What does a home inspector do, and how does an inspection figure in the purchase of a home?

An inspector checks the safety of your potential new home. Home Inspectors
focus especially on the structure, construction, and mechanical systems
of the house and will make you aware of only repairs, that are needed.

The Inspector does not evaluate whether or not you’re getting good value
for your money. Generally, an inspector checks (and gives prices for repairs
on): the electrical system, plumbing and waste disposal, the water heater,
insulation and Ventilation, the HVAC system, water source and quality,
the potential presence of pests, the foundation, doors, windows, ceilings,
walls, floors, and roof. Be sure to hire a home inspector that is qualified
and experienced.

It’s a good idea to have an inspection before you sign a written offer
since, once the deal is closed, you’ve bought the house “as is.”
Or, you may want to include an inspection clause in the offer when negotiating
for a home. An inspection clause gives you an “out” on buying
the house if serious problems are found,or gives you the ability to renegotiate
the purchase price if repairs are needed. An inspection clause can also
specify that the seller must fix the problem(s) before you purchase the
house.

Do I need to be there for the Inspection?

It’s not required, but it’s a good idea. Following the inspection, the
home inspector will be able to answer questions about the report and any
problem areas. This is also an opportunity to hear an objective opinion
on the home you’d I like to purchase and it is a good time to ask general,
maintenance questions.

Are there any other types of inspections required?

If your home inspector discovers a serious problem a more specific inspection
may be recommended. It’s a good idea to consider having your home inspected
for the presence of a variety of health-related risks like radon gas,
asbestos, or possible problems with the water or waste disposal system.

How can I protect my family from possible lead in the home?

If the house you’re considering was built before 1978 and you have children
under the age of seven, you will want to have an inspection for lead-based
point. It’s important to know that lead flakes from paint can be present
in both the home and in the soil surrounding the house. The problem can
be fixed temporarily by repairing damaged paint surfaces or planting grass
over effected soil. Hiring a lead abatement contractor to remove paint
chips and seal damaged areas will fix the problem permanently.

Are Power Lines a Health Hazard?

There are no definitive research findings that indicate exposure to power
lines results in greater instances of disease or illness.

Do I need A lawyer to Buy a Home

Laws vary by state. Some states require a lawyer to assist in several
aspects of the home buying process while other states do not, as long
as a qualified real estate professional is involved. Even if your state
doesn’t require one, you may want to hire a lawyer to help with the complex
paperwork and legal contracts. A lawyer can review contracts, make you
aware of special considerations, and assist you with the closing process.
Your real estate agent may be able to recommend a lawyer. If not, shop
around. Find out what services are provided for what fee, and whether
the attorney is experienced at representing home buyers.

Do I really need Homeowner’s Insurance?

Yes. A paid homeowner’s insurance policy (or a paid receipt for one)
is required at closing, so arrangements will have to be made prior to
that day. Plus, involving the insurance agent early in the home buying
process can save you money. Insurance agents are a great resource for
information on home safety and they can give tips on how to keep insurance
premiums low.

What steps can I take to lower my homeowners Insurance Costs?

Be sure to shop around among several insurance companies. Also, consider
the cost of insurance when you look at homes. Newer homes and homes constructed with materials like brick tend to have lower premiums. Think about avoiding areas prone to natural disasters, like flooding. Choose a home with a fire hydrant or a fire department nearby.

Is the Home located in a Flood Plain?

Your real estate agent or lender can help you answer this question. If
you live in a flood plain, the lender will require that you have flood
insurance before lending any money to you. But if you live near a flood
plain, you may choose whether or not to get flood insurance coverage for
your home. Work with an insurance agent to construct a policy that fits
your needs.

What other Issues Should I consider Before I But my Home?

Always check to see if the house is in a low-lying area, in a high-risk
area for natural disasters (like earthquakes, hurricanes, tornadoes, etc.),
or in a hazardous materials area. Be sure the house meets building codes.
Also consider local zoning laws, which could affect remodeling or making
an addition in the future. Your real estate agent should be able to help
you with these questions.

How do I make an Offer

Your real estate agent will assist you in making an offer, which will
include the following information:

Complete legal description of the property 
Amount of earnest money 
Down payment and financing details 
Proposed move-in date 
Price you are offering 
Proposed closing date 
Length of time the offer is valid 
Details of the deal

Remember that a sale commitment depends on negotiating a satisfactory
contract with the seller, not just making an offer.

Other ways to lower insurance costs include insuring your home and car(s)
with the same company, increasing home security, and seeking group coverage
through alumni or business associations. Insurance costs are always lowered
by raising your deductibles, but this exposes you to a higher out-of-pocket
cost if you have to file a claim.

How do I determine the Initial offer?

Unless you have a buyer’s agent, remember that the agent works for the
seller. Make a point of asking him or her to keep your discussions and
information confidential. Listen to your real estate agent’s advice, but
follow your own instincts on deciding a fair price. Calculating your offer
should involve several factors: what homes sell for in the area, the home’s
condition, how long it’s been on the market, financing terms, and the
seller’s situation. By the time you’re ready to make an offer, you should
have a good idea of what the home is worth and what you can afford. And,
be prepared for give-and-take negotiation, which is very common when buying
a home. The buyer and seller may often go back and forth until they can
agree on a price.

What is the earnest money? How much Money should I set Aside?

Earnest money is money put down to demonstrate your seriousness about
buying a home. It must be substantial enough to demonstrate good faith
and is usually between 1-5% of the purchase price (though the amount can
vary with local customs and conditions). If your offer is accepted, the
earnest money becomes part of your down payment or closing costs. If the
offer is rejected, your money is returned to you. If you back out of a
deal, you may forfeit the entire amount.

What are “Home Warranties”, and should I consider them?

Home warranties offer you protection for a specific period of time (e.g.,
one year) against potentially costly problems, like unexpected repairs
on appliances or home systems, which are not covered by homeowner’s insurance.
Warranties are becoming more popular because they offer protection during
the time immediately following the purchase of a home, a time when many
people find themselves cash-strapped.

Provided courtesy of the US
Department of Housing and Urban Development
http://www.hud.gov