What About Home Inspections?

If you've bought or sold a home within the last few years, chances are you've given at least some thought to home inspections.  In my job as a Realtor with HOME Real Estate, I've seen buyers and sellers use the inspection process to their advantage.  I've also seen and heard about many who have not taken advantage of this powerful tool in the home buying process.

Before we go any further, let's define exactly what we're talking about - what kinds of inspections are appropriate for most buyers and sellers?  In almost all instances, the starting point should be a Whole House Inspection.  This inspection will give an overall indication of a home's condition, and will specifically look for issues relating to major systems, as well as health and safety issues.  A thorough whole house inspection will look at the roof, plumbing, electrical system, furnace, air conditioner, foundation, attic, and even appliances. A whole house inspector is a "generalist" - it may be necessary to contact a specialist for specific issues.

In addition to the whole house inspection, you may also want a few more specific inspections:

• Termite inspection (most likely required, if you are financing your home).  
• Mold test (typically performed after some evidence of possible mold is noted on the whole house inspection report)
• Radon test
• Other specific inspections based on concerns raised in the whole house inspection - includes a roof, foundation, furnace and air, etc.

In most cases, I'd suggest a buyer have a whole house, termite, and radon inspection.  Other tests or inspections may be appropriate based on the apparent condition of the home or on the results of other inspections.

It's a no-brainer:  If you're buying a home, get an inspection.  In my opinion, there are very few instances where it makes sense to skip this important step:

• If you are in the building trades, you may be able to spot most potential problems yourself.  Keep in mind,  you may forfeit your right to cancel the contract if you don't have an inspection.
• If you are buying a home that has been pre-inspected by a reputable company, you may be able to rely on that inspection.  You should only do so if the inspection has been performed fairly recently (certainly no more than 6 months), of course.
• If you are buying a distressed home (short sale, foreclosure, etc.).  The sale will be as-is, and you should know enough to be comfortable with the home's condition.  Be prepared to do some repairs.
• If you're buying a home you've lived in for a significant period of time, you may already know about all its faults.

For the rest of us, get an inspection.  Even an inexpensive home is worth a lot of money - don't cost yourself big bucks by trying to save a few hundred dollars.

OK, so you're convinced, right?  So, how do we go about picking an inspector?  First of all, ask your realtor for recomendations.  Hopefully, you've done a good job picking a realtor, and you've found one who is looking out for your interests.  He'll probably be involved in more transactions in a single year than you will be in your entire life, so his opinion should count for something.  The realtor's recomendation is a starting point, but you should still perform your due dillagence - it's time to ask some questions:

• What is the cost of the inspection?
• What exactly is covered?  Is there a separate charge for the furnace and air inspection, termite inspection, or other tests?
• Does the inspection company also perform repairs, or do the specialize in inspections?  It may be OK for an inspection company to offer repair or mediation services, but it could cause a conflict of interest. 
• What training or certification is required of this company's inspectors?
• What additional tests or inspections does the company offer and/or recommend?
• What happens if the inspector makes an error - will the company stand behind it? 

Don't be afraid to ask questions - you're paying for it.  Ask your questions before you meet for the walk through - it's too late to change your mind after the work is done.  Oh, and while we're on the subject - if I had a realtor who objected to my asking questions of the inspection company, I'd start asking myself if I had picked the right realtor!

Most inspectors will check the house out, then go over the report with you.  Don't miss this walk through!  Sometimes the report will have a number of issues identified, but they're minor things that shouldn't be alarming - it can be hard to tell what's a big deal and what isn't without talking to the inspector.  Again, you should feel free to ask any questions during the walk through, and most inspectors will invite you to call them if you have any other questions after reading the whole report.

One caution:  don't get freaked out if you have a long report - every house will have some issues.  Try to identify which are serious, and focus on getting those taken care of.  Don't lose a lot of sleep over minor issues.  Remember, the seller wants to keep the deal together at least as bad as you do, so he should be willing to work with you to get the necessary repairs completed.  If you're reasonable, you'll be fine.

Inspections are nothing to be afraid of.  They are an important tool that will help the buyer and seller successfully complete their transaction.