Home Buying in Huntington>Question Details

miss08, Home Buyer in Huntington, NY

when does the inspection take place in the home buying process and who pays (buyer/seller)?

Asked by miss08, Huntington, NY Thu Mar 5, 2009

If the buyer pays and there are serious issues w/ the property (enough to end the sale) does the buyer get credit toward those costs?
Is it acceptable to ask for the inspection to take place after the contract signing but before the inspection?

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13
Voices Member’s answer
Dear Emmanuel, You make a lot of assumptions in your letter.

"Sounds as if you have had some bad experiences with Inspectors",
I know of these firms from other Realtors who got burned. It is always the same firms that fail homes that shouldn't have failed and they have the multiple inspection policy.

"However you, of all parties in the transaction, should be aware that they certainly don't last long if they do."
When you are getting multiple transactions from one customer, as you yourself know, it saves on a lot of overhead. The customer feels good that they saved on the second transaction, when possibly a second or third transaction would not be necessary if they weren't frightened by the first.

"I believe most homebuyers out there are intelligent enough to determine the difference."
Buying a home is a very rare occurence, and most buyers are intelligent enough to know they need a professional to help guide them. That is why they call a home inspector. It wouldn't occur to them that that they could be taken advantage of, which is why I gave the heads-up.

In NY State, home inspectors must be licensed. A buyer in NY would have redress if an issue was not addressed at the inspection. I always recommend a buyer attend the inspection so they learn about the home they are about to purchase. The inspector I usually recommend goes over everything with the buyer, including what is good about the home in plain, easy to understand language. The buyer knows what needs to be addressed immediately and what will need to be addressed in the future. Some items are expensive, and some not, which gives the buyer a clearer understanding of the home thay are about to purchase. Everything goes into the written report, major and minor, but now the buyer can tell the difference.

I am not aware of how it is in Texas where you are from, so I don't comment on questions from your residents that would only confuse them. I can't believe how many out of state agents have informed this Long Island buyer about their areas protocols.

Carol Bromm, SRES, CBR
Prudential Douglas Elliman, Babylon
631 422-8269
1 vote Thank Flag Link Fri Mar 6, 2009
Hello Carol,

Sounds as if you have had some bad experiences with Inspectors, Re:

"Beware of home inspectors that trash the home, and then give you a coupon for $50 off your next inspection. Unfortunately with some, that is their business model. "

Or was it possibly that the home had obvious problems and the Inspector properly performed their job and provided a thorough report? It is always possible that there may be Inspectors out there who try to use that as their business model. However you, of all parties in the transaction, should be aware that they certainly don't last long if they do. Unfortunately we have many to many Inspectors out there whitewashing/softsoaping (downplaying or purposely not reporting) issues in an attempt to obtain more business from RE Agents. I would personally rather have a very thorough report from an Inspector rather than a soft report. I believe most homebuyers out there are intelligent enough to determine the difference.

If you wish to speak about your experience sometime feel free to give me a call.

Emmanuel J. Scanlan
PS Inspection & Property Services LLC
http://www.psinspection.com
214-418-4366 (cell)
TREC License # 7593
International Code Council, Residential Combination Inspector #5247015-R5 (Electrical, Mechanical, Plumbing and Building)
Texas Residential Construction Commission, Third Party Warranty Inspector #1593
Texas Residential Construction Commission, Inspector, County Inspection Program
Texas Department Of Insurance, VIP Inspector # 08507061016
Hayman Residential Engineering Services, Field Technician
CMC Energy - Certified Energy Auditor

Knowledge is power, but sharing knowledge brings peace!!
Web Reference: http://www.psinspection.com
1 vote Thank Flag Link Thu Mar 5, 2009
The property inspection will usually take place a week or two after the contract has been agreed upon. The buyer pays for the inspection and will 99% of the time not be reimbursed for the cost of the inspection. Our real estate purchase contract in OK lets you ask for an amout of "repair costs", but if the repairs needed exceeds that requested amount you can either pick out the repairs you want done, ask for all the repairs to be done, or walk away.

Some good friends of mine found out through an inspection that a home they were going to buy needed 20-30K in foundation and other structural repair. They chose to walk away rather than ask for the work to be done. In their situation the $250 they spent on the inspection was well worth it.
1 vote Thank Flag Link Thu Mar 5, 2009
Answer to your first question:
It depends on where you live and what your offer says. Purchase and Sale Agreements differ from county to county and state to state. NY has some of the toughest laws in the country. Although your offer may state that you don't get the money back for an inspection, that verbage can be changed to say that if you don't approve the Home Inspection, you get all of your inspection fee returned to you from the seller. That doesn't mean a seller will accept this conditional change. If you haven't throughly read the Purchase and Sale Agreement (Offer form), ask your Realtor for a blank copy to read. If he won't give you one, ask the Realtor for an appointment for you and a significant other to meet the Realtor at their office so you can read what it says and understand it. Read every word of it. Then you will know what the Purchase and Sale Agreement actually says. If you are already in a transaction, get a copy of what you have signed so you can read it and find out if you are responsible for the inspection costs. It is better to lose the inspection fee than to buy years and thousands of dollars of headaches and problems.

Question #2 I think you are asking if you can make an offer contingent upon an acceptable inspection? Yes, and you should. It sounds like you have some doubts about the condition of the property. You can make the offer contingent upon your total acceptance of the property inspection and ask the seller to reimburse you if you don't accept the inspection. You may want to put a dollar amount on this so the seller doesn't feel like he's being taken advantage of. Maybe you just don't want to buy a property that has a certain amount of work that needs to be done. Figure out what your threshold is. If you can't afford to fix much after closing, look at properties that are in better condition. If this is the case, keep looking.

