Buying a Home: Don't Overlook a Home Inspection

Let's say that you are in the market for buying a new home. Now is, as most people know, a great time to buy a house. Why? House prices are near all time lows and there are available incentives for those that buy their first home now. The entire home buying experience can be cumbersome and nerve wrecking. Not only is it one of the largest financial investments that you will ever make, it's also is one of the longest time commitments that you are likely to make.

When you sign off on the mortgage, you are committing to up to 30 years of involvement with a single home. Now that's quite a commitment. But before you sign off on your home, there is something that you need to know.

Once you have placed a bid on a home and it has been accepted by either a bank or private owner, your bid is a binding contract. You are now obligated to buy the home or face stiff fees if you fail to do so. But maybe you are second guessing your decision or maybe you are a bit cautious about some aspect of the home. Does it have foundation problems, water damage, or need a new roof?

This is where the home inspector comes in. You are typically not required to have a home inspection, but not doing so could lead to a huge financial mistake. A home inspector will inspect every inch of your potential home. The fees charged are nominal in comparison to the home value. A typical inspection costs less than $300, but the information found during an inspection can be invaluable.

An inspector will look over everything. From the roof, to the attic, to insulation and foundation, no corner is left unturned. At the end of the inspection, the inspector will provide you with a detailed list of repairs needed and also break down all repair with a cost summary. The cost summary tells you exactly what you will have to spend to get your potential home in tip top shape.

What if the inspector find significant damage or items that will be costly to replace? You have a few options now. You can either retract your bid without fees, offer a reduced bid consistent with the money needed to bring the home back to working order, or stick with your initial bid.

An inspection is an invaluable part of the home buying process and should be considered absolutely necessary. After the inspection is complete, you will be able to rest easy knowing what your future home has to offer.