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Inspections and Warranties Inspection Information First, ask your friends, neighbors and relatives for a reference. The home inspector should be certified through one of the major home inspection associations (such as the National Association of Certified Home Inspectors). Also, you may want to ask your real estate agent for help. Keep in mind, a professional home inspection will cost you some money. However, it is well worth it because it can save you many more times over the cost of the inspection. Most inspectors will follow a standard report format. They should even be able to show you a sample of their work, or a blank report with the subject headings. At a minimum, make sure the report covers:

• Foundation: Are there obvious cracks? Any apparent shifts in the foundation?
• Roof: Does it appear new, old, or of an indeterminate age? What is the overall condition?
• Evidence of leaks: Check inside as well as outside. Check all ceilings and areas around windows.
• Basement or crawlspace: Is there dampness? Is there adequate insulation?
• Attic: How does the interior of the roof structure look?
• Quality and workmanship: In general and in any additions
• Apparent energy efficiency: Does the house appear tightly sealed?
• Electrical: Any obvious malfunctions?
• Plumbing: Any unusual noises or malfunctions?
• Appliance condition: What is the age and condition of the stove, dishwasher, refrigerator (if included), etc.?
• Heating/cooling system: Does it seem to do the job heating or cooling?
• Exterior: Is the house going to need repairs or paint soon?
• Lot: Does the drainage appear good--and away from the house? Are there any trees encroaching on the roof or foundation?

A good home inspection will normally cost less than $500, depending on the area that you live and the size of the home. In some cases (such as smaller condominium apartments which don't have basements or attics) it can be as little as $150 to $200. It can save you thousands of dollars; so it's well worth the investment.

Home Warranties

Whether you are buying a new or an existing home you should consider a home warranty to help you if something goes wrong with your home.

Here's what HUD has to say about warranties: "Home warranties offer you protection for a specific period of time (e.g., one year) against potentially costly problems, like unexpected repairs on appliances or home systems, which are not covered by homeowner's insurance. Warranties are becoming more popular because they offer protection during the time immediately following the purchase of a home, a time when many people find themselves cash-strapped."

In effect, when you buy a "warranty" product, you are buying a kind of insurance coverage that will cover items your basic home insurance policy doesn't. You can buy a warranty on a home as either the buyer of a home or the seller of a home. If you are selling a home, a home warranty plan (which will be "passed on" to the new owner) can be a selling point. If you are buying a home, purchasing your own home warranty can give you peace of mind that if something goes wrong during your coverage period, you don't have to be subject to a large repair bill.

Often, if you are buying a newly constructed home, you will be able to buy a warranty policy for a much longer time period. Most warranty policies on an existing home will be limited to a year or so. However, if you are buying a new home from a builder, you can sometimes buy warranties for up to 10 years. This can really help in those situations where it turns out that the builder made a mistake. You can go through a costly lawsuit with the builder (and not be assured of getting your money) or you can have a warranty policy. In some cases, a quality builder will even sell you your newly built home with a warranty policy purchased by the builder. Given that some building problems can take some time to become evident, it often makes very good sense to have a warranty policy on a new home.