Few stages in the homebuying process have the same influence as the home inspection.
You might assume you know everything there is worth knowing about a house by the time you submit an offer. However, a home inspection allows you to bring in an authorized professional to carefully examine the property’s interior and exterior.
After a home inspection, you will receive an independent report that lists the main features of the house and indicates whether there are any major structural problems, potential dangers, and, or outdated systems. This report provides the information you need to negotiate the asking price based on what has to be fixed immediately and what can wait for improvements once you have moved into the property. You can ask the seller to make the necessary repairs if you’re unhappy with how the house is at present, or you can ask for a credit against the expense of repairs at closing.
When purchasing a home, you can get the most value from your inspection report by creating your own checklist. In this post, we outline what to look for in a home inspection, how to find a certified home inspector, and how to use the report to your advantage.
Home Appraisal vs. Home Inspection
Before we take a closer look at making an inspection checklist, let’s clarify the difference between a home appraisal and a home inspection.
An appraisal and a home inspection are not the same thing. Appraisals are used by mortgage lenders as a prerequisite in the home-buying process to verify that the property is worth the anticipated loan amount, using a qualified appraiser, who determines the estimated value of a property. An appraiser does not examine the property’s specifics in great detail. They only consider the general condition of the house as well as the property prices in the area.
In contrast, an inspection evaluates the components and construction of the house. Although they are not normally necessary, many home buyers decide to have an inspection.
Unlike an appraisal, the buyer can attend an inspection and ask the inspector to point out any problems and identify any issues that could cause trouble down the road.
Related Reading: What Is a Home Appraisal? The Ultimate Guide
What Is the Home Inspection Contingency Clause?
The home inspection contingency clause is an additional provision to a real estate contract indicating that the sale is subject to the house inspection’s findings. You will have a set amount of time to arrange any necessary follow-up inspections if you include a home inspection contingency clause in your contract. For instance, if an issue with drainage in the house necessitates a more thorough investigation, the inspector could suggest an additional inspection by a plumber.
Based on the findings, the clause gives homebuyers the option to back out and have their earnest money deposit refunded, renegotiate the asking price, or request upgrades or repairs.
Related Reading: The Home Closing Process: What to Expect
How to Verify and Find a Certified Home Inspector
A certified home inspector has spent the time required to meet their state’s certification standards. The benefit of using a licensed home inspector is that they follow set standards and adhere to a code of ethics to ensure the inspection is thorough, objective, and honest.
However, not all states require home inspectors to carry a license or be certified. You might be surprised to know that home inspectors can operate without a license in California, Colorado, Georgia, Idaho, Iowa, Kansas, Maine, Michigan, Minnesota, Missouri, Nebraska, Wyoming, Utah, and Hawaii.
Being a member of a professional organization demonstrates the inspector’s willingness to comply with set standards, including adherence to a code of ethics. In addition, new applicants are subject to background checks and are given access to professional development and further training.
The two key professional organizations inspectors can join are:
- International Association of Certified Home Inspectors (InterNACHI)
- American Society of Home Inspectors (ASHI)
These are both well-respected organizations. In most cases, you can expect to pay from $300 to $500 for a home inspection from an inspector with a membership with one of the above mentioned organizations.
What Happens during a Home Inspection?
Here are the six key aspects of a home inspection you need to be aware of to make the most of the process.
- Buyers should attend the inspection to thoroughly investigate and ask questions about the house they are buying.
- Depending on the size of the house, a home inspection can take longer than the typical two to four hours.
- After examining the foundation, structural elements, roof, HVAC, plumbing, and electrical systems, among other internal and external aspects of the house, a home inspector will prepare a written report outlining the findings.
- It typically takes a few days to send the written report following a home inspection.
- The number of issues in your report shouldn’t worry you; a lot will be such minor problems that they won’t impact the property value. Therefore, pay attention to how serious the issues are and the cost of rectifying them.
Discuss the best course of action with your real estate agent and home inspector when significant issues arise.
A Checklist for Home Inspection
A home inspection has numerous aspects. Below is a checklist of the most important things to look for.
Structural Issues:
- Foundations. The property shows signs of bowing, sinking, and, or sloping.
- Walls, ceilings, and flooring. Uneven surfaces, settling, bulges, water damage, mold, and, or cracks in the exterior and, or interior walls.
- Siding or wall cladding. Signs of water damage, rotting wood or termites, buckling or cracking.
- Roof and chimney. Broken or missing shingles, and/or a sloping or uneven roof or damaged chimney.
- Windows and doors. Leaning or sagging doors or windows that are difficult to open or close.
- Basement. Water stains, cracking, or sagging floor or walls, the sump pump does not work properly.
- Fireplaces. Not functioning, cracks and or crumbling masonry.
- Septic tank. Leaking and, or visible damage from tree or plant roots.
Internal Systems:
- Plumbing and electrical. Pipes and wires that show signs of corrosion or water damage.
- Heating or air conditioning. Open seams on flues and/or signs of rust.
How to Prepare for a Home Inspection If You Are Selling Your Property
As a seller, you should always take time to prepare your house for a home inspection. By choosing to rectify small issues that are affordable, easy, and fast to fix, you can significantly decrease the number of issues discovered in a report. This can improve the overall impression of your home and increase the likelihood of a smooth closing.
Below are a few things you should do if you are the seller before a home inspection.
- Place keys and labels in convenient locations for the inspector.
- To help the inspector assess the heating system and other equipment, check that the pilot lights on the heating systems are working, particularly on warmer days when the heating may not be on.
- Make sure your furnace, air conditioner, water heater, and any other items that require inspection are easily accessible. Check that your basement and/or attack space are clear of obstructions, such as furniture or boxes, and accessible via the stairs.
- Check the inspector has access to your crawl space, drainage access points, and septic tank.
- If the utilities have been turned off and the house is unoccupied, reconnect them.
Related Reading: Tips on Preparing Your Home for Sale in Today’s Market
Home Inspection Take Away
Knowing what to look for in a home inspection is essential to ensuring you don’t purchase a property that requires extensive repairs or has future issues that could be costly to resolve. Although your real estate agent will often be able to recommend a home inspector, it’s important to remember that the choice is yours.
In addition to being certified, you want to find a home inspector you can communicate with in a way that works for you. Sending an email with questions is a good way to find out if a home inspector is responsive and will support you throughout the process.
At DSLD Mortgage, we will support you with customized advice to make the home-buying process as easy as possible. Our goal is to ensure you purchase the house of your dreams. You can secure your dream house with better terms and competitive mortgage rates — simply choose a local Loan Officer or arrange a free consultation with DSLD Mortgage. Pre-qualifying for a home loan is typically completed in less than 24 hours, putting you one step closer to owning the house of your dreams.
Article Sources:
- National Association of Realtors “Home Inspections”
- Investopedia “Home Appraisal: What it is, How it Works, FAQ” Updated June 14, 2023
- Investopedia “Contingency Clauses in Home Purchase Contracts” Updated April 06, 2023
- Consumer Reports “How to Choose a Home Inspector” Updated March 04, 2020
