How To Protect Yourself As A Home Buyer

Buying a home comes with a lot of unknowns. That’s why there is a due diligence process that every buyer should go through before closing on the property. The inspection period is done on most purchases and is typically done within the first week or two after the offer is accepted and you’re under contract.

The inspection acts as a safeguard for lenders to make sure the house is in adequate shape to lend on meaning that once the lender funds the purchase, the house won’t be condemned and uninhabitable.

It also protects the buyer from unexpected issues with the home. Sellers are supposed to disclose any known issues and an inspection is done to discover unknown issues. 

I purchased seven different properties and learned more after each transaction. Below is a list of areas that I believe you should focus on to protect yourself as a buyer:

Choose a reputable inspection company

You want to use an inspection company that is very detail-oriented and knowledgeable. So how do you find one?

Agents typically have a few inspection companies they’ve used in the past. Google searches work well as long as you read through reviews of past customers. 

The things you want to look out for is how detailed their report is. Every company produces a different type of report. Some can be dozens of pages and others are only a dozen pages. The more detailed the better. 

Don’t hesitate to ask them about what their scope of work entails. Every inspector is different in terms of how they operate and what their skillset is. 

Try To Be Present With Your Agent During The Inspection

From my experience, every agent is present during the inspection. It’s helpful for you as the buyer to be present as well. You’ll get to ask questions directly to the inspector and hear their thoughts on things of concern and possible solutions and even estimate costs. 

You and your agent can also serve as another set of eyes. No inspector will catch every single red flag. Ask them to look more closely at items that you have concerns with like foundation, appliances, etc. 

This also gives you a better sense of the condition of the home rather than just reading it on an inspection report. 

Lastly, you can discuss with the inspector on how detailed the note the red flags. The seller and listing agent will typically trust the inspector’s notes as long as it’s accurate and will likely make it easier to obtain seller credit for the repairs. 

Hire Experts To Look Deeper At Red Flags 

Think of the inspector as a generalist. If anything jumps out to you or the inspector as a red flag, hire a specialist to take a look. Not every specialist will charge for the trip as some give free estimates. 

For my cabin rental, the inspector noted cracks in the foundation that were a hairline thicker than a quarter inch. I decided to get a structural engineer out to do an assessment who said the home will need to be stabilized soon with piers. I paid $550 for the engineer to put together a report. Once the report was created, I contacted a foundation company to review and quote the repair. The quote was over $19,000. Guess who paid? 

Because I decided to spend the $550 for a structural engineering report, I was able to get over $19,000 in seller credit to fund the repair. What a great return on investment! 

Get A Sewer Scope Inspection

Sewer scopes are one of my non-negotiables. I strongly advise everyone to get one done. Sewer scopes show the condition of the sewage pipes. Experts are able to determine the condition, water level, flow, etc. and will be able to point out red flags. The last thing you want is to have to replace the plumbing after closing. This can cost tens of thousands of dollars depending on the set up and labor. 

A sewer scope usually costs between $150 to $300. Not every inspection company offers sewer scopes. In some markets, it’s just not a normal thing to do for home inspections. Regardless, I strongly advise you to get a sewer scope done. If the inspection company doesn’t offer sewer scopes, contact a reputable plumber who can.

Final Words

The due diligence process is crucial to ensuring that the property you’re purchasing isn’t going to cost you more money and for negotiating purposes.

The inspection report along with any other reports and quotes will serve as documented evidence of repairs needed and estimated costs to obtain seller credit or to fix your future home so that you’re not on the hook for the repair costs once the property is yours.

If there’s one area you shouldn’t cheap out on, it’s due diligence. It’s better to be safe than sorry, especially with a costly transaction like a home.