The home buyers, in order to take advantage of the federal tax credits, had to make their purchases faster and owing to lack of time, these houses may not be scrutinized properly or not scrutinized at all. Without a proper assessment of the property, the seller has an upper hand in increasing the price of the home than it is actually worth. In spite of paying a higher cost, you will also incur expenses for repairing these damages, when it surfaces later. But you need not actually go through all such hardships in the presence of a home inspector.
Home inspection has been a part of the purchase decision process in order to evaluate the purchase price accurately. Since it does not take more than two weeks, it has been encouraged by most individuals. This will include dealing with water damage, foundation flaws, old furnaces, etc. In most states, there is a law stating that the seller must enclose a property disclosure statement with the purchase contract documents. This statement must include all of the material defects if any in the house. (Wise investors dealing with For Sale By Owners should also ask for a disclosure of this type, especially in areas where there are a lot of FSBO’s like Phoenix investment property.)
After inspection, if there are any other damages or defects found, the buyer is given the right to sue the seller for the damages or let the seller get the damages repaired or even conclude the contract. However, to get the claim from the seller, the buyer must prove that the seller was conscious of the defect but purposely avoided it in the property disclosure statement.
The seller must take responsibility to maintain any other damages between the time of the purchase and the closing of the contract (or as an investment strategy you can ask the seller if they wish to a be a tenant, which is a strategy gaining popularity for Phoenix rental properties). The buyer can again claim for damages from the seller if there are any new damages found currently which were not in existence at inspection. The purchase contract will also comprise of all the items that are included in the purchase price and also those items which are not included. This must be verified by the buyer again.
If there are any alterations or modifications made by the home owner previously but not reviewed, the buyer must get the municipality to review it and also obtain a building permit or an amended certificate of occupancy. This is crucial while you require a mortgage over the property. Hence it is clear that a home inspector can better know the regulations and guide you in the purchase efficiently.