The Importance of Having a Home Inspection Before Buying

Home inspections are not always mandatory, but they are always an excellent idea. Buying a home is a major financial decision. The last thing you want is to buy into a money pit. By gaining a clear picture of the home’s structural condition, you can minimize risks and make a fully informed decision before purchasing. Still, some homebuyers debate skipping the inspection. Don’t! Learn just why this step is a necessity, even when a lender does not say so.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

What Is a Home Inspection?

A home inspection is a professional, objective evaluation of the home and property, revealing any problems with its integrity. It is not a home appraisal, which considers how the condition impacts value. 

A professional property inspection can reveal whether any areas of the lot or building need repairs that impact structural safety or major systems. The inspection should always be performed by a licensed professional with extensive experience in residential real estate. A home inspection license is required in some states.

Upon being called to the property, the inspector will work through their inspection checklist, carefully looking at the:

• Foundation
• Roof
• Plumbing
• Electrical
• Appliances

Is a Home Inspection Necessary?

An inspection can take up extra time in the home-buying process and is an additional fee outside of closing costs. Homebuyers can work with a real estate agent to vet the property before submitting a bid. Real estate agents will point out any potential problem areas they notice, helping buyers understand their risk in buying that property.

While real estate agents walk through many homes, they are not professional inspectors. Nor do they usually do things like get on the roof or squeeze into a crawl space. Even with their help, the potential buyer can only make an educated guess about the integrity of the property. You may see indications of termite damage or water stains, but is it current damage? The only way is to have assumptions confirmed (or refuted) is with an experienced inspector.

That’s why adding an inspection contingency clause is a crucial step to protect your home purchase and earnest money deposit. You add this to a purchase contract to ensure there are no major issues with the home. This safety net can save you from potential financial burdens. Think about it: Do you want to spend thousands repairing a cracked foundation after you’ve already paid thousands to buy the home?

The homebuyer should plan to attend the inspection to gain insights into the property they want to buy. Some home inspectors ask the homebuyer to come towards the end of their inspection and will walk through the property with you to point out significant findings. That’s the time to ask questions. Attending improves the prospective buyer’s understanding of the property’s condition and whether they want to proceed with the home purchase.

Regardless of whether the buyer attends, home inspection services include receiving a detailed inspection report afterward. The report outlines all necessary repairs for building and occupant safety and ensures the property passes inspection.

Reasons to Have a Home Inspected Before Buying

Problems can lie under the surface, costing the future homeowner a lot of money to fix and potentially devaluing the property. Furthermore, the home could be unsafe if its systems are not up to code.

Common problems revealed by an inspection include:

• Hazardous mold growth
• Faulty wiring
• Leaking in the basement
• Water damage
• Drainage problems
• Broken or missing shingles
• Cracks in the foundation
• Defective heating components

Not every crack in a wall or water stain is a cause for concern. Licensed home inspectors know the difference between a major defect and a minor issue. Without a trained inspector’s assistance, issues can go unnoticed until after closing, leaving the homeowner and lender with a poor investment.

For this reason, mortgage lenders or insurance companies sometimes require a property inspection by a qualified professional before allowing buyers to close on the property. If the initial inspection reveals any issues, they may allow the buyer to negotiate to rectify the problems or to adjust the sale price to reflect the condition. Depending on the issues, the property may need another inspection to verify all is up to code and the property meets the local standards.

Additionally, should you choose to end the purchase contract because of structural issues or other expensive repairs found during the inspection period, the buyer can get their earnest money deposit back. This should not be used for minor defects expected with the wear and tear of the property, like hairline settling cracks or chipped tiles.

Who to Call for an Inspection of the Property

Homebuyers can only order an inspection on the property after submitting a bid and having the owner accept it. At that point, they can call their preferred home inspector to inspect it.

The homebuyer is tasked with finding and hiring their home inspection professional. Real estate agents can provide a list of service providers and an estimated home inspection price.

The actual inspection appointment will last for several hours depending on the size of the home and its home systems. Pricing may also depend on the home size and if you pay for additional inspections.

What Home Inspectors Don’t Do

In the inspection findings, the inspector may note areas for further evaluation by a licensed professional. A standard inspection will visually examine and test the components, but it does not diagnose programs or give an opinion on certain aspects of the home. Some components may need a specialist inspection.

A home inspector won’t:

• Verify every aspect of the home is up to code
• Report minor cosmetic defects
• Move the owner’s existing furniture or personal items
• Test for environmental hazards like lead, mold, and radon
• Evaluate shutdown systems, like running a furnace that has been shut off for summer
• Give estimates for repairs
• Check for pests, although they may note if signs of an active infestation are obvious and require follow-up
• Check specialty systems like solar panels and water softeners

Why The Independent Home Inspection

Home inspections are an integral part of the process, whether required by the lender or not. Although skipping the additional cost might be faster or less expensive, it is unwise. You have no idea if things are in good working order when you buy an uninspected house. A home inspection provides many benefits for your peace of mind and your family’s safety. The cost is worth it when viewed in this way.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

FAQs

Can I waive the home inspection contingency?

Sometimes, in competitive real estate markets, home buyers want to waive the inspection contingency clause to make their contract more attractive. You can certainly buy a home “as-is,” but you do so not knowing if all major systems are in working order or if there are safety issues. You may be able to waive the “right to repair” based on the professional home inspection but still keep your right to walk away should potential issues arise. Each state has different real estate laws, so ask your real estate professional about the state’s diligence contingency options.

How long is the inspection contingency period?

Again, local real estate regulations may play a role in how long your due diligence period lasts. Typically, it is between 2 and 3 weeks, giving buyers a chance to schedule the inspection and review the report. It should also give time for any specialized inspections, like a chimney, pool, pest, or foundation inspection. The buyer and seller must arrive at an agreed-upon time frame for the inspection period in the purchase contract.

What are some additional inspections?

Sometimes, your professional home inspector will suggest having a specialized contractor review a potential issue in a home. A standard home inspection may also not look at specific aspects of the home. Among the additional professional inspections to consider ordering:

• Radon testing
• Pest inspection
• Air conditioning systems
• Swimming pools
• Mold inspections
• Septic inspection

What can I do if the inspection report highlights issues but I want the home?

As a home buyer, you have multiple levers to pull. However, what you can do will be limited by your real estate contract. If you do have an inspection contingency clause, you can ask for things like:

• A sales price reduction equal to the cost of repairs
• The owner to make minor repairs before closing
• A credit back to cover some of the repairs at the closing

Any changes will be outlined in an inspection contingency addendum and must be negotiated between the buyer and seller. Price adjustments are a normal part of a real estate transaction.

What repairs can I request the buyer make?

The home inspection is focused on the structural integrity and safety of the property. Any repair requests should relate to the health and safety of the property’s use. For example, it’s reasonable to ask for a leaky pipe to be fixed as the water damage could lead to unsafe mildew and mold growth or costly repairs. However, repainting a wall with a different color is considered cosmetic. If you’re not sure, ask your real estate agent what would be a reasonable repair request.

Should I get a pre-listing home inspection?

Ultimately, that decision is up to you. A pre-listing home inspection may be smart if you’ve owned the home for a long time, you’ve inherited a home that may be in disrepair, or if you want to get the most for your purchase price. The inspection findings can reveal what potential repairs to make so the home is in a safe condition and more attractive to buyers. 

Updated August 2024