Is a home inspection required before purchasing a home? This
is a question that many homebuyers in hot seller's markets have. When faced
with many offers, desperate buyers may be tempted to forego the property
inspection in order to placate the sellers. Some people worry if a home
inspection is really worth the money.
According to the National Association of Realtors, house
sales in August 2020 reached their greatest level in 14 years. A professional
house inspector was employed by nearly 80% of homebuyers. Once a buyer has
signed a contract, the house inspection is the most important contingency.
Because of the house inspection technique, the buyer may
spend more time studying the home's general condition. The results of the house
inspection are a source of fascination for many homebuyers. They have no
concept what happens during the inspection or how to handle the problems noted
in the house inspection report.
We'll go through the fundamentals of how it works and why you
should invest in one. In addition, we'll show you how home inspections can save
you money in the long term.
What Is A Home Inspector's Purpose?
The major reason for hiring a home inspector is to find flaws
in sections of the property that are easily accessible. If faults are unnoticed
before the sale, you could end yourself paying hundreds of dollars to have them
fixed later. A house inspection is a non-invasive visual check of a property's
accessible areas.
When a home buyer makes an offer, they have only been inside
the property one or two times. Some folks will even purchase a home without
seeing it first. During the house inspection, the buyer has time to do their
homework and confirm that all of the critical components are in working order.
Following a home inspection, the house seller may be required
to pay for major repairs indicated in the inspection report. By a wide amount,
the cost of these repairs outweighs the cost of an inspection.
The seller is more inclined to employ specialists to do these
repairs because the sale of the home is predicated on them being completed
properly. If the parties are arguing a lot, it's better to negotiate a lower
sales price rather than having the seller do the repairs.
Moving into a house with hidden safety or structural faults
is less likely with a home inspection. Keep in mind that a home inspection will
disclose any issues that exist now or may arise in the future. It simply
displays the problems detected during the inspection.
A Home Inspection's Logistics
Understanding the mechanics of the house inspection process
is critical. Consider the case below:
Who is in charge of the inspection?
What is the cost of a house inspection?
When should the inspection be carried out?
Is it necessary for the buyer's agent to attend the
inspection?
What is the average time it takes to complete an inspection?
What is the protocol for a house inspection contingency?
Let's go through these questions a second time.
Who is responsible for the costs of the home inspection?
The house inspection is usually the responsibility of the
home buyer. They'll engage a professional house inspector to inspect the entire
property, from the roof to the foundation.
The homebuyer is responsible for the cost of the inspection.
Some sellers will pay for a home inspection before putting
their house on the market. When it comes to selling your home, this is a wise
decision. It highlights repair issues that can be solved before entering into a
contract.
The majority of sellers, on the other hand, do not employ the
services of a home inspector. The buyer is usually solely responsible for the
house inspection step of the selling process.
You can still save money if you pay for your own inspection
if you're buying a house when the seller recently had one done. It's dangerous
to trust a report from a competition who is trying to sell their home. One of
the main reasons why most sellers do not engage an inspector before putting
their house on the market is because of this. They entrust them with the
buyer's due diligence duties.
What Is the Price of a Home Inspection?
Depending on the size and type of the home, a standard home
inspection might cost anywhere from $250 to $450. The age of the house might
also affect the price. Your home inspection might easily cost $1,000 or more if
you live in a wealthy area like New York. The cost of your inspection should
not be affected by the home's purchasing price.
In addition to the required house inspection, there are
various more types of inspections to consider. For radon, mold, sewer,
structural, and HVAC inspections, you'll need to contact professionals.
Additional inspections may soon become prohibitively expensive.
When will the home inspection take place?
The majority of house inspections occur within a few days of
a property going under contract. A buyer will put down earnest money after
signing a sales contract. They'll schedule a house inspection after that. On
occasion, realtors would schedule it for their clients.
The seller will do a home inspection before putting the house
on the market. The seller pays for around 20% of all house inspections. This is
becoming increasingly common in some locations.
Is it necessary for the buyer's agent to attend the inspection?
Although it is not required, some buyer's agents will attend
the house inspection. The buyer's realtor is not required to attend the home
inspection in some states. According to them, realtors may have a say in the
process.
Because the matter has recently been discussed in court,
state realtor groups have urged that realtors stay out of the process. This issue
is approached differently by each state and brokerage.
How long does it take to inspect a house?
Depending on the style of home, the house inspection could
take anywhere from two to three hours. After the inspection is conducted, most
home inspection reporting platforms can compile the report and email it to you
in minutes. Because the information is printed on paper, some older
applications may take a day or two to process.
A Requirement for a Home Inspection
Inspection contingencies are common in residential real
estate sales contracts. This contingency usually covers the time it takes for
the buyer to hire an inspector, get the report, and document any repairs that
are needed.
The seller will negotiate these issues with the buyer's agent
after receiving the report and any repair requirements. These conditions will
be added to the sales contract once the two real estate agents have reached an
agreement. The dealer will normally execute any necessary repairs within one to
two weeks.