Good luck!
1 vote Thank Flag Link Thu Mar 5, 2009
It all depends on what you negotiate; however, most sellers probably won't offer to pay for your inspection, and many won't agree to paying for it even if you ask them to do it. Nevertheless, it never hurts to ask.
1 vote Thank Flag Link Thu Mar 5, 2009
You can make the contract contingent on the inspection and place a certain amount of days for your due diligence (7-10 days). That way, if there is anything wrong and the owner does not want to decrease from the price or fix it, you are not bound to the contract.

Purchasing a home is one of the largest purchased in our lives, so always ask questions, always do your homework, stay on top of everything. If you feel you are not being properly guided then listen to your intuition and work with another agent. There are no stupid questions as nothing should be left to assumption.

Always add an inspection contingency...I am not an attorney and you should always have your attorney review all of your documents.

A Fabulous agent will always advise you to do this.

Jennifer
0 votes Thank Flag Link Mon Aug 15, 2011
The Long Island agents are all correct, the inspection takes place a soon as possible after the offer is accepted, before the contract is signed. Bear in mind that UNTIL the contract is signed the seller can accept another offer--until you have the contract signed by both sides you are not locked in for this house. I remind my buyers and sellers that the inspection is meant to determine if the house is structurally sound and the heat, electric and water are all in working order, and is not an opportunity to renegotiate the price of house because of cosmetic defects and normal wear and tear, especially in an older home. Presumably you have already looked the home over, noted it's condition, and made your offer accordingly. I doubt your attorney will allow you to sign the contract before the inspection takes place. I have never had a buyer ask for the seller to pay for the inspection, although I have had sellers have the house inspected themselves beforehand.
0 votes Thank Flag Link Fri Mar 6, 2009
On Long Island inspections are done once you and the seller are in agreement with the purchase price and you actually have an accepted offer. The buyer pays for the engineer. Should anything turn up to be a big issue you can ask the seller to repair or credit you and you do the fixing. Keep in mind that if the seller has representation so should you.

Anna
0 votes Thank Flag Link Fri Mar 6, 2009
As a buyer, we would advise the inspection be done after you have reached an agreement with the seller but before any additional deposit money is places in escrow. This way you will know exactly what the issues of the home are prior to getting more involved in the buying process.

Good luck
0 votes Thank Flag Link Fri Mar 6, 2009
In Long Island, New York..the buyer pays for the Home Inspection, and if there are issues with the house, buyer will ask the seller to fix the issues or simply ask for the credit. The Home Inspection is done once the offer is accepted and prior to signing of the contract.
Please feel free to email me or call my cell# 631-889-2997 for any questions you may have... Good Luck..
jzilpelwar@yahoo.com
0 votes Thank Flag Link Fri Mar 6, 2009
The inspection takes place after the price is negotiated. It is for you to decide if you would like to move forward with your purchase. Although you spent several hundred dollars, you saved a lot more than if you went through with the purchase and discovered too many problems after you took title.

If there are issues discovered during the inspection, such as leaks or infestation, it is expected that the homeowner will take care of them and your attorney will specify that in the contract.

The only time a homeowner will consider reimbursing the buyer for their inspection, is when a higher offer comes in for the home before it is fully in contract, and the seller decides to take it instead.

Beware of home inspectors that trash the home, and then give you a coupon for $50 off your next inspection. Unfortunately with some, that is their business model.

Carol Bromm, SRES, CBR
Prudential Douglas Elliman, Babylon
631 422-8269
0 votes Thank Flag Link Thu Mar 5, 2009
Hello Miss08,

Good answers below and I do understand your concern regarding expenses paid if the deal fails to go through. I run into this occasionally with my clients. As a suggestion, when you are selecting your Inspector ask them if they provide discounts for return business. I offer my clients healthy discounts for the situations where they do walk away from a home deal and need an inspection on another property. Any conscientious Inspector will understand this and work with you on the cost of inspections.

Good luck on the house hunting!

Emmanuel J. Scanlan
PS Inspection & Property Services LLC
http://www.psinspection.com
214-418-4366 (cell)
TREC License # 7593
International Code Council, Residential Combination Inspector #5247015-R5 (Electrical, Mechanical, Plumbing and Building)
Texas Residential Construction Commission, Third Party Warranty Inspector #1593
Texas Residential Construction Commission, Inspector, County Inspection Program
Texas Department Of Insurance, VIP Inspector # 08507061016
Hayman Residential Engineering Services, Field Technician
CMC Energy - Certified Energy Auditor

Knowledge is power, but sharing knowledge brings peace!!
Web Reference: http://www.psinspection.com
0 votes Thank Flag Link Thu Mar 5, 2009
The home inspection generally takes place after an offer is made by the buyer to the seller and they come to terms making it an executed contract. Then the buyer pays to have a home inspection done to find out if in fact there are any problems with the home. I'm not sure I understand what you mean about getting a "credit" back. If you find problems with the house and you choose to move forward with the purchase then you can go back to the seller and ask them either to repair the problems or issue you a credit at closing. Your only other option, is to walk away from the contract and at that point, you will not be reimbursed by the seller for the inspection costs.

Hope that helps!

Heather Jackson, Realtor
Exit Realty of Lakeland
1715 S. Florida Ave
Lakeland, FL 33803
Cell: 863-670-0655
Email: Heatherjacksonfl@aol.com
0 votes Thank Flag Link Thu Mar 5, 2009
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