Home Inspection 101: Everything You Need to Know Before Buying

Introduction

Buying a home is one of the most important investments many of us make in our lifetime. It’s not just about finding a place to live; It’s about securing our future, building equality and creating a place where memories are made. However, amidst the excitement of house hunting, it is important not to overlook the importance of a home inspection.

Welcome to “Home Inspection 101: Everything You Need to Know Before You Buy.” In this comprehensive guide, we’ll highlight the important aspects of home inspections and why they are an essential part of the home buying process. Whether you’re a first-time home buyer or an experienced real estate investor, understanding the ins and outs of a home inspection can save you potential headaches.

Importance of Home Inspection

Home inspection plays an important role in the home buying process, acting as a vital check point before finalizing one of the most important investments of your life. Here’s why they’re indispensable:

Identifying Potential Issues: A home inspection brings to light any hidden problems or defects within the property. From structural issues to electrical or plumbing problems, these inspections uncover things that might not be apparent during a casual walkthrough. This knowledge enables buyers to make informed decisions about whether to proceed with a purchase or negotiate repairs with the seller.

Protecting Your Investment: Buying a home is a significant financial commitment. A thorough inspection helps protect your investment by making sure you are aware of any needed repairs or maintenance before finalizing the deal. This can prevent unexpected expenses in the future and give you peace of mind about the condition of the property.

Negotiating Power: Armed with the findings of the home inspection, buyers gain leverage in negotiations with the seller. If significant issues are discovered, the buyer may request repairs, credits, or a reduction in the sales price to compensate for the required repairs. Without a comprehensive inspection, buyers may find themselves responsible for costly repairs soon after moving in.

Maintenance Needs: Even if a property appears to be in good condition, a professional inspection provides valuable insight into its maintenance needs. Buyers receive a detailed report outlining the current condition of the home and recommendations for future maintenance. This information helps buyers plan ongoing maintenance and budget accordingly.

Ensuring Safety and Compliance: Home inspection not only assesses the structural integrity of the property but also its safety features and compliance with building codes. Detecting hazards such as mold, radon, or faulty wiring ensures that buyers can address these issues immediately, creating a safer living environment for them and their family.

Peace of Mind: Ultimately, a home inspection provides buyers peace of mind during a stressful and complicated process. By thoroughly appraising the property, buyers can proceed with confidence, knowing that they have a clear understanding of its condition and any potential risks involved.

How Home Inspection Can Be A Money Saver

The complete home inspection is an important step in the home buying process as it provides buyers with a comprehensive assessment of the condition of the property. This inspection covers various aspects of the home, including its structural integrity, electrical and plumbing systems, roofing, HVAC (heating, ventilation and air conditioning) systems, insulation, and more which can be a money saver .

By hiring a qualified and experienced home inspector, buyers can uncover hidden issues and potential problems that may not be visible to the untrained eye during a casual walk-through. These issues can range from minor repairs to significant structural defects. Identifying these issues early can save buyers from costly surprises in the future.

For example, a home inspection may reveal problems such as water damage, mold infestation, faulty wiring, plumbing leaks, or a damaged foundation. Addressing these issues before finalizing the purchase allows buyers to negotiate repairs or adjustments on the sales price with the seller. In some cases, the buyer may choose to walk away from the deal if the inspection reveals extensive problems that they are unprepared to deal with.

Additionally, a thorough home inspection provides buyers with peace of mind in knowing the exact condition of the property they are considering purchasing. This empowers them to make informed decisions and prioritize any repairs or upgrades needed after purchase. By investing in a comprehensive inspection beforehand, buyers can save themselves potentially costly repairs and renovations, ultimately protecting their investment and ensuring a seamless homeowner experience.

Home Inspector & Home Inspection Checklist

Who is Qualified Home Inspector

Before choosing a home inspector, a few things to consider are:

• Their licensing and certifications.
• The types of inspections they offer.
• Their experience.
• Inspection report format.
• Previous client testimonials.

When Should You Get a Home Inspection?

