Home Inspections Kill Deals

Four Reasons Why Home Inspections Kill Deals:

buyer inspection for houses

A buyer may cancel a transaction after a home inspection! It may be tempting to blame overzealous a home inspector when a transaction falls apart after the inspection of some houses.

But there’s more to that situation than meets the eye.

Estate professionals know there are many ways that deals can fall apart, from credit, financing, appraisals to plain cold feet. But certainly, one of the more common deal killers is the home inspection.

But it doesn’t have to be!

Houses and Home Inspectors Do Not Kill Deals

Four home inspection situations lead to a cancelled transaction. Two things which are not on this list are the house and the home inspector. Some estate agents blame the home or the home inspector. However, let’s consider what happens in these situations.

Problems are caused when the home inspection report significantly alters the buyer’s expectations about what they thought they were buying. The client may say, “Gee, I thought I was buying a well-maintained home, but now that we have looked closely, I see the house requires a lot more maintenance than we expected”.

Therefore, the cancellation has everything to do with the client’s expectations coming into the inspection! Agents may wish that the home inspector had been less forthcoming about the condition of the house but this is not the solution! The solution to this problem is buyers having more realistic expectations before they sign the contract. My website and blog attempt to teach people skills that will help them look at houses and evaluate risk so they are more prepared to make an offer on the right house.

Here are the top four reasons buyers cancel a deal after the inspection.

1) Unprepared buyers

There are no classes in university or high school to teach people how houses work or where the risk lies in a residential building. Even professional estate agents have little or no training to help them understand how to look at houses and identify issues. A new generation of homebuyers, many of whom who did not grow up working on their houses with their parents, compounds this problem.

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Critical Home Inspection

About Critical Home Inspections

Critical inspection
You should have a home inspection! If you don’t this may happen to you!

A Critical Home Inspection and report include the really important parts of the home! It is a “Safe Home” inspection.

With a Critical Inspection, I focus and report on the critical components of a home which are the roof, structure (inside and outside), windows and doors, and electricity and plumbing installations.

This inspection is an ideal inspection for both home buyers and sellers! The inspection is for those clients who do not require the full Buyers or Sellers Home Inspection.

Therefore, a Critical Inspection is ideal if you only require inspection of the major components of the home. Besides, a Critical Home Inspection is more affordable!  My fee for a Critical Home Inspection report is about ¾ of that for the Home Buyers or Sellers Inspection.

A Critical Inspection includes

A Critical Inspection includes issues which are frequently NOT plainly obvious to any observant layman.

These include structural cracks in walls, ceilings and floors. Issues such as all damp, roof leaks, illegal or unsafe geysers, windows and door issues. However, I only inspect the internal wall, floor and ceiling finish for signs of damp or staining from moisture intrusion.

Unsafe electrical and gas installations are also part of the inspection. This means stoves and other built-in appliances are included in your report. In addition, I also report surface drainage, vegetation and foliage issues which may affect the structure and roof adversely.

A Critical Inspection includes unsafe, functional or structural issues which, in my opinion, requires prompt remedial attention. Furthermore, remedial action is required to preserve the safety, functional or structural integrity of the home or major installation.

It does not include

Other external elements such as boundary and yard walls, the site, swimming pools, driveways, wall, ceiling and floor finishes, walkways, garden sheds etc. do not form part of the critical inspection. I only inspect BIC’s, sink and kitchen cupboards and counters for moisture intrusion.

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Inspected Once, Inspected Right!®

SEE WHERE I INSPECT IN GAUTENG!

THE HOME DETECTIVE » house inspector

Buying Property

home purchase

Buying a house, townhouse or flat?

Imagine what could go wrong with your home purchase! Houses are made up of hundreds of different parts and materials from a nail to a roof tile and much, much more!

New or used, the home purchase will most likely be one of the biggest investments you’ll ever make! Therefore, with this type of investment, it only makes sense to have a professional home inspection done beforehand.

If you’re thinking, “Why do I need to spend the time and money on a home inspection?”

My question to you is “Why take any unnecessary chances with your hard-earned money?

Protecting your home purchase

An inspection and report will give you a clear, concise picture of the important components and systems of the home. Therefore, you can make an informed decision on the purchase of the home. In doing so, you avoid buying a new home only to spend thousands of rand on unexpected or unforeseen problems.

