Table of Contents
- What Is a Home Inspection?
- Key Takeaways
- How a Home Inspection Works
- Important Note on Mortgage Delinquency Inspections
- Home Inspection vs. Appraisal
- Do You Need a Home Inspection?
- What Happens When a Home Inspector Finds Something Wrong?
- Is a Home Appraisal the Same as an Inspection?
- What Does a Home Inspection Cost?
- The Bottom Line
What Is a Home Inspection?
If you're considering buying a home, you need to understand that a home inspection is essentially an examination of the property's condition and safety, usually done before the sale closes to spot any issues that might affect its value.
As a qualified inspector, I'll assess things like the heating and cooling systems, plumbing, electrical work, and look for fire or safety hazards. I'll also check for signs of insect damage, water issues, fire damage, or anything else that could lower the property's worth.
Key Takeaways
You should know that a home inspection checks the property's safety and current state. As a buyer, you'll typically arrange and pay for it, and based on what it reveals, you might proceed to closing, renegotiate the price, ask for repairs, or walk away.
Don't confuse it with a home appraisal, which your lender requires to value the property for a mortgage. Before you buy, get an inspection—waiving it could be risky and expensive down the line.
How a Home Inspection Works
When you're a potential buyer, you often hire an inspector to visit the property and provide a written report on its condition, including any repairs needed, maintenance issues, or hazardous problems. The inspector will look at the structure from foundation to roof and all the systems to ensure they meet current codes.
This can reveal a lot about a new or existing home, saving you money and hassle. For sellers, doing an inspection before listing gives you a chance to fix structural issues or upgrade systems to make the sale smoother.
Usually, the inspection happens after you've signed a sales contract, so make sure it includes an inspection contingency. This gives you time to hire an inspector, schedule the visit, attend if you want, get the report, and decide your next steps.
The report might cover major defects that hurt the home's value or just cosmetic fixes. From there, you can proceed, get more inspections, renegotiate, request seller-paid repairs, or cancel. If big repairs are needed, you might ask for a re-inspection to confirm fixes.
You might need specialized inspections for things like asbestos, mold, termites, radon, lead, sewer lines, or chimneys, which could cost extra.
Important Note on Mortgage Delinquency Inspections
If your mortgage is delinquent, the lender might require monthly inspections by the servicer, charging you $10 to $50 each time. But a 2023 CFPB report pointed out that some servicers charge these fees even for visits to wrong addresses, which is an illegal junk fee.
Home Inspection vs. Appraisal
Remember, a home inspection is about the home's condition, not to be mixed up with an appraisal that figures out the market value. Both are key in a sale but serve different purposes.
You, as the buyer, set up the inspection and can attend to learn about the home's safety and systems. An appraisal, done by a certified appraiser, is scheduled by the lender when you apply for a mortgage, and it's usually without you there.
The appraiser uses methods like comparable sales, home size, quality, lot size, and more to set the value, which affects how much you can borrow.
Do You Need a Home Inspection?
Since a home inspection gives a thorough check of safety and condition, you should always get one before buying—it's a smart move.
What Happens When a Home Inspector Finds Something Wrong?
If the inspector spots unsafe materials, broken systems, or expensive cosmetic issues, you can choose to back out, renegotiate the price, or have the seller make repairs before closing.
Is a Home Appraisal the Same as an Inspection?
No, they're different: an appraisal, set up by the lender, uses valuation methods like comps to assess value for loan purposes, while an inspection just checks condition for safety or code issues like leaks or peeling paint.
What Does a Home Inspection Cost?
Costs vary by location, home size, and age, but generally run between $200 and $500, with an average of $336 according to Redfin.
The Bottom Line
Home inspections are optional but cheap compared to buying a home, and they can alert you to repairs or problems you might miss, making the expense worthwhile.
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