Here are some key points to consider regarding the timing of your home inspection:

• Before Finalizing the Purchase Agreement: It’s wise to schedule a home inspection before finalizing the purchase agreement. This way, you can factor in any repair costs or renegotiate the terms based on the inspection findings.
• During the Option Period: In many real estate transactions, buyers are granted an option period, typically a few days after the offer is accepted, during which they can conduct inspections and back out of the deal for any reason. Utilize this time to schedule a comprehensive home inspection.
• As Early as Possible: It’s advisable to schedule the home inspection as early as you can in the buying process. This allows sufficient time to address any issues that may arise without delaying the closing date.
• Competitive Markets: In competitive real estate markets where properties receive multiple offers, some buyers may be tempted to skip the home inspection to make their offer more attractive. However, this can be risky. Even in a competitive market, it’s essential to protect your investment by conducting a thorough inspection.
• New Construction Homes: Even if you’re purchasing a newly constructed home, getting a home inspection is still crucial. New builds can have defects or construction issues that may not be immediately apparent.
• Before Making a Final Decision: Ultimately, the decision of when to get a home inspection rests with the buyer. However, it’s generally recommended to schedule the inspection as soon as possible to allow ample time for any necessary negotiations or repairs.

Home Inspection Checklist

Inspectors vary in how much they know, how well they work, and how thorough they are. But a good one will look at specific parts of your home and then write a report about what they found. Typically, they will spend about two to three hours doing this. It’s a good idea for you to be there during the inspection so you can see what they found and ask questions if necessary.

It’s easier to understand any problems if you see them yourself rather than just looking at the pictures later.

The inspector will:

Say whether each issue is a security issue, a major issue, or a minor issue.

Tell you what needs to be changed, what can be fixed and what needs regular attention.

A great inspector will also tell you about things you need to do to keep your home in good condition, especially if you are a first-time home buyer.

Although they can’t check everything, here’s a checklist of what they typically look at:

Exterior Home Inspection

Grounds:

• Good drainage, including downspouts, away from the house with no standing water.
• No evidence of leaks from septic tank.
• Landscaping, driveway and walkways in good condition with no significant cracks.
• Trees in good condition without overhanging or touching the roof.
• Detached garage, shed, fence and deck show no rotted wood or evidence of termites.
• Deck and stair railings are secure.

Roof:

• Shingles are not missing or damaged and show no curling or cupping.
• No evidence of excess roofing cement or patches.
• Flashing around roof penetrations is present and in good condition.
• No decay or staining on soffits and fascia; fascia board lines appear straight and level.
• Vents for eaves are clean and not obstructed.
• Gutters show no decay, staining or rust and are securely attached with downspouts.
• Chimneys are straight and show no evidence of damage; flashing and cap are in good condition.

Exterior structure:

• Visible foundation appears straight and plumb, in good condition with no significant cracks.
• Exterior walls appear straight with no sagging or bowing.
• Window and door frames appear square.
• No wood-to-ground contact.
• Siding has no cracks, decay or curling.
• Bricks show no damage or cracks in joints.
• Stucco shows no large cracks.
• Aluminum and vinyl siding is not loose and shows no dents or damage.
• Paint is not flaking or blistered.
• Exterior walls show no staining.

Doors and windows:

• Doors have weather-stripping and latch properly.
• Thermal glass or storm windows are installed.
• No condensation inside double-paned windows.
• Frames and trim are secure with no cracks or decay.
• Joints are caulked.
• Drip caps are installed.

Interior Home Inspection

Basement:

• No evidence of moisture.
• No evidence of water damage to above floor.
• No staining or major cracks in exposed foundation.
• Visible floor joists show no damage, decay or staining and appear straight.
• Sump pump operates properly.

Crawl space:

• Adequate ventilation to exterior.
• No evidence of damage from moisture or insects.
• Water supply and waste pipes are insulated.
• Insulation between crawl space and heated areas.

Attic:

• No evidence in attic of staining from roof.
• Structure shows no damage or decay.
• Adequate ventilation through soffit vents and end louvers; mechanical ventilation is operational.
• Plumbing, exhaust and appliance vents extend through roof.
• Insulation is sufficient and properly installed.
• Electrical splices are contained.

Electrical:

• Service panel has adequate capacity with cables attached properly.
• No knob-and-tube wiring.
• No aluminum cable for branch circuits.
• Cables are secured.
• Visible wiring is in good condition.
• No exposed electrical splices.