My thorough, impartial inspection will let you identify any minor or major repairs or maintenance issues. Furthermore, the inspection report is a valuable tool in the bargaining stage to address any issues before finalising your home purchase.

Moreover, you will have a highly trained, experienced and dedicated professional on your side. My report will help you make the right decision with your property purchase.

Don’t make the mistake so many other home buyers are making over and over again!

Protect your investment by having a home inspection!

CONTACT ME

Inspected Once, Inspected Right!®

SEE WHERE I INSPECT IN GAUTENG!

THE HOME DETECTIVE » house inspector

Home Inspectors and Inspections

Home inspections: A must for every home buyer

inspector
Jurie Fourie – Owner of THE HOME DETECTIVE and Certified Home Inspector and Member of the International Association of Certified Home Inspectors (InterNACHI)

When you’re buying a home, you don’t want to skip the home inspection step. Home inspections are an important part of the home buying process. An inspection by an InterNACHI certified home inspector can prevent you from purchasing a home with serious issues such as mould, structural defects, faulty plumbing and more.

Firstly, you should insert a contingency in the “Offer To Purchase” which states that the sale is dependant on a satisfactory home inspection. In addition, you should also agree on an “Inspection Contingency Period” which will give you time to have a home inspection done. Furthermore, this period should be between four to seven days depending on how soon you can get an appointment with a home inspector.

Based on the results of a home inspection, the contingency will then give you the right to cancel the sales agreement. In addition, you can walk away from the transaction without recourse if you are unsatisfied with the seller’s response to a request for an inspection and inspection contingency.

You lose the right to have the home inspected and to negotiate over defects found in a home once the contingency period ends.

What is a home inspection?

As a home buyer, it is your right to have your future home inspected for potential faults and defects. Therefore, don’t skip this step!

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Home Warranty

Is a Home Warranty worth the money you pay?

home warranty against defects

A new way to “protect” home buyers and enrich insurance companies is available in South Africa in the form of a “home warranty” which will protect home buyers against future defects for a period of 2 years!

The “Voetstoots Clause”

Thousands of homes are sold without any guarantee that the homes are free of defects. These homes are all older homes sold with the “voetstoots” clause in the “offer to purchase”. The Consumer Protection Act does not protect you, the buyer, in this case. Selling his home is not the seller’s normal course of business.

The seller’s disclosure is required to declare all known defects. Can you trust that document?

I would not!

You have to prove that the seller was aware of the defects and did not disclose them!

The defects could be maintenance issues or latent defects that the seller knows about, but that is hidden from view. Such defects can cost a lot of money to fix. Furthermore, the legal process is expensive and frustrating if there’s any doubt that the seller did not disclose known defects.

About the home warranty

An insurance company is offering a “home warranty” to protect you from issues and defects for a two year period. In addition, the premiums are determined on an individual basis according to the insurer. However, the cost of this home warranty apparently ranges from R12,000 for a one million Rand home to R28,000.00 for a five million Rand home!

The seller can include the cover as a feature of the sale, or the buyer may insist upon the home warranty as a condition of the sale. In both cases, payment for the warranty forms part of the offer to purchase.

There are costs like certificates of compliance, levies and rates clearances, bond cancellation fees and the estate agent’s commission on the sale that all come off the selling price. Then there are the costs the seller has of buying a new property and moving to it as well!

I can only wonder how many sellers will want to cough up such a large amount of money?

Which leaves you, the buyer, to protect yourself by buying into the home warranty!

But what does the “home warranty” work and protect you against?

Apparently, the key benefits of the home warranty are a cover against:

  • Roof, structure or workmanship defects.
  • Defects with foundation design, structure or workmanship.
  • Faulty electrics, plumbing, drainage, sewerage and gas installations.

If you will have a bond on the property you want to buy, your bank will insist you have a homeowner’s insurance. Furthermore, except for the foundation and structure, a homeowners insurance will cover most of the defects mentioned above. This includes flood water or storm damage to the structure.

In addition, the insurer’s home warranty includes a property inspection beforehand!

Why buy a home warranty?

A home warranty will provide a professional inspection report that lists any exclusions or defects so you know what you are dealing with when it comes to negotiation time.

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