What is a home inspection?

Real estate sales frequently include a house inspection to assess its condition and safety. A certified home inspector will evaluate the heating, cooling, water, sewage, plumbing, and electrical systems for fire and safety issues. The house inspector may also look for pests, water, fire, or other issues that might lower the property’s value.

How Home Inspections Work

any house buyer should engage home inspectors to provide a written report on the property’s condition, including necessary repairs, maintenance concerns, and any hazards. The home inspector will evaluate the home’s structure, from foundation to roof and systems. This inspection will verify if the home meets housing codes.

Property inspections may save buyers money and time by revealing a lot about a new or existing property. For sellers, an examination before listing their house might allow them to make structural repairs or update and replace systems to enhance sales.

After signing a sales contract, a buyer and seller usually have a house inspection. A contract should include an inspection contingency, also known as a “due diligence” contingency, allowing the buyer time to find an inspector, schedule an inspection, receive the report, and decide on the next steps.

An inspection report might list physical faults that lower a home’s value and cosmetic concerns. Based on the report, the buyer may proceed with the transaction, arrange more inspections, renegotiate the selling price with the homeowner, request that the seller pay for specified repairs, or cancel the contract. If the buyer requires extensive repairs, they may also seek a re-inspection with the original inspector to confirm that the problem was fixed.

Other, more specialized examinations may check for asbestos, mold or mildew, termites, vermin, radon, lead, sewage lines, chimneys, or other structural components. Additional costs may apply.

In mortgage arrears cases, lenders may request monthly house inspections, costing homeowners $10 to $50 per visit. However, the Consumer Financial Protection Bureau (CFPB) reported in March 2023 that some servicers charged such fees even if the house inspector went to an inaccurate address. CFPB called such an illegal “junk fee.”

Home Inspection vs. Appraisal

The purpose of a house inspection is to assess its condition, whereas an appraisal is to ascertain its market worth. Both are necessary for an average house sale, but for different reasons.

After scheduling a house inspection, the buyer can learn about the home’s condition and the systems’ safety. In contrast, lenders must arrange a certified or professional appraisal for house buyers applying for a mortgage.

Usually done behind closed doors without the buyer’s knowledge, valuations might alter loan amounts. The appraiser examines similar property prices, home size and quality, lot size, and more to value the home.

Do you need a home inspection?

Inspecting a house before buying is the best way to check its safety and condition.

When a home inspector finds anything wrong, what happens?

If a house inspector detects dangerous materials, malfunctioning systems, or expensive cosmetic problems, a buyer might back out, renegotiate the price, or ask the owners to fix them.

Are home appraisals and inspections the same?

An appraisal and an inspection are separate, done for different reasons by individuals with different skills. A mortgage lender orders an appraisal, and the appraiser uses numerous methods, including similar house sales, to determine its worth. This helps the lender decide how much to lend on the property. The house inspector checks for safety and possible issues such as a leaking roof, peeling paint, or violations of the local building code.

A home inspection costs what?

The cost of a house inspection depends on location, size, age, and other considerations. Redfin reports that inspections cost $200–$500, averaging $336.

The Verdict

Home inspections are optional but inexpensive compared to home purchases. An inspection can alert potential buyers to costly repairs or other issues they may not have seen.

Conclusion

• Home inspections assess safety and condition.
• Buyers usually pay for a house inspection and may close, renegotiate the price, request repairs, or back out.
• A house inspection differs from a home appraisal, which a lender schedules to establish a property’s worth for a mortgage.
• Be sure to investigate a home before buying. Skipping an inspection might be unsafe and pricey.