Attending the home inspection is one of the most important parts of buying a new home. It’s a huge financial investment with long term repercussions and you want to make sure the home you’re buying is in good shape. Therefore, I feel strongly that buyers should always be at the home inspection.

While your inspector is inspecting the home, you have an opportunity to measure windows and spaces, get to know the home, and make plans. There is a verbal inspection summary at the end of the inspection. Inspectors appreciate this time with you to share their findings and answer your questions about the home, so please, ask them!

Yes, you’ll get the written report, but it doesn’t give you nearly as clear of a picture of the condition of the house as being there to see any problems for yourself and ask the inspector follow up questions. Unless you’re extremely knowledgeable about home construction, it’s difficult to understand which items in the inspection report are big problems or defects, and which are really minor issues. It’s easy to get worked up about ungrounded outlets, but not realize that the water seepage in the basement is a much bigger and more extensive problem to fix.

Here is our list of TIPS for attending the home inspection:

1. Inspections of condos take approximately 2 hours and single-family home/multi-unit buildings generally take about 3 hours. Plan to be there the entire time.

2. Wear comfortable clothes and shoes that can get dirty as the inspector may ask you to crawl in the basement or get up in the attic to see any problems.

3. The inspector isn’t psychic. He can only see obvious defects and cannot see what is going on inside the walls with plumbing, electrical, etc. Therefore, having a clean inspection report doesn’t mean you won’t ever have a problem with a home. It just means what can be seen seems to be in good shape.

4. Don’t be afraid to ask questions of the inspector, especially if you don’t understand what he is explaining to you. It’s crucial you understand each issue and whether it’s a minor issue or an expensive repair.

5. Bring a tape measure with you to take any needed room measurements as we may not be able to get back into the home until the walkthrough before closing. In addition, if you want family/friends to see the home, especially if you want their input on inspection items, furniture placement, decorating, etc., it’s best to bring them to the inspection as well.

6. If you are planning on having any work done to the home, it’s best to arrange for contractors, painters, floor refinishers, and others to come by sometime during the inspection to give you estimates. If you need referrals for service providers, please let me know.

7. Bring your checkbook with you as most inspectors require payment at the end of the inspection.

8. Inspection reports are generally emailed to you within 2 days after the inspection. We’ll then set up a time to discuss any items we want to ask the seller to fix, or whether we want the seller to give us a closing cost credit instead.

9. Remember that the point of the inspection is to:

   1. Discover safety issues

   2. See if there are any structural issues

   3. Discover any needed repairs to the working components

We are NOT there to nitpick the paint colors, the dent in the fridge door, the furnace that needs to be cleaned or the gutters that need to be swept out. Unless you are buying a new construction, no home is going to be perfect. We need to accept the house with its cosmetic flaws or find another house. Remember, we are mainly concerned with safety issues and systems that aren’t working.

IMPORTANT: Take pictures and measurements of every room and closet in the property. You’ll want to refer to these later when planning where to put furniture, whether to update paint colors or add shelving in closets!

Once the inspection report comes back, you need to review it thoroughly. Don’t be surprised if it’s 30 + pages long with more than 25 “issues” that need to be addressed. This is typical. We’ve never seen an inspection report that didn’t have at least 5 items that needed repair.

There is a big difference between small mainly cosmetic repairs such as recaulking a shower or repairing a broken microwave handle and large issues such as sewer back up in the basement. Remember, the home inspection report is an informational report for you, the buyer, not a to-do list for the seller. We should only be concerned about structural issues, safety defects, or appliances/mechanicals not working.

Therefore, here are our tips for reading the inspection report:

1. Pay particular attention to issues relating to the electrical, plumbing, roof, and foundation, or water intrusion issues, as these can be big-ticket items to repair.

2. If there are any big-ticket items that are concerning to you, decide if you want to have additional inspections performed. We can bring in a structural engineer, a sewer inspector, an electrician, or a pest control company. You’ll be responsible for paying their fees.

3. Make a list of items you feel the seller must repair for you to be willing to close on the purchase.

4. Write a second list of items you’d like the seller to fix but which would not be deal-breakers if they aren’t fixed.

5. Make a third list of the items you’re OK with fixing yourself or feel don’t really need to be fixed.

6. Once you’ve done this, we’ll review the lists with you and suggest changes if you’re leaving out an expensive repair, not asking for enough, or asking for too much.

7. Keep in mind that you can ask the sellers to repair items or provide a credit for you to fix the items yourself after closing. Credits go towards your closing costs. For instance, if we negotiate a $2,000 inspection credit, you’d bring to closing $2,000 less than originally expected. That way you have that $2,000 to complete needed repairs after the closing.

8. Remember that the crucial items on the inspection report are:

   1. Safety issues

   2. Structural issues

   3. Components such as appliances or systems that are not working.

After Reading Carefully:

Once we’ve agreed on a strategy, we’ll negotiate the inspection repairs with the seller’s agent using a Buyer’s Inspection Response. If there are only a few items that need to be fixed, the negotiation will probably go quickly. However, if contractors or tradespeople need to be brought in to give estimates, expect the inspection negotiations to take 3 – 7 days.

