Monday, February 20, 2017

Pre Closing Inspection

Pre Closing Inspection provides the buyer with an opportunity of inspecting a home that is up for sale before closing in and owning the home. It is a provision in real estate contracts where the Buyer or his authorized representative is permitted by the Seller to examine both the interiors and exterior of the property at a reasonable time prior to closing.

With recommendations from reliable realtors, the pre closing inspection should be set as closely to the closing date as possible, it is most preferred to have it immediately prior to the closing. This pre closing inspection is normally set up by the seller or the selling agent who has to be present during the walk through. The seller should ideally have already vacated the home before the inspection. Normally, depending on the nature, type and size of the home, this inspection should take around half an hour.

There are a number of considerations that need to be made in setting up a pre-closing inspection. Considerations and thoughts should be made on whether the home is occupied or vacant, whether the seller will move out completely before pre-inspection or closing which very important consideration or whether repairs are required.

Another important overlooked task by the buyer is making arrangements of having the utilities transferred. This task is normally overlooked may be due to the excitement of the buyer in having the property.

Discussed below are YouTube videos on various topics covered under Pre Closing Inspection and related issues.

The Pre-Closing Walk-Through: Buying A New Home In Chicago

This an interview with one of the influential Chicago real estate Attorney Lloyd Gussis who discusses some important issues to consider or do during a pre-closing walk through in buying a home. Some of the areas covered are;

Title Commitment

Gussis points out the importance of title commitment in closing. He says lenders always want a title commitment 2 to 3 weeks before the actual closing. This is because the lender is not going to accept the closing without it.

Home Inspector

The role and the importance of a home inspector are covered. Gussis points out why it is important to bring a home inspector with you on the final day of inspection. This gives the buyer a ‘better trained’ set of eyes of sporting mistakes and issues in both the interior and the exterior of the house that the seller need to fix. The home inspector is able to see the issues you as a buyer cannot see. The inspector should professional and not start advising the seller or the developer on how they should have fixed some areas, done some things or start advising the seller as this will create an antagonism between the seller and the buyer. Therefore, the buyer is advised to get a qualified and competent inspector.

Importance of inspection

Before closing, inspection prior to the closing day is important. The attorney shares the importance of inspection and why as a buyer you should not miss it. An important reason for inspection he says is to inform the seller to fix some of the things that need to be repaired before the actual closing. Failure to point out some of the areas that need fixing to the seller maybe because as a buyer you missed the inspection, means you will incur the cost of fixing those areas after the closing.

Punch list

This is according to the attorney, a list of issues or problems with the property that the seller needs to fix. It consists of all the areas that the home inspector has found and the list should be submitted to the seller prior to closing. He points out that some developers or sellers accept the punch list even 30 days after the actual closing is done while others want the list before closing.

Home Inspection Checklist | Home Inspection Cost | What is a Home Inspection?

A video by Matt Leighton who discusses and explains home inspection checklist and areas related to home inspection.
Leighton kicks off by defining what Home Inspection is and according to him, home inspection is the evaluation of the condition of the home that is done prior to closing.
Before the closing, there is a home inspection contingency where as a buyer you go out and hire a home inspector to have the home inspected. The inspector looks at both the interior and the exterior of the house pointing out key areas that need attention. Once the inspector is done with the evaluation, Leighton points out that, he submits a written report with pictures attached of things that need to be fix and areas that might need repairing in the future. This is normally done on the same day or within 24 hours.
Among the key areas covered, Matt Leighton shares how much it would cost to get the services of a home inspector. He notes that the cost will depend on the nature, size, and type of the home among other factors. He estimates that getting a home inspector would cost between $300 to $500 but sometimes, he notes, it would cost you beyond the given range.

In the video, there are pre closing inspection tips shared and some of them include being there during the inspection, asking questions to the inspector about the inspection and the property, doing your own research prior to the pre closing inspection, not freaking out on the inspection reports and listening to your home inspector. 

What If There Are Problems During The Pre Closing Inspection?

In this case, the buyer should contact their closing representative or a real estate closing attorney as soon as possible to get advice on what to do. The seller should review the problems with the buyer’s closing representatives.

It is so much safer and easier dealing with the pre closing inspection problems as soon as possible instead of waiting to raise them at the closing table while the moving trucks are already set to you in the home.

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