Inspections and Home Warranties
Buyers Are Responsible for Inspecting the Property
The Purchase Agreement typically contains provisions allowing you to perform any inspections you desire. Inspections do not guarantee the condition of the home; instead their purpose is to educate you regarding the home’s current condition and how to maintain it in the future.
Inspections are completed within a contractually specified time period, typically 10-15 days. If you are satisfied with the condition of the property, you remove the inspection contingency and proceed with the sale. If you are not satisfied, you may cancel the contract or negotiate with the Seller. In a negotiation, the purchase price may be adjusted, a credit may be given in escrow, or the Seller may perform work prior to close of
escrow.
Structural Pest Control Inspection
Sometimes referred to as a “Termite Report,” it examines all types of insect and fungus damage (Section 1) as well as conditions that could lead to damage (Section 2). This inspection is performed by a specially licensed contractor who must inspect properties according to criteria established by the State Board of Pest Inspection.
Contractor Inspections
A general contractor’s inspection will check the overall condition of the home from the foundation to the roof, including electrical, plumbing and heating, the basic structure, as well as the quality of the finish work. Other recommended inspections may include structural engineering, soil conditions, fireplace and furnace. The inspection period is useful for obtaining estimates for repairs and improvements you plan to make later.
Who Pays for Inspections?
Typically, the Buyer pays for inspections. Pest Control Inspections generally range from $350 to $500 and Contractor’s Inspections range from $400 to $800 depending on the size of the home. It is important to use qualified professionals and we can recommend inspectors in every category.
On Your Final Walk-through, Be Sure That:
- Required repairs have been made. Obtain copies of paid bills and warranties.
- All items included in the sale (appliances, window coverings, light fixtures) are present in the home.
- All appliances are operating.
- Intercom, doorbell and alarm are operational.
- Hot water heater is working.
- Heating and air conditioning systems are working.
- No plants or shrubs have been removed from the yard.
- Garage door opener and other remotes are available.
- Instruction books and warranties on appliances and fixtures are there.
- All personal items of the Seller and all debris will be removed by close of escrow.
Home Warranty Plans
Several Home Warranty Plans are available that provide insurance for the major systems and basic appliances of the home. The cost is approximately $350 to $500 per year depending on the extent of coverage. These plans can easily pay for themselves should a covered item need repair or replacement.