It is important to note that the sellers will respond with their Seller’s Inspection Response to our repair requests. It is best to hang tight and be patient at this time.

The repairs need to be completed by the final walkthrough, with receipts proving that the work was done sent to us ahead of closing. If we are not able to come to an agreement, you have the right to walk away from the contract and get a refund of your earnest money.

Keep in mind, as part of the inspection negotiations I can also ask the sellers to provide a home warranty for the first year.

An appraisal is the process of developing an opinion of value for real property. Real estate transactions often require appraisals because they occur infrequently, and every property is unique. I highly recommend this article from the National Association of Realtors on Appraisals to gain a better understanding of the appraisal process.

Your mortgage lender orders the appraisal but will call you at some point to pay for it. Generally, the cost is somewhere between $500 and $700, and it is considered part of your closing costs, even though you pay for it upfront.

A few tips about the appraisal:

1. You do not need to attend.

2. The buyer’s Realtor does not attend either. Only the seller’s Realtor attends.

3. Once you pay for the appraisal, it generally takes about a week for the appraiser to complete it. After that, it usually takes another week or so for the report to be written. Expect it to take about two weeks from when you pay for the appraisal until you receive the report.

4. Once the report is written, it’s given to your mortgage lender. Your mortgage lender will then forward it to you and let you know whether the property appraised at the purchase price, below the purchase price, or above the purchase price.

5. If the property appraised at the purchase price, nothing further needs to be done, and the closing process will proceed as planned.

6. If the property appraised for more than the purchase price, it is a good thing, congratulations! That means we got you a great deal, and you’ll have instant equity in your home on the day you move in!

7. If the property appraised for less than the purchase price, we have a problem. The bank will only give you a loan for the appraised value. In this case, we then go back and renegotiate the purchase price with the sellers, ideally to the appraisal price. If they don’t come down to the appraisal price, you can choose to either walk away and get your earnest money back or bring the additional funds to closing. For instance, the purchase price is $500K, but the appraisal only came in at $475K and the sellers won’t go any lower than $480K. You have to decide if you’re going to pay an extra $5K on top of your down payment and closing costs or walk away from the deal.

Now that you are through the inspection and appraisal process, it’s time to hire movers and start packing!

Call now to get moving estimates and secure a mover as they often get booked up weeks in advance. Also, if you’re moving into a condo building check with the HOA president or property management company to see if you need to pay any move-in fees, reserve an elevator, or if there are move-in restrictions, etc.

Recommended Movers

• You Move Me (800) 926-3900

• All My Sons Moving & Storage (317) 483-7688

• A Arnold World Class Relocation (317) 537-9888

Whichever mover you end up using, we highly recommend asking them to bring wardrobe boxes for your hanging clothes. That way you don’t have to take everything off the hangers and pack the items up. The movers will simply grab all hanging items and put them on the rods in the boxes. When you get to your new home you can just grab the hangers and hang the items back up—it saves a ton of time.

Moving Supplies

Start gathering boxes and packing supplies. Often you can find free boxes on Nextdoor or Facebook Marketplace. Otherwise, U-Haul and Uline are great places to get moving supplies.

Pets

Moving can be incredibly stressful on pets so consider having them stay with a friend or in daycare for a few days while you move and get settled into your new place.

Follow the tips in our new moving day cheat sheet to help your big move go as smoothly as possible!

This is one of those annoying tasks that no one thinks about doing ahead of time. It is crucial, especially if you want the TV and internet working the day you move in.

Call now to hook up your utilities!

Make sure to get the gas, electricity, water, and sewer changed into your name.

You’ll also want to call your TV and internet provider as soon as possible. Most likely, you’ll need to set up an appointment with them to come out and install the service. It can take weeks to get the appointment.

When buying in a condo building, check with the HOA President or Property Management Company to see if either cable or internet are included in your HOA fee. If not, find out if there is a certain provider you have to use or if you can use any provider you like.

If you’re buying a single-family house, arrange for trash service billing to be changed to your name. Have all of the utilities start on the day of closing.

Utility Info & Useful Phone Numbers

Now that we’re getting nearer to your closing date, it’s time to get your down payment ready! Remember that in addition to the down payment you need approximately 3% of the purchase price on top of the down payment for the closing costs.

See Closing Costs Estimates and Who Pays for What.

If any of these funds are going to be gifted to you by a family member, you need to let your mortgage lender know right away so he or she can get approval from the underwriter for the funds.

It’s best if the down payment and closing cost funds are transferred into one account. This account must be disclosed to your mortgage lender and you must let him or her know this is the account you’re going to be using for the down payment as the funds have to be tracked.

Make sure you find out what time your bank stops accepting same-day wire transfers as it’s not the same as their regular business hours. For example, they may be open until 8 pm, but the cut off for same-day wire transfers is 3 pm. In that scenario, you’re going to need to finish the wire transfer before 3 pm.

