We have a competitive market here in the Lakes Region due to the lack of inventory for sale. As a result, the last several years, we’ve seen many offers made on properties where the buyers eliminated the home inspection contingency and have made “all cash” offers to make their offer more appealing to the seller.
Even in a fast-paced market, using a licensed home inspector is critical to safeguard your investment. For most people, purchasing a home is one of the largest financial decisions they’ll make. A professional home inspector provides invaluable insights into a property’s condition, identifying issues that might not be visible to the untrained eye. While experienced investors or house flippers might be comfortable waiving an inspection due to their expertise, this approach is not advisable for the average buyer, especially first-time homebuyers.
If you feel pressured to forgo a contingency, consider alternative solutions
Such as agreeing that the seller will not be required to make repairs or offer concessions but allowing you to cancel the purchase if serious issues are found. You might also propose a clause limiting concessions to a maximum dollar amount to make your offer more appealing while still protecting yourself from unexpected surprises.
Common Problems Uncovered by Home Inspections
Licensed home inspectors are trained to detect potentially costly issues, such as:
- Poor drainage and grade sloping- if a homesite is not graded properly, water will not drain correctly. This can lead to leaks and cracks in the basement, foundations, and even foundation movement. Problematic gutters, or the lack thereof, can also be contributing factors.
- Problems with the foundation or crawlspace- 60% of the homes in the US are built on land with some clay content, which is an expansive soil that can cause foundations to shift slightly. Foundations and concrete flooring can also crack due to intrusive tree roots, water leaks under the foundation, inadequate pea stone, poor compacting, drainage around the foundation, inadequately sized footings, lack of steel reinforcement, rebar, and poor soil vs. sand for backfilling the foundation.
- Roof issues- Roofs can have troublesome issues. Were the shingles installed properly? Have the shingles failed, or are they part of a class-action suit because of early failure? Are there too many shingle layers, ice dams? What’s the remaining age expectancy? Brittle or curled shingles, mass build-up?
- Septic systems and sewer lines- Performing a septic test can potentially eliminate a huge future expense. Is the system state-approved? The size of the tank, distribution box, pumping chamber, age of the system, and leach fields are important. Service history. Many times, the system is undersized. The leach field should be probed and checked for saturation and/or failure. Baffles and entry pipes should be reviewed for settlement. For town sewer connections, pipes can become clogged. Also, for homes built from 1945 to 1972, many conduit sewer pipes called Orangeburg pipes were used. These were made with layers of fibers from wood pulp and pitch…they were cheap and, over time, absorbed water and are prone to premature failure and deterioration, a very costly expense.
- Electrical problems- Safety is critical and every year, approximately 51,000 home fires start because of electrical issues, fraying insulation, DIY wiring, mismatched wires, and GFI’s missing. Some houses still have aluminum wiring from the 1960s and 1970s. We even see some old knob/tube wiring, old fuse boxes, exposed wiring, and illegal wiring not up to code.
- Rotting wood- Age and moisture are the culprits. Check around exterior doors, jambs, windows, decks, sliders, and exterior stairs. We’ve seen moisture damage from splashback on sills, improper window installations, and inadequate roof overhangs, which keep water away from the home and foundation.
- Plumbing and heating/air conditioning problems- Failed seals on toilets, leaks in plumbing joints, oil leaks from supply lines, faulty fixtures, appliances, and old & unsafe heating systems: cracked burners and heat exchanges, inadequate ventilation, and condenser failures. Pressure relief valve failures and hot water heater failures.
- Other issues- Radon tests for air & water, arsenic levels in water and/or bacteria, lead paint tests, test for evidence of mold, ventilation in attic & eaves, insulation content, structural integrity, evidence of asbestos, damage from rodents & carpenter ants, building code violations, or lack of obtaining proper building permits for additions, environmental hazards (i.e., leaking oil tanks).
Why It Matters
A thorough home inspection provides peace of mind by uncovering latent issues that could lead to major expenses down the road. While no home is perfect, understanding the property’s condition helps you make informed decisions about moving forward. Minor repairs might not be worth negotiating, but major structural or safety concerns should never be overlooked.
Given today’s high home prices, waiving the home inspection contingency is a gamble not worth taking. Protect your investment and your future by always hiring a licensed home inspector to assess the property before committing to a purchase. The insights they provide are invaluable in ensuring your home purchase is a sound decision.
This article was written by Frank Roche. Frank is president of Roche Realty Group in Meredith, NH, and can be reached at (603) 279-7046. Please feel free to visit www.rocherealty.com to learn more about the Lakes Region and its real estate market.
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