There are enough steps in a home transaction that it can start to feel overwhelming. One of the most important steps is the home inspection.
Home inspections are often treated as afterthoughts, but they are incredibly important for both buyers and sellers. For buyers, the home inspection is an opportunity to examine the home before investing in it. For sellers, the home inspection can unveil issues that reduce a property’s value or even jeopardize a sale.
Whether you’re buying or selling, here’s a look at everything you need to know about the home inspection.
Why is the Inspection Important?
This might surprise you: A home inspection is not required. If you’re taking out a loan, your lender will require an appraisal. But lenders will provide financing without an inspection and there’s no government entity that requires inspections, either. So why are inspections almost always completed?
Because buying a home is likely the largest investment an individual or family will ever make, the home inspection is the only chance the buyer has to let a professional closely inspect a home’s integrity and major systems. Also, any buyer’s agent worth hiring will insist on an inspection.
A Checklist: What the Inspection Includes
A home inspection focuses on a property’s major systems (like its electrical system), its essential elements (like the roof), as well as its foundation and overall integrity.
The inspection typically takes place early in the sales process, usually after offer acceptance but prior to appraisal. An early inspection gives the buyer and seller ample time to resolve any issues an inspection uncovers before the closing date.
The American Society of Home Inspectors (ASHI) is an association that brings order to the world of home inspections. It provides a number of resources that help inspectors nationwide do good work that meets consistent standards. The ASHI offers a basic home inspection checklist that includes:
•Plumbing
•Electrical System
•Roofing
•Air Conditioning
•Heating
•Fireplaces
•Insulation
•Ventilation
•Exterior
•Interior
•Structure
The ASHI also provides a more detailed list of what inspectors should look for within each of the broad categories. For example, inspection of a home’s plumbing system includes fixtures, faucets, water heater, drains, waste and vent systems, sump pumps and sewage ejectors.
The typical home inspection does not include air quality, termites or swimming pools. The buyer can pay extra for these non-standard inspections. For example, if a home has experienced mold issues in the past, it’s a good idea to pay extra for an air quality inspection.
The entire inspection should last between two and four hours. If you pay for non-standard inspections or if you’re buying a particularly large home, the inspection may take longer. Never rush the inspection. Again, this is the buyer’s only chance to closely examine the property and you should leave plenty of time for the inspector to show you his or her findings.
What Issues Do Inspections Typically Uncover?
You never know what will emerge from an inspection. Experienced real estate agents can tell off-the-wall stories about the obscure issues that have tanked transactions. That said, the most common issues fall into three categories:
•Drainage: You need water to channel away from your home rather than pool around it. Poor drainage can lead to foundation damage, rot and mold – all of which the buyer wants to avoid.
•Electrical System: Exposed wires, insufficient power supplies and general fire risks are among common issues with electrical systems – especially in older homes.
•Roofing: A roof is a home’s protection from the elements. A roof is also expensive to replace. An inspector will take note of a roof’s age and integrity. Any roof that is not 100% watertight is an issue.
What Does an Inspection Cost?
The buyer pays for the inspection. Most inspections cost about $400, though you may pay anywhere between $300 and $500, depending on the unique characteristics of the home. This cost is not paid at closing. The buyer pays the inspection company directly and the inspection company then delivers a comprehensive report.
The report will describe minor defects, major defects and safety issues present in the home. The buyer can often negotiate concessions in response to any defects or issues reported. Once an inspection happens, both buyer and seller are motivated to close the deal – so fruitful negotiations are common.
Do you have any questions about home inspections? I’d love to answer them or provide guidance as you navigate a home transaction. Get in touch with me at pthessen1@gmail.com.
