Think You Don't Need a Home Inspection? Big Mistake

There seems to be a trend toward foregoing a home inspection when buying a home, and many new homeowners end up paying a steep price for it. It doesn't take many defects in a home's systems or components to add up to THOUSANDS of dollars in repair costs. A heating system alone could set you back $2,000 to $10,000. A new roof covering...$5,000. A rotted sill plate? Up to $20,000. That's a hefty chunk of change for a new homeowner. Yet many home buyers still balk at a few hundred dollars for a home inspection. That's like buying a new car without a warranty....it's asking for trouble.
The "skip-the-inspection" trend took root when the real estate market started to nosedive in the third quarter of 2007. Suddenly, foreclosures skyrocketed and home values plummeted as the subprime lending debacle took it's toll. Families were losing their homes in record numbers, and their credit scores tanked. Those who could sufficiently repair their credit and qualify for a new mortgage were understandably apprehensive about laying out MORE money for a home inspection. As a result, some are finding themselves in worse financial shape than ever after discovering defects and maintenance issues with the new home and paying repair costs, while keeping up with the shiny new mortgage payments. Out of the frying pan, into the fire.
Worse yet, alot of foreclosed homes are being looted and trashed by the occupants before they leave. Places like Las Vegas, Cleveland, and Houston, with a higher rate of foreclosures, are experiencing a rash of these incidents. Water heaters, furnaces, sinks...even entire kitchens are being packed up and carted away as the displaced take what they can get. When a bank tries to sell the property, there are often astronomical repair costs involved before the home is once again habitable. Prospective buyers, while admiring the spiral staircase, may fail to notice the lack of copper plumbing lines in the basement that were ripped out for scrap money by the former occupant. Sounds incredible that such things happen, but the truth is, they're occurring more and more often as the real estate nightmare unfolds.
It goes without saying that a home inspector (any worth his salt), would have noticed the missing plumbing or the empty closet that once housed the water heater. More than ever, a home inspection is the first line of protection.
But that's just one scenario; consider the first time home buyer who finally saved up a down payment after slaving for years at a just-above-minimum-wage-job. Often times (and I'm guilty of this myself), the overwhelming elation at finally having your own space blinds you to the potential headaches you'll face as a homeowner.
I was all of 25 years old when I bought my first home, and at that age, I had no fear. A jack-of-all-trades, any defects I saw in that house were easy fixes. I had my buddy, a general contractor, do a walk-through, figuring that if anybody could point out a boo-boo, he could. His assessment was that the furnace was "kinda old" but still working, the roof had a few shingles missing, that I might have to replace about 10 feet of old galvanized piping in the crawl space, and the GFCI in the kitchen was shot. So from what he saw, about $200 in materials, labor, etc.
It was the unseen defects that made my life miserable. Ever seen that movie "The Money Pit"? That was my first home. It was so bad that I briefly considered insulating the woodshed as an alternative to living in the house. My 1960's-era furnace conked out regularly. The plumbing leaked in the crawl space. A monstrous crack appeared in the basement wall, which I discovered had been there all along, but covered with a thin coat of epoxy to deceive the eye. Roof leak, anyone? While watching the Bills get their asses whupped one rainy sunday afternoon, the ceiling in the bathroom collapsed under the weight of approximately 2 billion gallons of water. Ok, slight exaggeration. Maybe 1 billion. And that was just the first 3 months.
Naturally, that obscure piece of paper that my real estate agent tucked into my folder before the closing haunted me for a long time. It was one of those generic printed pages with a trite motto: "For Your Protection, Get an Inspection!". At the time, it sounded like the warnings you hear to pack plenty of condoms if you're headed to Vegas, so I paid it no attention. And I paid the price. After 15 years of renovation, a new water pump, water heater, furnace, roof, a complete plumbing and electrical overhaul, and about $35,000, I'd never again do without a home inspection.
Consider this: let's say a complete home inspection costs between $300 and $500, depending on the size of the home. If that inspection uncovered a defect that might potentially cost you $5,000, was it worth it? You betcha. If a big snafu is discovered and you still want to buy, at least you'll have a negotiating point with the seller to settle on a reasonable price.
The bottom line is that if you pass up a home inspection, you're taking it on bare faith that the seller was honest in the disclosure statement. Precious few will tell you that the A/C unit has been acting up, the breaker trips when you run the microwave, and there's a bird nest in the chimney that prevents the boiler from running more than 5 minutes. You need a home inspector to test every system and component in that home to be sure you're not getting the wool pulled over your eyes. Only a certified, licensed inspector is trained to sniff out these potential nightmares; not a general contractor, not your cousin Bubba who helped build the new Civic Center, and not your saturday night drinking buddy who worked on your water pump at the other house. Home inspectors know what to look for....weak current in an electrical circuit, low water pressure, faulty insulation or ventilation that might compromise the service life of the roof, and structural issues that might plague you for years to come.
So at the risk of being labeled an alarmist, GET A HOME INSPECTION if you're buying a home. And pack plenty of condoms if you're headed to Vegas.
   Neverbetter is a home inspector in NY.  Check out http://www.AltaSup.com for more info on home inspections.