As you move through the home-buying process, one of the most crucial components is the home inspection. This step not only provides peace of mind and protection against unforeseen issues, but also allows you to make an informed decision before you buy. After all, buying a home is one of the most significant purchases of your life, and a thorough inspection provides the assurance needed before proceeding with the purchase.
Whether you’re a first-time homebuyer or simply haven’t bought a new home in a while, here’s everything you need to know about the home inspection process. It’s a crucial step that requires your involvement and understanding.
What is a Home Inspection?
A home inspection evaluates the safety and condition of a property that is getting ready to be sold. A professional inspector will come out to assess the property with a comprehensive walk-through of the home and the land, thoroughly examining many aspects to identify any potential concerns.
During the inspection, they will examine all major and minor systems and structures to ensure everything functions properly and is structurally sound. The property is assessed for damage, safety issues, and anything else that can affect its value.
While you are not required to be onsite during the inspection, it’s encouraged. The inspector will provide a detailed report of their findings; however, being present allows you to ask questions and seek professional guidance on any potential issues.
What Does a Home Inspection Cover?
Your home inspector checks over multiple facets of your home and property, taking thorough notes and pictures. Their findings are compiled in a detailed report, and a copy will be provided to you upon completion. This report gives you a clear picture of the condition of your home and property and identifies anything that needs to be addressed. Here are the categories commonly covered in a home inspection report:
- Code Violations: Informs you of any non-compliance issues with current building codes and safety standards that must be addressed.
- Roof Issues: Includes things like leaks, damage, and structural problems.
- Plumbing: Identifies any issues with leaks, poor drainage, water damage, pipes, and sewage.
- Electrical: Points out any faulty wiring, outdated systems, or poor circuitry. The electrical panel and all outlets will also be examined and tested.
- Air: Inspects your HVAC system, ducts, air conditioner, and furnace.
- Structural: Uncovers if there are any foundation problems, structural defects, or interior or exterior damage to walls and windows.
- Pests: Identifies infestations or damage caused by termites, ants, or other pests.
- Mold: This category tends to go hand in hand with water damage, but your inspection also covers mold testing.
- Fire Safety: Examines and tests smoke detectors and identifies any potential fire hazards.
How Much Does a Home Inspection Cost?
Costs can vary based on several factors, including the property location, size, and type of home. Typically, a home inspection will cost between $200-$500 and is coordinated by your lender, realtor, or closing agent. The costs are usually lumped into your home’s closing costs.
How Long Does a Home Inspection Take?
The inspection itself will only take a few hours to complete. However, if you are in an area with a busy real estate market, it may take a few weeks before an inspector is available to evaluate your property.
Once the inspection is complete, you will typically receive the results within 24-48 hours. Some inspectors may even provide you with a copy of the report onsite once they finish the inspection.
What Happens After the Home Inspection?
Depending upon the specific issues uncovered in the inspection, you may choose to take care of some things yourself before or after moving in, or you can request that the seller take care of it before proceeding with the sale.
But what if the house fails the inspection? Or what if the inspection points out many things that need to be addressed? If the inspection turns up serious issues, potential buyers do have a few different options:
- Negotiate with the seller: You can ask the seller to address specific issues before proceeding with the sale or request that they reduce the selling price to cover the repair costs you must pay. Depending on the problem, the seller may offer to fix the issue or make the repair, or you can request to contract a professional.
- Buy the home “as-is”: You can offer to buy the house in its current condition and request a price decrease in exchange for still purchasing the property. For example, you could ask to take off $10,000 of the previously agreed-upon price. The price adjustment allows you to allocate the savings to address the issues identified in the inspection.
- Cancel the contract: If the inspection uncovers extensive issues that need to be addressed, particularly to the point where you are no longer interested in purchasing the home, you can rescind your offer and cancel the contract. However, if you go this route, you will be out of your earnest money (the initial funds you deposited to demonstrate your intent to buy the home). But it’s important to remember that you have the right to walk away!
Do I Really Need a Home Inspection?
Yes! The purpose of a home inspection is to inform you of any issues with the property and address them. Lenders and insurance companies often require an inspection, or it may be required for certain mortgage loan types.
Even if a home inspection is not necessary, we still recommend that you get an inspection. That way you’ll know exactly what condition your home and property are in to ensure you don’t encounter any surprises down the line.
We’re Here to Help!
Buying a home is a significant financial decision. A thorough inspection helps you protect your purchase by clearly understanding the property’s condition and allowing you to address any issues. If possible, try to be onsite during the inspection so you can ask questions and learn about any problems in greater detail.
If you have any questions about home inspections or want to learn more about the home-buying process, we are ready to help. Please stop by any of our convenient branch locations or call 800-782-4899 to schedule an appointment with our home loan team.
Each individual’s financial situation is unique and readers are encouraged to contact the Credit Union when seeking financial advice on the products and services discussed. This article is for educational purposes only; the authors assume no legal responsibility for the completeness or accuracy of the contents.