor and the best lender, but don't forget about the best home inspector. It may be the third most important decision you make when purchasing a home, but nothing else will matter if you end up paying too much, or worse, purchasing a money pit.
|
|
|
|
|
| |
|
|
|
|