A buyer's house inspection is one of the most important
contract contingencies. After this stage, a property buyer's ability to back
out of a contract is limited.
What Should a Home Inspection Look
Like?
Some of the most critical topics to mention in your home
inspection report are as follows:
The attic
The basement
The bathrooms
The bedrooms
The kitchen
The heating and cooling systems
The electrical systems
The plumbing system
The roof
Structure & Grounds
The Attic
The house inspector will enter the attic to check for
evidence of decayed wood or structural problems. Poor ventilation, water
ingress, and electrical problems will all be investigated.
The Basement
The home inspector will search for signs of dampness and
cracks in the walls when inspecting the basement. They'll also look for leaks
and ensure that the sump pump is in functioning order.
The Restrooms
The plumbing, electrical outlets, GFCI functionality, and
adequate ventilation in the lavatories will all be inspected by the house
inspector. During a bathroom inspection, the drains and the operation of the
toilet are also examined.
The Bedrooms
The ceilings, floors, and walls of the bedrooms will all be
straight when the house inspector inspects them. They'll also inspect the
structure for damage, cracks, or sagging. Each room's electricity and lights,
as well as the air conditioning and heating circulation, will be scrutinized.
The Kitchen
The kitchen plumbing will be examined by the home inspector
to ensure that it is in good operating order. All of the equipment will be inspected,
including the refrigerator, oven, stove, and garbage disposal. They also check
the dishwasher and the water pressure.
HEATING AND COOLING SYSTEMS
The house inspector will investigate any gas odors in the
region around the heating and cooling systems. This could indicate a gas leak.
They'll also check to see if the heating and cooling systems are in good
working order. They'll make sure the air from your HVAC system is routed evenly
throughout your house.
Electrical Systems
The wiring and electrical panel will be evaluated as part of
the electrical system examination. They'll be looking for anything that isn't
code-compliant, such as exposed cables. Safety tests are performed on service
panels, as well as telephone and network cables.
The Plumbing System
The house inspector will assess the plumbing system for any
leaks or damage. They'll also look over the water heater to see if it's in
working order. They'll also monitor the temperature to ensure it doesn't exceed
125 degrees Fahrenheit.
The Roof
The home inspector will look for hail damage when inspecting
the roof. They'll examine for rotten timber around chimneys, missing shingles,
and water penetration, among other things.
The Grounds and Structure Outside
The foundation will be investigated, and the entire structure
will be assessed by the house inspector. They'll inspect the foundation floor
and supporting walls for cracks or buckling. The foundation may have shifted if
cracks spread from the corners of windows and doors.
They'll also inspect the deck, fence, shed, and any other
non-attached structures for damage. Many home inspectors will go around the
house looking for anything unusual.
What Isn't Supposed to Be Included in
a Home Inspection
Water pollution and radon tests are not included by a house
inspection, but the majority of dangers are. Furthermore, the home inspector
may overlook mold. These services are available from modern house inspectors
and can be included in your inspection report.
The presence of asbestos or vermin will not be verified
during a house inspection. If you are concerned about any of these issues, you
should engage a professional inspector to look into them. Specialty inspections
may take longer to perform and cost more money. Think about what you'll need at
the residence you've picked. Before you order a home inspection, talk to your
Realtor.
Objections to Inspections and How to
Handle Them
Negotiation is required to resolve an inspection.
You'll be able to address the issues mentioned in the
inspection report once you've completed the house inspection. Before the sale,
you'll decide who will repair what and what repairs are required.
The selling agent and the buyer's agent will communicate back
and forth in order to reach an agreement that is beneficial to both parties.
The agents will put the terms in writing and add them to the sales contract via
an amendment once they have been agreed upon.
The repairs will be handled by the seller, who will provide
receipts as confirmation of completion. The buyer will conduct a last
walkthrough before closing to ensure that all repairs have been completed.
If the inspection turns out to be a nightmare, you may want
to get out of the sale. Your real estate agent will be able to assist you in
considering all of your possibilities.
How to Hire a Reliable Home Inspector
Home inspectors can be found in a variety of sizes and
shapes. In other states, such as Colorado, home inspectors are not needed to be
licensed by the state. One alternative is to use the International Association
of Certified Home Inspectors' website to find a good inspector in these states.
This tool will assist you in locating an inspector who meets Internachi's
requirements.
A home inspection can also be referred to you by a local
Realtor. They've dealt with a number of different inspectors across the region
and usually have a few favorites. Because skilled inspectors may become
unavailable rapidly, it's ideal to have two or three inspectors to pick from.
Summary
Buyers are questioning the importance of a home inspection
due to a shortage of inventory in many real estate markets across the country.
Sales contracts can say things like "no repairs will be made" in a
hurry. Even in these situations, it's critical to have the property inspected
before purchasing it.
Even newly constructed homes that have never been occupied
have problems. For a little charge, you can have your home assessed to see what
problems you might be inheriting when you buy it. When buying a home, we strongly
advise against missing a home inspection.