A pre-settlement assessment is crucial to ensuring that there are no hidden problems in the home.
Investing

Pre-Settlement Inspection Checklist: What You Need to Look For!

The process of buying or selling your home is exciting, but it may also feel daunting. You have so many details to think about and deadlines to meet. It is easy to overlook things in your rush to get everything in order.

However, you do not want to forget the pre-settlement inspection checklist. Your pre-settlement assessment is crucial to ensuring that there are no hidden problems in the home. Your agent at Nest Realty can help you keep track of all the vital details surrounding your transaction, including your home inspection.

The Property Looks Great. Why Do I Need a Pre Settlement Inspection?

The old saying that there is more than meets the eye applies here. Your final pre-settlement inspection is your last chance to change any terms or request any price reduction because some repairs are necessary.

The pre-settlement inspection can save you thousands of dollars, and untold misery should you discover several problems with the property.

Remember, if you find issues that need to be repaired or addressed after you sign at your settlement, it will be up to you to find the money to fix things.

*For Example*

Emily and Dean decided to purchase a house. It was a little older than they would have liked, but the home and landscaping were gorgeous. The price and location were spot on, and they felt this was the perfect home.

On the advice of their Nest Realty agent, Emily and Dean arranged for a professional pre-settlement inspection before the settlement. The inspector found evidence of several leaks in the roof that had been poorly repaired as well as significant termite damage in the garage.

The sellers arranged repairs for the roof leaks, which would be inspected again before Emily and Dean signed off on them. Thanks to the pre-settlement inspection, Emily and Dean were able to renegotiate terms with the seller. Additionally, they received a price reduction to offset the extensive repairs to the termite damage in the garage.

While you can ask the seller for various things like allowances for repairs or updates, they are not obligated to accept these terms. There is a chance they will offer alternate terms or simply refuse altogether. No matter how much you love a home, do not be afraid to walk away if the terms are not correct.

No one wants to walk away from a home that seems just right. However, you owe it to yourself to make sure you buy a safe and sound home, not a money pit where you will be miserable and possibly broke.

You also have to do an outdoor inspection.

Nest Realty’s Pre-Settlement Inspection Checklist

There are many things to look for while inspecting the property you want to buy. For the sake of organisation, here is a pre-settlement checklist of the top ten things to look for during your inspection.

  1. Look for signs of water damage. This includes water stains, mould, corrosion, or other signs of water penetration, especially in bathrooms.
  2. Inspect all of the ceilings. Look for any sagging, bubbling, or water stains. Also, be aware of any plaster falling from the ceilings.
  3. Make sure all electrical switches are operational. Check all of the outlets (your phone charger is great for this). Look for sparks or listen for crackling sounds when checking these.
  4. Check the water pressure and drainage by flushing toilets and running taps. Pay attention to slow drains or leaks that could denote other issues.
  5. Look for bumps or unevenness on the floors. Also, check for warped flooring peeling edges of laminates or crumbling stone materials.
  6. Check external rooflines to make sure they are straight. At the same time, look at gutters and be aware of rust. Additionally, inspect the downspouts as well as the connections to the home.
  7. Look for cracks in the walls. Check the plastering for fine lines that could turn into larger cracks.
  8. Open and close all cupboards and drawers to make sure they open and close smoothly. Check for any odours that could be indicating mould or mildew. Either of these can mean problems with water leaks.
  9. Test any appliances that are included in your purchase. This includes furnaces, air conditioning units, and water heaters.
  10. Do an outdoor inspection. Look for areas of standing water, cracks in the drive or sidewalk, or fences in need of repairs. Check the lighting in alfresco areas, ensure the garage door opens and closes easily and if the yard includes a pool, check for leaks or damages.

Additionally, it is wise to arrange a professional pest inspection as well as a check for asbestos. If the home has either, you may want to rethink your purchase plans. Repairing termite damage can cost close to half of what you pay for the house. Asbestos repair is also costly.

Whether this is your first time or your 50th time buying or selling property, remember that it is not wise to go through the process without the support of an experienced professional, like our team at Nest Realty.

Our agents can walk you through the entire process, including the pre-settlement inspection. For answers to your questions or to make an appointment, reach out to the team at Nest Realty. We are here for you.

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