When Buying, Plan and Budget for Doing your “Homework”

Everyone agrees that it is an excellent time to purchase real estate, if it makes sense for your unique financial situation. Taking into consideration prices and current interest rates, affordability for homes in the greater Portland area hasn’t been this attractive in many years.
In working with many first time buyers, I always want to remind them that there is more to purchasing a home than getting pre-approved, having money for a down payment, and finding the home of their dreams. It is also important for all home buyers to budget for doing their “homework” when they have identified and agreed on terms to purchase their future home.
Home inspections are a crucial part of the buying process. Usually, after mutual acceptance between buyer and seller, there is a period of ten days or so for the buyer to conduct all inspections they feel necessary to know everything they can about the workings of the home. Any issues that they want addressed after having the inspections need to be agreed to during this period.
Ten years ago, most home buyers would merely look at having a professional home inspection, which covers the overall condition of the home and its mechanics. Now, with more technology and information available, it is not uncommon for buyers to also include a sewer scope, radon test, soil test (if there is any evidence of past or current oil tank), and other inspections. I tell my clients to budget approximately $750-$1,000 for needed inspections and tests.
Although there is some risk in spending money on inspections and discovering the home may not be the home for you, it is money well spent to give you peace of mind on one of the most important financial decisions you will make.