Plumbing:

• Visible pipes show no damage or evidence of leaks.
• Drain pipes slope toward main waste outlet to sewer or septic system.
• Water heater is appropriate size for home and shows no signs of rust.
• Manufacture date of water heater is within length of expected use.
• Water pressure at fixtures in home falls within accepted range.
• Hot water temperature at fixtures does not exceed 125-degrees Fahrenheit.
• Water from well is tested.
• Water pump does not short-cycle.

Heating and Cooling:

• No gas odor.
• Air conditioning and heating to operate well with good air flow throughout home.
• Air filters clean.
• Flues have no open seams and slope up to chimney connection.
• Ductwork is in good condition.
• No rust around cooling unit.

Bathrooms:

• Working exhaust fan vents to exterior.
• Adequate water flow and pressure for hot and cold water at all fixtures.
• Tub, shower and sink drain smoothly.
• Visible plumbing under sink is in good condition and cabinet floor shows no water damage.
• Toilets flush and fill properly.
• Toilet is stable, with no rocking or stains at base.
• Caulking inside and outside of tub and shower is in good condition.
• Tiles are secure.
• Ground fault circuit interrupter (GFCI) receptacles for all electrical outlets located within 6-feet of sinks.
• No evidence of leaking around base of tub or shower.

Kitchen:

• Working exhaust fan vents to outside.
• Ground fault circuit interrupter (GFCI) receptacles for all electrical outlets located within 6 feet of sinks.
• Dishwasher drains properly and shows no evidence of leaks; door and baskets operate properly.
• Plumbing under sink is in good condition and cabinet shows no stains or decay from past leaks.
• Garbage disposal is operational and shows no rust or deterioration.
• Water flow to sink is adequate and drains properly.
• Built-in appliances operate properly.
• Cabinets are in good condition; doors and drawers operate properly.

Interior rooms:

• Floors, walls and ceilings appear straight, plumb and level; no stains.
• Doors open easily and latch properly when closed; no broken hardware.
• Flooring materials in good condition.
• No significant cracks in walls or ceilings.
• Windows and doors operate easily and latch properly, no broken glass, no sashes painted shut.
• Paint, wall covering, paneling in good condition.
• Wood trim installed well and in good condition.
• Lights and switches operate properly.
• Adequate number of 3-pronged electrical outlets in each room.
• Electrical outlets test properly with spot checks.
• Heating and air conditioning vents in all rooms.
• Fireplace has no cracking or damaged masonry and shows no staining, which could indicate back-drafting; flue has been cleaned and is lined; damper works properly.

Miscellaneous:

• Smoke detectors and carbon monoxide detectors are in working order and located in required and recommended areas.
• Stairway treads and risers are solid.
• Stair handrails located in required areas are in good condition.
• Automatic garage door operates properly and stops for obstructions.

How Long Does A Home Inspection Take

A standard home inspection usually spans about 3-4 hours. Throughout this duration, the home inspector conducts a thorough walkthrough of the property, examining various critical aspects. These include plumbing, wiring, insulation, foundation, roof, and other essential components.

The Importance of Attending the Inspection

Attending the home inspection is not just a formality; it’s a critical step in the home buying process that can provide invaluable insights and peace of mind. Here’s why it’s so important:

• Firsthand Understanding: While it’s tempting to leave the inspection to the professionals, being present allows you to see firsthand any issues or concerns that arise. You can ask questions, seek clarification, and gain a deeper understanding of the condition of the property.
• Identification of Red Flags: Home inspectors are trained to identify potential problems, but they aren’t infallible. By attending the inspection, you can spot issues that may have been overlooked or ask about areas of concern. This proactive approach can help you catch any red flags early on, potentially saving you from costly surprises down the road.
• Opportunity for Negotiation: If the inspection uncovers significant issues, being present gives you the opportunity to discuss potential remedies with the seller. You can negotiate repairs, concessions, or a reduction in the asking price based on the findings. Without attending the inspection, you may miss out on this chance to advocate for your best interests.
• Education and Maintenance Tips: Home inspectors often provide valuable insights into the maintenance needs of the property. By attending the inspection, you can learn about recommended maintenance tasks and how to address any issues that may arise in the future. This knowledge empowers you to be a proactive and responsible homeowner.
• Peace of Mind: Buying a home is a significant investment, both financially and emotionally. Attending the inspection can provide peace of mind by confirming that the property meets your expectations and is a sound investment. It’s an opportunity to ensure that you’re making an informed decision and moving forward with confidence.

