Untitled Database

What is it?

During the Inspections phase of the closing process, you get to take a close look at the physical condition of the property in order to better understand what it is you’re buying. Through the help of professionals, you can identify any physical or environmental defects that, if not addressed by the Seller, would stop you from proceeding with the purchase of the property.

Our explanation of the Inspections phase will focus on the basic inspections framework and how to make sure you get through it with as little stress as possible. For more detailed guidance on home inspection standards of practice and home maintenance and repair issues, consult a local home inspector or contractor.

🤔 If you’re extra curious to learn more, here’s the actual clauses from the NJ Standard Sales Contract regarding inspections.

Inspection Clauses

💦Note: NJ Home Inspectors DO NOT do septic inspections. Must be separate inspectors.

Resources:

[RepairPricer: AI-Generated Home Repair Estimate ($80) in 24 hours (Use after you’ve received your inspection report)](https://tgre.notion.site/RepairPricer-AI-Generated-Home-Repair-Estimate-80-in-24-hours-Use-after-you-ve-received-your-in-1e878725c45243ef8e3f6bca5897e838)

Residential Cost Guide by Pillar to Post Home Inspections

Why is it important?

Buying a property without knowing its actual condition can be a recipe for disaster. If buyers had to commit to closing on properties without any real grasp of whether there are major problems with the home’s mechanical systems or structural components, any deferred maintenance items on the horizon, or any unsafe environmental conditions, many new homeowners would quickly find themselves in hot water dealing with issues that they can’t afford to fix or that even jeopardize the safety of their families.

To avoid this problem, if you’re buying a home in New Jersey, your Contract will provide for an inspections contingency that affords you:

1. The right to have the property inspected for physical and environmental defects by a state-licensed home inspector (and by other experts, as applicable); and also,
2. A legal framework for negotiating the repair of defects with the Seller, including the right for you to terminate the Contract under certain circumstances. (This is why it is called a “contingency.” Your obligation to complete the purchase of the property is contingent upon — i.e., conditioned upon — you and the Seller being able to reach an agreement as to inspection issues.)

The Inspections phase is where this inspections contingency plays out, beginning with the physical inspection of the property by a professional home inspector, followed by the negotiation of inspection issues between you and the Seller…and ending with either the removal (or satisfaction) of the inspections contingency or, if the parties are unable to come to an agreement as to the repair of inspection issues, the termination of the Contract.

Note that it is not common for a buyer to waive the inspection contingency, as the stakes are obviously high in doing so. Exceptions to this rule might be investor-buyers or buyers who plan on demolishing an existing home and building new. Rather than waive the inspections contingency entirely, it’s somewhat more common for buyers to agree to put limitations on their inspections contingency as part of their offer, in an attempt to make their offer more appealing to the Seller. A few examples of this might be the Buyer offering to:

• Limit inspections issues to “major” issues only (although whether an issue is “major” is ultimately a fuzzy, subjective determination, so this amounts to more of an assurance to the Seller that the Buyer won’t “nit-pick” during inspection negotiations);
• Limit inspections issues to structural or mechanical issues only;
• Absorb the first $______ of inspection issues (such that, if the inspection issues don’t total more than that amount in cost, the buyer can’t request any repairs of the Seller).
• Perform an inspection for informational purposes only (i.e., the Buyer agrees that it won’t ask the Seller to make any repairs but retains a right to walk away for any defects that are identified).

1st Homebuyer: What Inspections Should I Get When I Buy A House?

https://www.youtube.com/watch?v=P9kHWRKiSJs

1. Understand Inspection Responsibilities: Clarify who is responsible for ordering different inspections when you're in contract to buy a house. Typically, the lender only orders the appraisal, while other inspections like pest, home, well, and septic are often initiated by the buyer or the real estate agent.
2. Get Essential Inspections: Regardless of the requirements for your specific loan type, it's strongly recommended to get a termite and home inspection. These are standard and provide crucial information about the condition of the property.
3. Consider Additional Inspections: Depending on your concerns and the property's characteristics, you may want to consider additional inspections such as well and septic inspections. Consult with your real estate agent to determine which inspections are necessary or advisable.

How does it work?

The Inspections phase of the closing process begins as soon as Attorney Review concludes.  Your Contract with the Seller will stipulate a time within which you must complete your inspections.  The most common allotted time is 10 or 14 days, calculated from the date that Attorney Review concludes.  But in a competitive, “seller’s” market, it’s not surprising to see buyers offering to complete their inspections within as little as 7 days.

It’s important to note that “completing inspections” means not only performing the actual physical inspections at the property, but also providing the Seller with any repair requests and copies of the inspection reports, all within the allotted time.  So waiting until the end of your allotted time period to get the actual inspection performed at the property is not wise.

To that end, the steps of the Inspections phase are:

STEP 1: Choose a Home Inspector

Ideally, you would start researching home inspectors during Attorney Review, so that you’ve decided which inspector you’d like to use by the time Attorney Review concludes and can get on his schedule as soon as possible thereafter (again, most inspectors will not put you on their schedule until you’ve concluded Attorney Review).

Hiring a home inspector is one of the most critical parts of the home buying process, for obvious reasons. In fact, the Inspections phase is the most common phase where transactions fall apart. You should therefore pick a home inspector as carefully as you would pick any other member of your team of experts, like your closing attorney, real estate agent or mortgage lender.

Talk to two or three licensed home inspectors and ask:

• How long have they been a licensed inspector? Do they have any other special accreditations or experience, such as ASHI certification or an engineering degree?
• What are their fees for a general home inspection, radon test, and wood-destroying-insect inspection? (See below for a description of these standard inspections.)
• What is their availability for the projected week in which you expect to conclude Attorney Review?
• How quickly can they get you their written report once the inspection is completed? Many inspectors can get you their report within 24-48 hours.
• Can you see an example of their report?
• Will their report include photos?