|Shopping for a home and want to
save money? Frank Overbeek of Bona Fide Home Inspections of Palos Verdes, CA has a
tip for ways to save money when buying a home.
wouldn't spend $300 to save more than $1,600?", asks Overbeek. "A national
inspection corporation recently conducted a survey to determine the factors that are
causing the steady growth in public demand for home inspections," Overbeek said.
"The survey produced convincing evidence that home buyers who spend between $250 and
$350 for a home inspection realize an average savings of $1573, or about a four to
six-fold net return on their investment."
. . . . respondents ranked
"reduced asking price" and "compensation for repairs" as less
important than "peace of mind" and "absence of surprises"
"Savings to buyers came in the form of pre-purchase
repairs or corrections of flaws or problems not disclosed prior to the inspection, and/or
by reduction in the purchase price of the home as a result of the inspection,"
Not all buyers reported savings as a result of the
professional inspection. On the other hand, two buyers reported savings of $10,000 each.
In 76% of the transactions, the seller paid for the repair or corrections of flaws
identified by the report.
The survey was conducted among 200 home owners selected at random from 18,000 recent home
inspections. A total of 58.7 percent of the respondents declared the home inspection
influenced their decision to buy.
||Despite the substantial savings
acquired by some of the respondents, they ranked "reduced asking price" and
"compensation for repairs" as less important than "peace of mind" and
"absence of surprises," Overbeek said.
pointed out that there is a growing trend for sellers to order an inspection at the time
the listing is originated. Sellers are finding that an inspection ordered at the time of
listing can produce numerous advantages and at times, substantial savings as well.
While the inspection does not relieve the seller of the
responsibility for disclosing known defects, a listing inspection by an unbiased
professional home inspector will help reduce the possibility of litigation from problems
that may arise after the close of escrow.
"The savings for a seller protected from litigation as
the result of a home inspection report can be astronomical," Overbeek said.
"With a listing inspection, the seller has plenty of time to order repairs, with the
advantage of being able to shop for a low bidder to perform the work."
For both the buyer and seller, the inspection report
becomes a convincing negotiating tool. For the buyer, the report provides
documentation by a neutral professional, of flaws and information on what is needed to
correct them. For the seller, the report provides evidence of the soundness of the
house and helps the seller substantiate the value of the property, Overbeek declared.