Home Inspection Report

Thorough home inspection of the property helps buyers make an informed decision by highlighting any potential issues or concerns related to the home. However, understanding the home inspection report can sometimes be overwhelming for first-time buyers. Let’s find out what you need to know about interpreting this essential document.

Cover Page: The cover page typically includes basic information such as the property address, date of inspection, and the name of the inspector or inspection company.

Summary: The Summary section provides a brief overview of the most important findings from the inspection. This highlights any major issues that may need immediate attention, such as structural defects or safety hazards.

Detailed Findings: The bulk of the report contains the detailed findings of the inspection. This section can cover various aspects of the home, including the roof, foundation, plumbing, electrical system, HVAC (heating, ventilation and air conditioning) and more.

Description and Recommendations: Each conclusion is usually accompanied by a description of the problem and, more importantly, recommendations to address it. These recommendations can range from simple repairs to more extensive renovation or replacement.

Photographs: Many inspection reports include photographs to provide visual evidence of the findings. These images can be invaluable in understanding the extent of any problems identified during inspection.

Safety Concerns: Inspectors give priority to safety concerns in their reports. Issues such as mold, asbestos, lead paint, faulty wiring or structural instability are flagged because they pose potential risks to occupants.

Maintenance Suggestions: In addition to identifying current issues, the report may also include recommendations for ongoing maintenance to keep the home in good condition. This may include tasks such as cleaning gutters, servicing the HVAC system, or replacing worn out components.

Estimates and Timeframes: Although inspectors do not typically provide cost estimates for repairs, they can provide estimated timelines for resolution of various issues. This can help buyers prioritize repairs and plan their budget accordingly.

Consultation: Buyers are encouraged to carefully review the inspection report and consult with their real estate agent and possibly contractors or experts to better understand the implications of the findings and associated costs.

Negotiation: Armed with the information from the inspection report, the buyer can choose to negotiate with the seller to resolve any significant issues found during the inspection. This may include a request for repairs, a credit for closing costs, or a reduction in the sales price.

12 Common Home Inspection Fails

These are the 12 most common things that fail a home inspection. Some may surprise you:

1. Foundation Problems

Foundation issues can affect a home’s value and safety. At best, they can allow moisture and pests into the home and cause floors to warp. At worst, foundation problems can cause walls to collapse and put the stability of your home at risk. Either way, foundation repair can be extremely expensive, costing thousands of dollars, which is one of the reasons they can affect a home’s value.

What to look for:

• Cracks on the exterior walls of the home
• Leaning or tilting chimney
• Sagging or uneven floors
• Cabinets separating from the wall
• Windows and doors that don’t open or shut properly
• Cracks in interior walls and ceilings
• Bowing walls

2. Roofing Issues

Along with the foundation, the roof is a major part of the home and is one of the costlier repairs you’ll have to make. It also protects homeowners and the interior of the home from the elements. Inspectors often check to see if the roofing materials are in good shape, need repair or have water damage.

What to look for:

• Damage to the shingles
• Missing shingles
• Missing flashing
• Signs of water damage on the roof and in the attic
• Decay
• Signs of sagging or weak spots

3. Plumbing Or Pipe Problems

Another major part of the home – and one that is expensive to repair – is your plumbing system. Pipe problems can cause water damage, cause your bill to increase and ruin your stuff. You’ll need to inspect your pipes for signs of trouble. Of course, some pipes reside behind the walls, which makes it harder to detect leaks, so you’ll have to get creative.

What to look for:

• Visible leaks coming from exposed pipes
• Signs of water, including stains and mildew
• Sounds of running water or dripping
• Low water pressure
• A rise in your water bills, but not in your usage

4. Electrical Issues

Electrical issues can be a safety hazard and cause house fires and, thus, are taken seriously. Faulty wiring, outdated systems and multiple wires using a single breaker are just a few electrical-related things that fail a home inspection.

What to look for:

• Faulty, damaged or exposed wiring
• Outdated or damaged electrical panel
• Overloaded breakers
• Switches or outlets that don’t work

5. Building Code Violations

It may not feel like it, but building codes are typically in place to benefit current and future homeowners, and they’ll vary from one location to the next. If something in your home violates your city’s building codes, or lacks the necessary permit, it can be a major home inspection issue and safety concern. Not all violations will fail the inspection. In fact, many houses will have several violations and pass just fine. It’s best to review your city’s specific building codes and talk to your real estate agent.

