Over the past few years, real estate prices in Long Island have been skyrocketing, forcing potential buyers to rethink how much they can honestly afford to spend.
According to the latest report from Multiple Listing Service of Long Island, the median prices of residential properties on Long Island increased 9% from August 2017 to August 2018, going from $445,000 to $485,000. The report also stated a confluence of factors contributing to the rising home prices, including rising mortgage rates, changes in the deductibility of mortgage rates and property taxes, and the limited supply of properties in the market.
With all these factors at play, the red-hot Long Island real estate market has resulted in some anxious buyers skipping some of the must-dos during a home buying process, specifically a pre-purchase home inspection, which according to HomeAdvisor.com can cost around $278-$289. While skipping the home inspection might seem like an effective way to save a few bucks during the home purchase process, such a decision could actually cause increased costs and even a dangerous outcome for the buyer as soon as they sign the contract.
Horror Stories of Home Owners Who Skipped Home Inspection
A detailed and well-executed home inspection – while it can cost a good sum of money – is a significant investment that no homebuyer should ever skip; otherwise, they could face a similar, or worse conundrum than the following home owners, as recounted on the article from Bigger Pockets.
- Real estate agents Marie and David Haynes had one client who skipped the inspection because “he felt he knew enough about home construction and repairs.” Unknown to their client, there was a crack in the foundation which the seller hid from them by piling some bricks in front of it. It ended up the with client paying $6,000 to repair the problem.
- One homeowner in Alaska decided to sell their house, which was inspected only by their friends before they bought it five years ago. When they connected to a property manager to help fast-track the selling process of their house, it was revealed that their house had a septic tank that isn’t built to withstand the cold As such, they were required to replace it with a permafrost-friendly system which costs around $35,000.
- Real estate agent Brett Maternowski had a client who didn’t employ a home inspector, but rather her dad who was a contractor. The father “inspected” the property and gave her daughter the go signal to purchase the property. Two weeks later, the daughter called Brett to say that her newly-purchased housed didn’t qualify for insurance because it has a roof-over-roof system aka over roofing.
These horror stories only prove why Long Island home inspection, if conducted by a professional engineer, is not much of a cost compared to the unplanned expenses, safety risks, and all the headaches that these homeowners have dealt with. It’s definitely a must if the home buyer does want to buy the wrong house and suffer those consequences later.
How Can Home Inspection Actually Recover Its Cost?
In order to illustrate how Long Island home inspector can help potential home buyers save money in today’s rising real estate prices, we’ve detailed below some of the common issues that can be uncovered during a home inspection, and the costs that a buyer would have to shoulder if they fail to identify these issues before the end of the negotiation process.
- Roof – Roofing issues such as faulty flashing and warped shingles are one of the most common issues found by home inspections. According to HomeAdvisor.com, roof repair can range between $300 and $1300, but to replace a roof entirely can cost between $5,000 and $10,000.
- Plumbing – Plumbing issues, even small leaks and noisy pipes can cause water damage that can cost between $1,00 and $4,100 to repair.
- HVAC System – Ensuring that existing HVAC system of the home is functioning properly is crucial to both safety and health of the household. By hiring a home inspector, problems with the existing system can be determined and corrected without the home buyer shelling out any amount of money from their own pockets. Latest estimates suggest that a faulty furnace replacement cost can range between $2,500 – $6,100, while replacing an inefficient air conditioner can costs around $4,000 – $7,200.
- Electrical Systems – Any issues on the electrical system of the home can escalate into more serious life-safety issues if not identified and repaired immediately. With the expertise of a home inspector, electric meter, circuit breaker, wires, switches, and electrical outlets will be examined, allowing the buyer to save around $160-$500 on labor cost
- Foundation – Foundation issues are one of the most overlooked structural problems during the home buying process. When not addressed immediately, a home buyer can expect to pay as high as 12,000 for repairs of significant foundation problems.
In conclusion, Long Island home inspectors are home buyers’ best ally to ensuring that the property they’re purchasing is totally worth their investment.
Tauscher Cronacher is an engineering firm that offers standard home inspection and green inspection services to all residents in the New York City and Long Island area. Contact us to learn more about our home inspection services today.