A home inspection is a professional review of the property’s condition that can identify issues you may want the seller to address. Inspectors review many aspects of the physical structure, from the foundation to the roof. For most homebuyers, the cost of getting a professional inspection is worth the peace of mind it brings. Let’s review the benefits of a home inspection, what it covers and doesn’t cover, when it’s required, as well as the associated costs. That way, you can determine whether an inspection is worth it for you.
What Is a Home Inspection?
A home inspection is an examination of your property that is completed by a qualified inspector. Inspectors scrutinize the physical structure of the house and provide you with a detailed report on its condition. Home inspections can shed light on a range of potential issues, from cracks in the foundation to dead electric sockets. A home inspection is not a pass or fail test. Instead, it gives you the information you need about the property to make confident decisions during the buying process. A home inspection is not the same as an appraisal, which is a professional estimate of the value of the property. If you’re hiring a home inspector, be sure to check reviews and their qualifications.
Why You Need a Home Inspection
A home is a major investment, perhaps the largest investment you’ll make. You’ll want a detailed understanding of the property’s condition so you can anticipate future repair costs and factor them into your buying decision. A home inspection can alert you to critical issues with the home, such as rotting roof beams or aging HVAC systems, that will need to be addressed. If the home inspection report reveals significant issues with the home, you and the seller can negotiate a solution. For example, you may require the seller to make certain repairs. In a seller’s market, where buyers are competing for homes, you may be tempted to exclude a contingency for a home inspection in your offer. While you may want your offer to be more attractive to sellers, you should also consider the potential financial impacts of forgoing an inspection. Skipping a home inspection leaves you open to costly repairs that you may not know about just by walking through the home. In most cases, it’s in the buyer’s best interest to complete a home inspection, whether you include it as a contingency or not. However, in some situations, you might not need a home inspection. For example, if you’re already aware a home is in poor condition and you’re planning on demolishing it, a home inspection wouldn’t be worth the cost.
What Does a Home Inspection Cover?
Home inspection reports can vary from company to company, but they generally check the same major items and systems. A standard home inspection will typically review the condition of these features:
Heating systemCentral air conditioning system (temperature permitting)Interior plumbing systemElectrical systemRoofAtticVisible insulationWallsCeilingsFloorsWindowsDoorsFoundationBasementStructural components
What Isn’t Always Included
Home inspections aim to cover all aspects of the physical structure of the home, but they’re not necessarily exhaustive. Standard home inspections also don’t include certain outdoor property reviews or tests for some issues in the home that can affect your health. However, many inspectors will offer these as optional add-on services. These services include:
Testing for radon, asbestos, formaldehyde, lead paint, and lead plumbingPool inspectionsSewer scope inspectionsPre-listing inspectionsMold and air testing
How Much Does a Home Inspection Cost?
Generally, the cost of a home inspection will run from $300 to $500. However, the range can vary based on factors such as location and square footage. As the buyer, you’ll be responsible for hiring and paying for the home inspector. Additional services will increase the cost of the home inspection, but by how much will depend on the add-ons you choose. Expect to pay about $25-$200 or more for these services. You’ll usually have to request a quote for the specific costs of these add-ons.
How To Prepare for a Home Inspection and What To Watch For
A home inspector will likely find some faults with the property because no property is perfect. Homes need maintenance, and if the previous homeowner has failed to maintain the home, a home inspection can shed light on where you’ll need to compensate. As the buyer, you can address faults found in the home in one of several ways. First, if a home inspection was included as a contingency in your offer to your seller, you can walk away from the purchase agreement. You can also simply move forward with the contract with the home as-is. If the seller isn’t obligated to repair the home for you, if you’re facing stiff competition from other buyers, or if the issues are minor, you may choose to accept issues rather than risk negotiating.
Learn Which Fixes Are Optional and Which Are Mandatory
Not all damage to a property needs to be repaired. For example, cosmetic damage doesn’t threaten the overall structural soundness of the home and is often accepted by buyers and their lenders. Unless a lender requires certain repairs, the responsibility for the property issues found in a home inspection report can be negotiated by buyers and sellers. Other examples of issues that are often optional include burnt-out lightbulbs, peeling paint, and termite damage. Depending on your loan, some repairs may be mandatory. An FHA loan, for example, has minimum property standards that must be met in order for you to secure funding. Those standards include no damage to the foundation, exterior, and roof and being free of health and safety hazards, among many other requirements.
The Bottom Line
Although a home inspection isn’t always required when purchasing a property, it’s in the buyer’s best interest to have one. A qualified home inspector provides an objective evaluation of the home’s condition with a detailed list of any issues they find. In seller’s markets, you may be tempted to waive this contingency in your offer. But a home inspection can give you a better picture of the condition of the property and reveal hidden costs.
