What Is a Home Inspection?

A home inspection observes and reports on the condition of a real estate, usually when it is on the market to be sold.  Buyers should always have a professional home inspection.

A qualified home inspector assesses the condition of the property, including its heating and cooling systems, plumbing, electrical work, water, and sewage, as well as some fire and safety issues. In addition, the home inspector will look for evidence of insect, water, or fire damage or any other issue that may affect the value of the property.

KEY TAKEAWAYS

• A home inspection is an examination of a property’s safety and current condition.
• A buyer arranges and pays for a home inspection and—depending on its findings—may choose to move on to closing, renegotiate the sale price, request repairs, or cancel the sales contract.
• A home inspection is not the same as a home appraisal, which is required and scheduled by a lender to determine the value of a property for which a buyer is seeking a mortgage.
• When valuing real estate for investment purposes, a home inspection is one of a number of variables considered.

How a Home Inspection Works

Potential home buyers often hire home inspectors to research a property and acquire a written report that details its condition, including an assessment of necessary or recommended repairs, maintenance concerns, and any other potentially costly issues. The home inspector will assess the physical structure of the home, from the foundation to the roof, as well as the home’s systems. This assessment will determine if the home is up to code.

A home inspection can tell a homebuyer a lot about a newly constructed home or an existing house, and save them money and aggravation. For sellers, meanwhile, having an inspection done before putting their home on the market can afford them the chance to make structural repairs or upgrade and replace systems that may increase the likelihood of a sale.

Typically, a home inspection is done after a sales contract or purchase agreement between a buyer and a seller has been signed. For this reason, it’s important that the contract include an inspection contingency (also known as a “due diligence” contingency), which allows a buyer time to find an inspector, schedule and attend—if so desired—an inspection, receive the inspector’s report, and decide how to proceed based on the information provided.

Depending on the report’s assessment, which can include everything from material defects that negatively impact a home’s value to minor cosmetic defects, a buyer may decide to proceed with the sale, schedule additional inspections, renegotiate the sale price with the homeowner, ask that certain repairs be made, or cancel the contract. If the buyer requests major repairs, they may also ask for a reinspection with the original inspector to verify that the original problem identified has been remedied. 

Call me for the needed referral of a professional Home inspector.