All About the Home Inspection

Your Home Inspection

Home InspectionThe Importance of an Inspection:  A home inspection allows the buyer to have a good idea of the overall condition of the house that he or she is in escrow to purchase.  Additionally, by spending time in the house with the inspector, the soon to be new owner learns some valuable practical information about the house. 

Who Pays?  The buyer typically pays for a home inspection after the seller has accepted the buyer’s offer.  The standard purchase agreement calls for a seventeen day inspection period.  A savvy buyer, in an attempt to make his or her offer more attractive to the seller, will shorten that inspection period.

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Selecting Your Home Inspector
Angie’s List: Oct 30 2012 – by Angie Hicks

Dear Angie: My son is getting ready to buy his first home. What advice can you offer about what to look for when choosing a home inspector? – Debbie K., Glen Burnie, Md.

Dear Debbie: Your son’s purchase will likely be one of the biggest investments he’ll ever make, so getting a quality home inspection is really important as he prepares to buy.

A qualified home inspector is going to look over the entire structure and gauge its stability and potential hazards.

Your son should pick an inspector who has the proper training and credentials and has favorable reviews from clients on consumer review sites like Angie’s List.  (A referral from a friend or an experienced real estate professional is also a great way to find one! – TB)

Your son should ask to see proof of state certification or proof of membership in a national organization, like the National Association of Home Inspectors (NAHI), National Association of Certified Home Inspectors (NACHI) or the American Society of Home Inspectors (ASHI). Both NAHI and ASHI require a minimum of 250 inspections to certify an inspector.

Your son should also ask to see proof of licensing if his state requires home inspectors to be licensed. Maryland, for example, has required home inspectors to be licensed since 2008. He should also check that the inspector carries liability insurance and errors and omission insurance, which protects both the home inspector and your son in the event a major problem with the house goes undetected and the inspector is found accountable for the oversight.

A good home inspector will charge several hundred dollars – the costs will vary depending on the size and age of the home – and typically takes three to four hours to perform the inspection. The inspector should look at the structure, roof, heating and cooling system, plumbing and the electrical system and provide a detailed report of his or her findings.  (The typical cost for a home inspection in our area ranges from approximately $300 for a small condominium to $650 and beyond for a larger house with a pool. – TB)

Your son doesn’t have to be present for the inspection, but I always suggest that he is so that he and the inspector can discuss the findings and potential issues as they go along. Plus, this will help familiarize your son with how the home works and where everything is located.

Few houses are perfect, so your son should expect some issues to be found. He shouldn’t hesitate to ask the inspector follow-up questions after receiving the report.  (There is no such thing as a perfect house.  All houses, even brand new houses, will have issues. – TB)

A good home inspection can be beneficial in more ways than one. With the housing market still weak, your son can use the home inspection not only to verify to the condition of the house, but to also negotiate the price down to cover the necessary repairs or to have those repairs made as a condition of the sale.  (I do not agree that an inspection should be used to renegotiate the purchase price.  This is a sneaky and, in my opinion unethical, tactic that lesser real estate agents sometimes use.  IMHO, the purchase price should not be renegotiated UNLESS the inspection reveals a serious and substantial item THAT WAS UNEXPECTED when the purchase offer was written. – TB)

About the Home inspection

For most of us, our home is the biggest investment we will ever make. For those preparing to buy, a quality home inspection is key. An inspection is usually required for a home purchase.  (Not required, but HIGHLY advisable. – TB) A quality home inspector will look at every nook and cranny to gauge structure stability, present and potential dangers. But remember, a home inspection is not a guarantee or a warranty – it may not find everything.

How to hire a home inspector

Do your homework:  Ask to see proof of state certification or proof of membership in the National Associations of Certified Home Inspectors (NACHI), National Association of Home Inspectors (NAHI) or the American Society of Home Inspectors (ASHI).

Experience:  Both NAHI and ASHI require a minimum of 250 inspections, however most experienced professionals will say it’s better to find someone who’s performed at least 1,000 inspections and has at least three-to-five years of full-time experience.

Licensing & Insurance: Ask to see proof of licensing if your state requires home inspectors to be licensed, and inquire about proof of general liability insurance as well as and errors and omission (E&O) insurance.

Costs:  Home inspections generally cost at least $400, and typically take three to four hours. The costs will vary depending on such factors as the age and size of a home.  (The typical cost for a home inspection in our area ranges from approximately $300 for a small condominium to $650 and beyond for a larger house with a pool. – TB)

Get involved: While it’s not required that you attend the inspection, you should attend the inspection to discuss expectations and findings.  (Tagging along with your inspector is also a very good learning opportunity. –TB)

Know what to look for.  This includes structural problems; roof damage; fire hazards, such as improperly vented chimney flues; electrical safety issues, including old wiring; and problems with plumbing and major appliances, like the HVAC system and hot water heater. Inspectors should physically crawl the attic and crawl space, if possible, rather than just taking a quick look around from the opening or doorway.

Read the report:  Many inspectors provide the report the same day as the inspection. The report should be thorough and easy to understand and should include narrative accounts of the inspector’s findings that are specific to your house, along with pictures and diagrams. Many inspectors will also include photographs with their reports. Keep in mind that few houses are perfect, so you should expect some issues to be found. Don’t hesitate to question your inspector about the report.

Home inspections aren’t just necessary for old homes:  Newer homes can have just as many problems as an older home. And, if you are building a home, inspections at key points during construction should be a part of the process.  (I agree 100%! –TB)

Useful info: A home inspection report reveals problems that need to be fixed. You might use this information to renegotiate the price that you originally offered or you may be prepared to adjust your selling price.  (Again, IMHO, the purchase price should not be renegotiated UNLESS the inspection reveals a serious and substantial item THAT WAS UNEXPECTED when the purchase offer was written. – TB)

Pre-listing inspection

A home inspection can be used as a fast-track selling tool. Getting a home inspected before it’s listed puts the cost on the seller or listing agent, but can provide a written report on the pre-sale condition of the property. It can also uncover conditions or situations that might compromise a sale.  (If a pre-listing inspection uncovers a serious issue with the house, that issue can be addressed and corrected before it has a chance to jeopardize your sale.  –TB)

When the real estate market is strong for sellers, it’s more common that buyers purchase the home inspection to make sure there aren’t any surprise defects and to substantiate the purchase price. In an up market, sellers often forgo a pre-listing inspection because they know the buyer is less likely to walk away from the deal for fear of losing their chance to buy that property.

In weaker sales markets, when there are more properties available or fewer buyers, the buyer will sometimes use the inspection to verify condition and negotiate the price down to cover repair and improvement costs.  (AGAIN, unless the inspection uncovers an unexpected and substantial defect, it is “sleazy” to use the inspection report to renegotiate the purchase price.  You and your real estate professional should understand the local market and negotiate a purchase contract accordingly.  – TB)

Pre-listing inspections have other benefits. They help the seller decide what areas to work on to improve the home’s appeal. They help the agent set the seller’s price expectation and can be used to substantiate a higher asking price. Agents will have fewer issues to negotiate at the 11th hour, and buyers may even waive hiring their own inspection.


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