6 Things to Know About Property Condition Assessments Before You Buy a House

You need to understand some basic things about property condition assessments if you're interested in buying a home. The following are six important things to know about property condition assessments. 

1. A property condition assessment can save you from making a bad investment in a home.

Buying a house can be stressful. That's because it's possible for the purchase of a house to turn out to be a bad investment. This can happen if a house has frequent and expensive repair needs after the buyer purchases it. Property condition assessments protect buyers from making bad investments by uncovering any potential malfunctions or damage in a home.

2. These assessments are important due diligence precautions that home buyers should take.

Property condition assessments prevent unpleasant surprises for the buyer after closing. A home buyer must do all reasonable due diligence to find out about any problems a home has before buying it. An assessment is an important part of due diligence efforts for those buying a home. 

3. A complete property condition assessment should include four different steps.

It's important to not neglect any key components of property condition assessments. A complete assessment should start with document review and interviews with the seller and/or any other party who is an authority on the condition of the property in question.

The other steps that are important parts of an assessment including a walk-through survey, an estimate on needed repair costs, and a property condition report detailing the findings of the assessment. 

4. Your mortgage lender might require a property condition assessment.

In some cases, those buying a house might not even have a choice about whether or not an assessment is performed. That's because some mortgage lenders require an assessment before they'll give final approval for a mortgage loan. 

5. A consultant can accommodate unique buyer needs.

One great thing about working with a property condition assessment consultant is that a buyer can discuss any specific concerns with the consultant. For example, a home buyer might be concerned about the condition of a property's septic system or roof in particular. 

If the buyer has particular concerns, he or she can stress them to the consultant and the consultant can look into these concerns in particular during the assessment. This helps to give the buyer more peace of mind when going ahead with the purchase of the property. 

6. The results of the assessment can help a buyer negotiate a lower price.

Property condition assessments don't just protect a buyer from making a bad investment. They can also make it possible for a buyer to get a property for less money.

Information found in an assessment can be used as leverage during negotiations with the seller. A seller may give in to a lower offer if an assessment finds repair needs in a home. The seller may deduct the estimated repair costs from the price of the home.