Home Inspections Avert Future Headaches
Suppose you purchased a home and later discovered, to your dismay, that the stucco exterior concealed a nasty case of dry rot. Or suppose that when you fired up the furnace in the winter, you discovered a cracked heat exchanger leaking gas into your home. The best way to avoid unpleasant surprises like these is to arrange for a home inspection before you buy.
We will include a clause in your purchase agreement that makes your purchase contingent upon satisfactory inspection results. If major problems are found, this clause will allow you to back out of the deal.
Home Inspections Are A Wise Investment
A good home inspection is an objective, top-to-bottom examination of a home and it’s major components and systems. A standard pre-purchase inspection includes a review and evaluation of the home’s major mechanical systems ”electrical, plumbing, heating, and cooling” and its construction from roof to foundation, exterior to interior. The inspection will also seek to identify where things are located like; gas shutoff, water shutoff, electrical service, all of which is notated on the report.
Getting a professional inspection is crucial for older homes because age often takes its toll on items such as the roof of the home. With older homes problems can also be the result of neglect, hazardous repair work, or additions/remodeling projects performed by the owner.
If you’re buying a new home a home inspection is still a wise investment as new homes frequently have defects, whether caused by an oversight during construction or simply human error.
Defects
Home inspections target two kinds of defects: the kind you can see (a patent defect) and the kind you can’t see (a latent defect).
Patent defects are easy to spot: for example, water stains, ceiling cracks, sticky windows or sagging floors are patent defects. Latent defects are more elusive because they may be hidden: for example, faulty plumbing, asbestos ceilings or dry rot.
Some defects are trivial; others are more serious, your Realtor can help you decide whether you need to act on any defects the inspection uncovers.
An Inspector Will Educate You about Your House
If you’re able to attend the home inspection be sure to do so as it is an educational experience. Most buyers want to learn as much as they can about their purchase so they can protect their investment. Your inspector will give you tips on maintaining your home and it’s mechanical systems and keeping it in good shape.
Finding an Inspector
As your real estate agent we can recommend an experienced ASHI-certified home inspector. We suggest that buyers choose an inspector who can provide proof of membership in the American Society of Home Inspectors (ASHI). While home inspection is fairly unregulated in most states, ASHI-certified inspectors meet stringent requirements and abide by a strong Code of Ethics.
Standard Home inspections cost approximately $350-$500, depending on the size of the house and location. You may find the cost of inspection high, but when you weigh the cost against the potential risk you’ll realize it is money well spent.
Inspection Timing and Results
Home buyers usually arrange for an inspection after signing a contract or purchase agreement with the seller. The results will be available within a few days, however, if the inspector identifies any major concerns he will discuss these with you immediately. When the report arrives your Realtor will review the inspector’s findings with you and alert you to any costly or potentially hazardous conditions. When only minor repairs are needed, the seller will usually agree to remedy these and proceed to closing. If costly repairs are warranted, the seller may be willing to adjust the home’s price or the contract’s terms. In some cases, your Realtor may advise that you not buy the home unless such problems are remedied.
Types Of Inspections
Again a standard inspection covers a home’s heating and air-conditioning systems; plumbing and wiring; roof, attic, walls, ceilings, floors, windows, doors, foundation, basement and appliances. Overall inspections do not cover soil, pools, wells, septic systems, building code violations or environmental hazards such as lead. Specialized inspections usually involve an expert and can cost more.
| Type of inspection | What it covers | Cost/who pays | Remedies |
| Standard pre-purchase | Overall home construction and condition, including major mechanical systems | $200-$500; buyer | Conduct further specialized inspections; repair |
| Wood damage (required by many lenders; check with yours) |
All wood portions of home (interior and exterior) | $75-$200; negotiable | Repair or replace damaged wood; treat for wood-destroying insects or organisms |
| Lead (disclosure required on all homes built before 1978) |
Presence of lead in paint, plumbing or other areas | $400 for basic survey; negotiable | Repair or replace affected areas |
| Radon (disclosure of known elevated levels required) |
Presence of naturally occurring radioactive gas | $150 for basic survey; negotiable | Seal foundation cracks, install a sump pump; ventilate basement or crawl space. |
| Environmental hazards (asbestos, formaldehyde, petroleum, toxic chemicals) |
Presence of any substance in building material, soil, water or air that poses a health risk | Price varies; negotiable | Remove hazardous material, such as asbestos, or source of danger, such as a buried oil tank. |
| Soil | Condition of soil under and around foundation and retaining walls | $300 to $2,000; negotiable | Repair or treat problem |
To help assure you of the greatest protection possible from undetected property flaws we have developed a unique Buyer Protection System.
(1) First, our Buyer Protection Contract Home Inspection Clause is the strongest in the business. It gives you the right to conduct an inspection, the right to select the inspector, and gives you the sole right to determine whether the home “passes” or “fails.” If you’re not happy you can cancel the purchase and receive your earnest money back, or demand the seller make repairs. Period.
(2) Second, we recommend the toughest, most thorough inspectors in the business – ASHI members or NAHI members. Fewer than 20% of all home inspectors qualify for these elite groups. These inspectors may cost a little more, but they are well worth it.
(3) If flaws are detected and you want them repaired, we see that the work is done correctly by using our Buyer Protection Repair Addendum. Don’t just “find” problems, get them fixed. Correctly! Occasionally you will discover a “flawless” home. At other times flaws will be so severe that all you can think about is canceling the sale. Usually, however, the result of your home inspections will be somewhere in between – you still want to proceed with the purchase, but you want the seller to fix certain things. This brings up an important point. The ultimate goal of a home inspection is to detect flaws and to get them fixed. Correctly.
Many agents do not know how to protect buyers in this important area. Even “experienced” agents don’t know how to protect the home buyer when it comes to negotiating repairs! Below are some of the things we have learned.
Put all repairs in writing. This should go without saying, but too many people (even “experienced” agents) rely on verbal repair agreements.
Be specific. Don’t just write, “re-roof.” Instead be as detailed and specific as possible. “Tear off existing shingles, felt and flashing; check roof decking and replace defective boards as needed; install new 15 lb. felt, new 30 year self-sealing dimensional shingles of Buyer’s color choice, install ice dam and drip edges, re-flash all areas, and remove all debris by a licensed, bonded and insured roofing contractor.” The more specific your Repair Addendum, the less room for problems down the road.
Re-inspection. Make sure your Repair Addendum gives you the right to re-inspect after all repair work has been completed.
Use deadlines. Give the seller a deadline for work to be completed before the settlement date. That way you can check on the repairs while there is still enough time to do something about them.
Failed repairs. If a repair is in doubt, our Repair Addendum gives you the right to bring back the original home inspector(s) to check on the repair(s). If s/he “fails” the repair, our addendum then requires the seller to pay for the cost of a new, correctly done repair. This helps assure you that repairs will be done properly.
