No, But Highly Recommended A Home Inspection
The short answer is you don’t need to get a home inspection before signing a contract for deed. Home Equity Partner recommends it though so you know what to expect for future home repairs and maintenance. This way you can have proper expectations. Like taking a car in for a maintenance check before you buy it.
We have had customers who sign a contract for deeds without a home inspection. Generally, this is rarer but is often waived on newer homes or homes in hot markets. They also may be currently living in the home as renters and know the home very well and are simply trying to buy the home on a contract for deed instead of renting.
In the case that the home is actually being bought for you by an investor through Home Equity Partner you can also request the home inspection. Some investors may not need to get a home inspection depending on the type of purchase. They often choose to get one anyway for older homes.
Depending on the specific deal made, you are likely responsible for all maintenance of your home in a contract for deed because you now have equitable interest in the home. These major maintenance things can often be noted in an inspection. An older roof or furnace may be signs that repairs or replacement may be needed. You should plan for these repairs in the near future or ask the seller to fix them as part of the inspection.
Home inspections typically pay for themselves. Either by providing peace of mind, finding major issues that you would not have known about that cause you to pick a different home, or allowing you to negotiate with the seller – typically for most repairs than the actual cost of the inspection itself. A home inspection can be a great tool for the aspiring homeowner.
Learn More About Home Inspections: https://www.hud.gov/program_offices/housing/sfh/insp/inspfaq
Worst Case Scenarios Without A Home Inspection!
There are two unfortunate possibilities that could happen if you don’t get or obtain a home inspection. The more common is that you are unhappy with the condition of the home or costs to repair things after you move in. Walkthroughs only show so much. It may not indicate the condition of the hot water heater or how drafty the windows are. These are things that would come up in a home inspection. It would be unfortunate to have you change your mind on your dream home just a few months after moving in.
The less likely scenario is that a large issue arises right before you finalize purchasing the home years after moving in. It is a possibility that a leaking roof has caused major issues in the attic or foundation. This may have been caught early and you could have made more informed decisions with a home inspection. This is why a final walkthrough within 24 hours of moving into the home (i.e. closing on the home) is recommended.
While home inspections are important they aren’t perfect. We have seen our fair share of unlikely situations and unforeseen occurrences. A new part of being a homeowner!
Home Equity Partner will always suggest a home inspection and guide you through what they detail about your future home. We can always provide maintenance suggestions and estimates of costs. We want to provide a smooth transition into home ownership for you.
Learn more about our application process here: https://homeequitypartner.com/application/