Inspectors will alert you to expensive problems such as mold and water damage, faulty wiring, cracked or blocked chimneys, termites or furnaces on their last legs. And they will go places most buyers won't, such as crawl spaces and attics, where these problems lurk.
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Often these hidden problems can pose a real threat, Goldstein says.
In one home he inspected, after the cover was off the furnace, he found a cracked heat exchanger that was shooting flames away from the unit. The real-estate agent said it wasn't a problem, at least according to her husband, who was a contractor.
Goldstein told the agent they could call the local gas company to get a second opinion. The gas company representative insisted the owner replace it immediately or not run it — during one of the coldest days of winter. The buyer who wound up with the home got a new furnace, saving thousands of dollars and gaining peace of mind for years to come.
A home inspection can also help you cut your energy bills. An inspector might recommend new insulation if yours is inadequate. That might cost $1,000, but could be paid off more quickly than new windows that cost $10,000. Inspectors can also help you find state, federal and local energy rebates and incentives at sites such as Savebigbread.com.
Of course, Goldstein says, a home inspection is only as good as the inspector, so try to find someone who has already done hundreds of inspections. Find ASHI-certified inspectors in your area.
Don't pass up the chance to accompany the inspector, Goldstein says. You will learn a lot about the intricacies and upkeep of the house — such as opening and operating the circuit-breaker box — and be alerted to things that aren't in need of immediate repair but might pose a problem in the future.
Housing snapshot
Limited housing inventory contributed to a 1.5% drop in existing-home sales, which fell to 4.55 million in May from 4.62 million in April, according to the National Association of Realtors. However, the national median home price continued to climb, rising to $182,600 in May, a 7.9% increase from the same time a year ago.
Looking a little bit further forward, the NAR's Pending Home Sales Index, which measures contract signings rather than closings, rose 5.9% to 101.1 in May from 95.5 in April. It is 13.3% above May 2011 and tied with March of this year, which was the highest level since April 2010, when buyers were rushing to beat the expiration of the homebuyer tax credit.
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"The housing market is clearly superior this year compared with the past four years," NAR chief economist Lawrence Yun said in a statement.
"Actual closings for existing-home sales have been notably higher since the beginning of the year, and we're on track to see a 9 to 10 percent improvement in total sales for 2012," Yun said.
The NAR expects the national median existing-home price to rise 3% this year and 5.7% in 2013.
Questions? Comments? Do you have a question about buying or a suggestion for a future topic in this column? Submit either in the comments section below or on Facebook, or email msnrealestate@live.com. Brief questions have the best chance of being selected.