What to look for:

• Permits for any additions or other projects done on the home
• Violations based on your specific city’s codes and ordinances

6. HVAC Problems

Certain HVAC issues can fail a home inspection due to a matter of safety. Your inspector will want to know your system is working properly, has proper ventilation and isn’t leaking carbon monoxide, refrigerant or any other harmful toxins.

What to look for:

• Refrigerant leaks
• Cracks in ductwork
• Loose electrical connections
• Squeaks, noises or bangs coming from your unit
• The smell of gas
• The presence of carbon monoxide (using a detector)

7. Mold

The discovery of mold can cause you to fail a home inspection because it often indicates a bigger problem – water. It also spreads and can be a health hazard for those that live in the house.

What to look for:

• Standing water
• Musty smells
• Actual, physical mold

8. Termites And Other Pests

There’s a reason they call them pests. Termites, carpenter ants, rodents and other pests can be another reason a home inspection fails. Pests can make your living environment unsafe and also threaten the structural integrity of a home. Things like termite damage and signs of other pests can deter home buyers, so you’ll want to watch for these signs of infestations.

What to look for:

• Rodent droppings
• Scratching and rustling noises
• Nest materials
• Holes or gnaw marks in your wood
• Swarming
• Buckling wood
• Swollen floors or ceilings
• Visible tunnels in your wood
• Mold or mildew smells

9. Windows And Doors Issues

Warped or broken windows and doors can hurt your home inspection because they are a safety and security issue. They can also be a sign of more serious issues, like foundation problems.

What to look for:

• Difficulty opening or shutting doors and windows
• Broken or malfunctioning locks
• Large, uneven spacing at top of closed doors
• Broken windows
• Windows letting in outside air or water

10. Toxic Materials

Old homes were often built with materials that are now determined to be toxic, including asbestos and lead paint. Other times, toxic materials like carbon monoxide and radon can be leaked into the home through faulty appliances or cracks in the foundation. Toxic materials are harmful to those residing in the home and, often, must be removed before the home can pass inspection.

What to look for:

• Presence of radon or carbon monoxide (using a test kit or detector)
• Certain types of tiles, textured paints and insulation (asbestos in certain objects is not considered dangerous if it’s not disturbed or damaged)

11. Structural Issues

There are other structural issues besides the foundation, and they can be just as costly to repair. Structural issues are a safety concern and a big turnoff to potential home buyers. If you notice structural issues in your home or think you may have some, it may be a good idea to consult a structural engineer.

What to look for:

• Sagging floors, rafters or roof
• Sloping floor
• Cracks in exterior brick or mortar
• Wood rot
• Cracks on walls or around windows and door frames
• Damp subfloors

12. Drainage Problems

Water can wreak havoc on a home. If your home has drainage problems and you’re not diverting water from the home, you’re inviting major problems.

What to look for:

• Overflowing gutters
• Flooding in your yard
• Water pooling near the home
• Water leaking into the basement
• Musty smells
• Mold and mildew
• Efflorescence on your basement walls

Benefits of Home Inspection

When negotiating repairs or credit based on inspection findings, it is essential to approach the process strategically to ensure a fair outcome for both parties involved. Here are some effective strategies to consider:

Prioritize needed Repairs: Identify critical issues uncovered during the inspection that directly impact the safety, structural integrity, or functionality of the home. Focus on negotiating repairs on these items first, as these are non-negotiable for the buyer’s peace of mind and future property value.

Estimated Repair Cost: Get estimates from reputable contractors or professionals for necessary repairs. Having an accurate cost estimate strengthens your negotiating position by providing solid evidence of the expenses involved. This also helps ensure that the credit or repairs negotiated are fair and reasonable.

Request a Credit for Minor Repairs: For less serious issues or cosmetic defects revealed in the inspection, consider negotiating a credit instead of a repair. This approach allows the seller to offer compensation to the buyer to address repairs after closing. Credit may be a more practical solution for both parties, especially if the seller does not want to do the repair work directly.

