1.
Home Inspection – Unless you are an experienced investor, all Buyers get a home inspection. The Buyer hires a professional, certified home inspector (there are plenty around) and he or she come and look at the home. If it is nice, they say so and leave. Just checking to see if you are paying attention. Actually, they will climb up on the roof, crawl in the crawl space, look in the electrical box, and check the furnace and air conditioner to see if all is functioning well and properly. The list goes on and on. It usually last 2-4 hours and costs between $400-$700 depending on the size, age and condition of the home. This check will be written at the time of the home inspection and it will get cashed.
2.
Additional Inspections - You may also order a termite, radon, sprinkler system, well & septic and structural engineer inspections. That is something you and your Realtor will discuss.
This is 2nd round of negotiations. You, the Buyer ask for all the things you want to have fixed. They, the Seller, will tell you yes, no or some. If you and the Seller cannot work out your differences, you can then withdraw from the contract and request the return of your earnest money. In almost all situations, your earnest money will be refunded.
HOME OWNERS WARRANTY - This is an insurance policy that protects the Buyer from anything that happens to the major appliances, some plumbing and some electricity. Either the Buyer or the Seller can purchase it for the Buyer, but it is more common for the Seller to pay for it. It runs about $475 depending on the home owner warranty company, the size of the home and what all is covered. It runs for for the first year and any time the new home has a problem, they only pay $50-$60 for the repair. Even if the hot water tank, furnace or whatever needs to be replaced. The Buyer will be offered the opportunity to renew it at the after the first year.