Understanding a Home Inspection from a Buyer's Perspective

What Is a Home Inspection?

Quite often a home inspection is misunderstood to be a home appraisal or building code inspection. A home inspection is not a home appraisal, which is a lender-required document that is completed by an Appraiser and defines a property's market value. A home inspection is not a building code inspection, which is a local government requirement. Building code inspections are performed by a building code inspector, who monitors the process of constructing a new home or the remodeling of an existing home, assuring that current building code requirements are met. An existing home needs only to meet the building code for the time at which it was built; it does not need to be brought up to current building code standards during the sale of a property. A home inspection is also not a technically exhaustive reporting of a home's components, nor is it intrusive or a guarantee that these components will not need repair or even fail at some future point. Rather, a home inspection is an objective, professional assessment of a home and whichever of its components that are both visible and accessible. It is intended to identify a home's condition at a single point in time and provide you with information about the home.

In years past, the practice of inspecting a home was defined solely by non-profit professional organizations. Today, several professional organizations exist for the purpose of educating, training, and qualifying professional home inspectors, in addition to building consumer awareness. Current organizations include the American Society of Home Inspectors (ASHI), the National Association of Home Inspectors (NAHI), and the International Association of Certified Home Inspectors (InterNACHI). Each of these organizations maintains its own code of ethics, standards of practice, education, and certifications. In addition to these professional organizations, more than 30 states in the United States today have enacted regulations that govern the home inspection industry. The ASHI website is also an excellent resource for information on what rules and regulations these states have enacted and the requirements of each.

Hiring a Qualified Home Inspector

Selecting and hiring a qualified, professional home inspector is the responsibility of the home buyer and should occur either prior to making a purchase offer on a home or as a contingency to the purchase agreement. Your home inspector should be an independent party to the real estate transaction, have experience within the local area, and be trustworthy. A simple conversation with your real estate agent and a search on the Internet or in a phone book will produce a few, if not several, home inspectors. Consider whether your state regulates home inspections and make sure that your home inspector is licensed or certified in accordance with state regulations. If your state of residence has no regulations in place or you want to be certain that you hire a highly trained, qualified home inspector, you should conduct interviews to confirm the inspectors experience, professional organization membership, and certification(s). Also, it is good practice to read their references with the local Better Business Bureau. Keep in mind that the cost of an inspection does not always indicate an inspector's quality.

What Does a Home Inspection Cover?

According to the U.S. Department of Housing and Urban Development (HUD), the typical cost of a standard home inspection can range from $300 to $500. This cost will vary, depending on where you live, the size of a home, its age, and the scope of services agreed upon with your home inspector. A standard inspection should entail a professional report upon completion that should include photographs and written or typed observations that identify systems, materials, the estimated remaining useful life of major systems, any major concerns, components that should be repaired or replaced, and any potential problems. The common scope of service for a home inspection should include observation and evaluation of the site, exterior, interior, walls, ceilings, floors, roofing, flashing, gutters, chimney(s), foundation, structure, basement, crawlspace, attic, insulation, and garage or carport, as well as the operation and evaluation of windows, doors, fireplace(s), and mechanical components including appliances and heating, cooling, electrical, and plumbing systems. If desired and if your inspector can perform them, additional services may include testing for radon, lead-based paint, mold/mildew, asbestos or formaldehyde, and wood-destroying insects and evaluations of outdoor structures, pool, spa, septic system, and well.

A standard home inspection will generally take from two to four hours. While an inspector is performing the inspection, it is a good idea to be present. Spending this time with your inspector is educational and will allow you to ask questions, take notes and develop an understanding of your home, as well as providing you with an opportunity to learn how to maintain it. Keep in mind your home inspector is looking for major adverse conditions and safety concerns; he or she is considering visual clues that could identify potential problems. Cosmetic defects or minor damage within and around the home will not be reported by your home inspector, as these are readily apparent and have zero negative impact on the more functional or structural components of a home. After the inspection is complete and you have received your report, take the time to thoroughly read it. Should you need clarification after reading your report, you should be able to communicate with your inspector and clarify all of your questions or concerns. Your home inspector does not pass or fail the home: he or she will provide you with information and an impartial perspective. The home you have had inspected may have significant issues or none at all. At this point in the process the decision to move forward or how to move forward with the purchase agreement is entirely up to you. It's important that you keep in mind that no house is perfect.