Be Reasonable & Flexible: Negotiate with a reasonable and cooperative mindset. Understand that the seller may not agree to cover the full cost of all repairs or offer credit for every small problem. Be willing to compromise and prioritize the most important repairs while remaining open to alternative solutions, such as splitting the cost of repairs or adjusting the purchase price accordingly.

Take Advantage of Inspection Contingencies: If the purchase agreement includes inspection contingencies, use them to your advantage during negotiations. Clearly outline the inspection findings and proposed repairs or credits as conditions of moving forward with the purchase. This provides the buyer with the advantage of requesting necessary adjustments to the terms of sale based on the inspection results.

Seek Professional Guidance: Consider consulting a real estate agent or attorney experienced in negotiating strategies for a home inspection. Their expertise can provide valuable insight and guidance throughout the negotiation process, ensuring that your interests are protected and your objectives are communicated effectively.

Maintain Open Communication: Effective communication is the key to successful negotiations. Maintain open and transparent communication with the vendor or their representative, clearly stating your concerns, priorities, and proposed solutions. A collaborative approach can yield mutually beneficial results and help foster a positive relationship between buyer and seller.

What is The Home Inspection Cost

When investing in a professional home inspection, be prepared to allocate between $300 to $450 or more. Although the average national cost in 2021 was between $280 to $400, investing in an inspection report can potentially save you thousands in repair expenses.

Despite the additional fees that may be incurred during the home buying process, hiring an inspector is strongly recommended. Any reputable real estate agent will stress the importance of a thorough home inspection, especially for older properties. While your untrained eye may find the home satisfactory, a professional inspector may uncover hidden problems.

A comprehensive home inspection assures that the property you are purchasing is in good condition, instilling confidence in your investment.

Home Inspection Cost Calculator

• Scope of Inspection:
  • The size and complexity of the property play a significant role in determining the cost of inspection. Larger homes or those with unique features may require more time and expertise, thus increasing the overall cost.
• Location:
  • Home inspection costs can vary based on geographic location due to differences in market rates and local regulations. Urban areas typically have higher inspection fees compared to rural areas.
• Additional Services:
  • Some home inspectors offer additional services such as radon testing, mold inspection, or termite inspection for an extra fee. These supplementary services can impact the total cost of inspection.
• Inspector’s Experience and Qualifications:
  • Experienced and certified inspectors may charge higher fees for their expertise. However, their thoroughness and professionalism can provide peace of mind and potentially save money in the long run by uncovering hidden issues.

To estimate the cost of a home inspection accurately, consider the following factors:

• Property Details:
  • Size of the property (in square feet)
  • Number of bedrooms and bathrooms
• Location:
  • City or ZIP code of the property
• Additional Services (if needed):
  • Radon testing
  • Mold inspection
  • Termite inspection
• Inspector’s Experience:
  • Years of experience
  • Certifications (if any)

Using this information, you can calculate the approximate cost of a home inspection using the following formula:

Cost=BaseFee+AdditionalServicesFee+LocationAdjustment+ExperienceAdjustment

Where:

• Base Fee: Typically ranges from $300 to $500 for a standard home inspection.
• Additional Services Fee: Add the cost of any extra services requested.
• Location Adjustment: Adjust the base fee based on the location’s average inspection costs (can be obtained from local sources or online).
• Experience Adjustment: Experienced inspectors may charge a premium, while newer inspectors may offer lower rates.

Example Calculation:

Let’s say you have a 2,000 square foot home with three bedrooms and two bathrooms located in a suburban area. The base fee for a standard inspection is $400, and you opt for radon testing ($150) and termite inspection ($100). The average inspection cost in your area is $450, and the inspector’s experience warrants a 10% premium.

Cost = $400 (Base Fee) + $150 (Radon Testing) + $100 (Termite Inspection) + $50 (Location Adjustment) + $40 (Experience Adjustment)

Total Cost = $740

Conclusion 

By preferring a professional home inspection, buyers have peace of mind knowing the exact condition of the property they wish to purchase. From structural integrity to potential safety hazards and everything in between, a thorough inspection helps buyers assess the overall health of the home and identify any needed repairs or maintenance.

Furthermore, home inspections empower buyers to negotiate effectively with sellers. Equipped with detailed inspection reports, buyers can request repairs or negotiate for a fair price based on any issues encountered during inspection.