Phase 4: Inspecting, Investigating, and Reviewing the Property

Information for Home Buyers

Once we have a contract we will have five days after the “Time Reference Date” of the Contract to secure financing and ten days after the “Time Reference Date” to do other inspections and investigations.

Since a lender will not put a mortgage on an uninsurable home, it is best to talk to your insurance agent during the first five days. If the insurance company requires a new roof, then guess what, we’re going to have to either negotiate with the Seller for a new roof or decide to cancel the contract while you can without being considered to be in breach of contract.

As the Buyer, you get to choose who will do your inspections, who will be your mortgage lender, and who will be your insurance agent.

However, these aren’t the only things to look into. This is the time to find out how you can use the property, whether or not it has storm drainage issues,environmental issues, ghosts, etc.

This is also a good time to check the crime rates in a particular neighborhood. Be diligent in checking the crime maps, because the geo-mapping software systems are not always very accurate and the problem can vary from community to community depending on their funding to update their software. Often the maps put the red dots in the wrong place. So, while there may be a criminal nearby, the exact location may be incorrect on the map. For example, if you find a registered sex offender on the block, you may want to check further and look by the address lists for that zip code and verify the addresses and house numbers of particular offenders.

Another good idea is to go into the neighborhood and knock on the doors and ask the closest neighbors what they think about where they live. You’d be surprised how candid they will be. If you don’t like the people you meet, then perhaps you should select a different neighborhood.

If you are concerned about psychological impact issues and want to know about crimes committed at a particular residence or if you want to know about ghosts, now is also the time to investigate. You can search public records or you can ask the Seller directly, but you must state what you are worried about and ask in writing. They do not have to answer, but usually they will be very cooperative in this regard.