Plan ahead if you need to schedule time off work, as you will have to go to your bank in person to conduct a wire transfer.

Consider making your new home safer by taking some security measures:

Rekey all of your door locks

You just never know who still has a key to your new home. Better to be safe than sorry and have a locksmith rekey the existing locks on all of your exterior doors. Our recommended locksmith is Rekey Home Locks (317) 376-8334. They can rekey the locks so that the same key will open all of your exterior doors. We recommend having at least one deadbolt on all exterior doors. We highly recommend having this done the day you move in.

Install an alarm system

My favorite alarm company is Intelligent Living Solutions. They are reliable and reasonably priced. We’ve been using them in our own home for 10+ years. Plan to spend $100 – $500 on installation depending on if you want motion sensors, door and window sensors, or glass break alarms. We strongly recommend having a security system if you’re buying a single-family house or a condo below ground, on the first floor, or one which has an exterior staircase.

It can take a week or more to get an appointment, so we recommend calling early and setting it up for the day of or the day after closing. Remember, you’re most likely to be burglarized in the first week you’re in a new home. Thieves look for people moving in since they count on new residents not having their security system set up yet.

Put a peephole in your front door if it doesn’t already have one. This isn’t hard to do and can typically be installed by a handyman. If you have a sliding glass door, buy a thick wooden dowel and keep it in the door track on the floor when the door isn’t open. We also recommend adding a jimmy plate and an auxiliary lock to any patio doors.

Very soon we should receive what’s called the Clear to Close from your mortgage lender and underwriter. This means your mortgage has been approved (your lender will fund the purchase of your new home) and we can move forward with the closing. The title company confirms the closing date.

This is excellent news!

Also, we can now schedule the final walk-through of your new home, which is usually conducted before closing. We can schedule it the day prior, but so many sellers are still in the midst of packing that it may not be practical. The day of closing is sometimes more convenient.

You’ve finally made it to the end – only two more steps to go. Now comes the painful part, letting go of your hard-earned dollars. It’s time to wire the down payment and the closing costs.

One business day before your closing date, either your mortgage lender or title company will email you a close estimate of the amount of money needed to close as well as the wire transfer instructions. Unfortunately, the total amount usually is not available farther in advance as the title company needs to receive final figures from your lender (if utilizing a mortgage).

How Do You Pay?

Amounts under $10,000 can be paid with a cashier’s check; however, amounts over $10,000 must be wire transferred. You’ll wire transfer these funds in one lump payment the DAY BEFORE CLOSING at the latest. If the title company is unable to give you the exact amount due by the end of the day, an estimate will be provided by your lender.

Your title company will email you the wire transfer instructions and the account number to which to send the wire transfer.

IMPORTANT: Do NOT follow wire transfer instructions unless they were sent to you by the escrow closer from your title company. Hackers are everywhere, and one scam is to send buyers fraudulent wire transfer instructions in an attempt to divert your dollars into their accounts.

All wire transfer and financial instructions will come via a password-protected or encrypted email from the escrow closer and not from your lender or me.

Before you transfer your funds, call the escrow closer directly to confirm the wire-transfer instructions. DO NOT rely on the phone number in the email as this number would be fraudulent if the email is fraudulent. Look up the phone number for your escrow closer through Google or by asking me.

Please be aware that if you don’t transfer the funds the day before closing, closing has to be delayed because the title company will not accept cash or a check.

Once you’ve made the wire transfer, call your closer to confirm that the title company received the funds.

AGAIN, I urge you to be careful when sending over your wire transfer to make sure it isn’t being directed to a fraudulent account.

Remember, at closing, any overage/extra money you paid will be refunded back to you via a check.

The walkthrough usually occurs right before closing and is a chance for you to view the property one more time to make sure there aren’t any surprises. The walkthrough takes about 20 minutes.

We could schedule the walkthrough earlier but so very often the seller is still working feverishly to pack, and the home is not ready to inspect.

Here’s what you should check at the final walkthrough:

1. Verify that all repairs have been made. Be sure to obtain copies of paid receipts and any related warranties in advance of the walkthrough.

2. Make sure all of the appliances are still working.

3. Check to make sure the sellers didn’t damage anything moving out.

4. Look to make sure all items included in the sales price (lighting fixtures, blinds, curtains, etc.) are still there. This includes anything that was attached to the walls previously such as shelves, TV mounts, etc., unless noted as being excluded on the contract.

5. Screens and storm windows are in place or stored somewhere.

6. Test the intercom, doorbell, alarm, HVAC, and hot water to make sure they all work.

7. The property should be in “broom clean” condition, meaning surfaces have at least been swept or vacuumed, and there is no visible debris.

8. Ask when the trash is picked up, where the parking is, or where the storage unit is, if applicable.

9. Get the garage door opener (if applicable) and any other remote controls.

10. Locate any instructions and warranties for appliances and fixtures.

Make sure all personal items of the seller and all debris have been removed including food in the fridge, etc.