Home Inspections
The larger and more complex your financial transaction, the more important it is for you to be an informed consumer. For most people, the purchase or sale of a home is the biggest and most involved business deal of their lifetime. So no matter which side of the transaction you’re on, it makes good sense to be as informed as possible. That includes knowing as much as you can about the condition of the property so that you can make wise and prudent decisions throughout the entire process.
Now, how do you maximize your knowledge about the property’s condition? That’s where a professional home inspection can help.
A professional home inspection is a complete physical examination of property from top to bottom by an independent third party. The inspection covers components that are visible and accessible. This includes structural elements such as foundation, roof, chimneys, walls, windows, doors, insulation, basement, crawlspaces, and attic.
Systems like heating, cooling, plumbing and electrical are also inspected as well as mechanical components such as appliances. Inspectors also look for evidence of wood-destroying insects such as termites. Overall, an inspector identifies potential health and safety concerns, both positive and negative conditions of the property and any conditions that might warrant further specialized inspection.
Inspection results are delivered in the form a written report. Report formats vary and can range from a simple checklist to full narrative or anywhere in between. Preferably you should receive a comprehensive report, with annotated photos, that details findings. It should also include a summary that highlights any items of major concern. When reviewing the inspection report, remember that it is a snapshot in time. This report does not provide a warranty or guarantee for the future. It only reflects property condition and operation of systems on the day the inspection was performed, not any time beyond that.
Requiring home inspections is pretty much standard practice today for homebuyers.
The requirement is usually in
the form of a contingency clause
in the purchase contract that
specifies what happens based on
the findings from a home
inspection. Those findings
provide buyers with the
information needed to make
effective decisions about their
next actions in their
transaction. Armed with
knowledge of present property
condition, buyers can better
evaluate price, determine what
conditions to accept or
negotiate remedies for, and make
judicious decisions on if/how to
move forward with the purchase.
Inspections are not just for buyers though. If you are a seller, contracting for a pre-sale inspection can be beneficial too. You get advance, objective information that helps you set a fair price and address any issues that might delay your sale or even result in the transaction falling through. You get the option to make those repairs before prospective buyers see your home. If you elect not to make repairs, you are able to more accurately disclose any adverse conditions. All in all, you should find yourself in a better position for fewer contingencies and concessions and a quicker sale. Keep in mind that even when you have a pre-sale inspection, buyers may still request a professional inspection of their own.
Typically when buyers request the inspection, they are responsible for covering the costs.
Sellers who have a pre-sale
inspection done would pay the
inspector’s fees. Either
way, how much can you expect a
professional home inspection to
cost? Inspection fees
vary by geographic location and
size and feature of the
property. Typically, you
might expect to pay $200 to $500
for a professional home
inspection. Prices vary however,
and it is a good idea to check
and compare costs in your area.
In addition to cost, other obvious questions are: What do you look for when hiring an inspector and where do you look? Reputation, experience, training, certifications and professional affiliations are important considerations in making your selection for an inspector. Friends or real estate professionals may refer you to qualified inspectors. Other sources are your local Yellow Pages directory and online directories of professional organizations such as the American Society of Home Inspectors (ASHI) or local professional associations for home inspectors.
No matter which party you are in a real estate transaction, contracting for a professional home inspection is a smart move. With it, you can approach and complete your real estate transaction with the confidence that comes from knowing the good, bad and ugly about current property condition.
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