After The Home Inspection Is Complete: What's Next?
There is plenty of conversation about the importance of a home inspection, and what to expect during the process. There isn't nearly as much information about what you can expect after the inspection is completed. If this is your first time buying a home, learn more about what you should expect post-inspection.
It's important to understand that home inspections don't typically follow a pass or fail guideline. Instead, it is more of an investigatory process that lists specific details about the home and leaves it up to the buyers to determine what they will do with the information. After all, the report is the property of the buyers, not the sellers.
The details from this research are compiled in what is known as an inspection report, which lists information about the current condition of the house's structural elements, including the foundation and roof, as well as cosmetic concern, and appliance conditions. The report will also detail any recommended repairs and feedback about future issues that might arise.
The biggest and most devasting news that a potential buyer might learn after the inspection is complete is that the bank will no longer fund the purchase of the property. While the inspection is not a pass or fail process, banks do have guidelines that they follow. Generally, if the house has serious issues uncovered in the inspection report, they will withdraw funding for the purchase as a measure of protection.
For instance, if they fund the purchase of a home with foundation issues, and the buyer forecloses, the bank may be forced to sell the home at a price that is likely lower than they originally invested, which will count as a loss. If the bank tells you they won't fund the house, remember that this does not mean that your mortgage approval status has changed.
Be prepared to engage in a negotiating process after you receive the inspection report. As previously stated, the report will list facts about the house. Depending on what you uncover, you can request that the seller perform certain repairs to the property before you agree to their asking price. You can also request that the seller lower the asking price if you plan to perform the repairs on your own. In a buyers' market, an inspection report can be an excellent bargaining tool.
If you have additional questions about the process, a certified home inspection professional can help you address any concerns you might have.