Overview
The home and pest inspection are two very important items for the buyer in their due diligence on the property to ensure there are no major issues that could be very costly to them. While the seller is required to disclosure known defects through the Transfer Disclosure Statement (TDS) and/or Seller Property Questionnaire (SPQ), the home and pest inspections by licensed professionals who are independent of the transaction will help to uncover costly issues, if any.
What to Expect
- A home inspection will include a thorough overview of all the major mechanical and structural systems of the home. Those items include plumbing, foundation, roof, attic, fireplaces, HVAC, attic, appliances, along with a general look at the interior and exterior of the home.
- The average home takes about 2-4 hours
- The buyer should attend the home inspection and most inspectors want the potential buyers to be with them during the inspection to explain their findings
- The average home inspection runs from $300-$500 but varies by the size of the home
- The formal home inspection report will be available usually within a couple days after the inspection
Finding a Home Inspector
Your realtor will have a list of home inspectors as a reference and you can also find one through the American Society of Home Inspectors (ASHI) online. You can also hire a Certified Master Inspector (the top professional designation in the industry). Certified Master Inspectors had to complete at least 1,000 fee-paid inspections.
In a hot market, should you waive a home inspection?
When competing fiercely for homes in hot markets, buyers may be tempted to waive the inspection. This is not recommended; however, one creative element is to put in the purchase agreement that buyer will only have the right to cancel if the inspector finds issues totaling more than a certain dollar threshold.
What do home inspectors look for?
Below is a list of what the inspector will review, according to the American Society of Home Inspectors (ASHI):
- Heating system
- Central air conditioning system (temperature permitting)
- Interior plumbing and electrical systems
- Roof
- Attic, including visible insulation
- Walls
- Ceilings
- Floors
- Windows and doors
- Foundation
- Basement
- Structural components
The inspector can’t tear your home apart to inspect plumbing and electrical, however, the more an inspector can access, the more complete the final report will be.
What to expect from a house inspection as the home seller
It’s in your interest as a home seller to provide quick and easy access to everything on that home inspection checklist. Here are some ways you can help:
- Leave keys (for instance, for your electrical panel), and label where the inspector can find them
- Make sure all pilot lights are on for fireplace, furnace, etc. so the inspector can check the heating and other appliances
- Have unobstructed path to HVAC, water heater and anything else that needs inspecting
- Ensure attic is accessible
- Clean up key areas in your yard so the inspector can easily access, drainage access points and other areas surrounding the home
- If the home is vacant and the utilities have been shut off, have them reconnected
Additional potential costs
Careful buyers — or ones alerted to potential problems by the inspector — may want to commission further home inspection reports from specialists concerning the possible presence of:
- Radon
- Termites
- Asbestos
- Lead piping or paint
- Mold
- Water damage
- Roof issues
- Other safety issues
- Pool and spa
Possible deal breakers in the home inspection
The issues below are ones that can often result in eye-watering repair bills. However, it’s important to recognize that each home is unique and all homes have issues, just how big. Something that sounds really bad and potentially expensive can turn out to be nothing or easily fixed.
Major issues that need to be fixed or potentially walk from the deal:
- Structure and Foundations – Issues with foundations are the ones that strike the most fear in home buyers’ hearts. Of course, a minor issue caught early can be fixed quickly and inexpensively. But, more often, repair bills quickly run to four and maybe five figures — possibly even more for big homes with big problems. You could call in a structural engineer who specializes in foundations. That way you will understand the problem more completely and have more ammunition to negotiate with the seller.
- Electrical – Rewiring a home can be disruptive and expensive. But the safety issues that come with old wiring are too scary to live with.
- Water Damage and/or Mold – Mold issues need to remediated, so be sure to do further investigation and have them fixed. Mold can also be a sign of issues with plumbing and piping of the home, an entire other headache.
- Termites – Termites love eating all the wood that holds up a home. Although it’s possible in most areas to eliminate a current infestation and then protect against future ones, that’s not the only issue. You may also need a specialist to assess the structural damage they’ve already done.
- Lack of permits – If a previous owner upgraded the home without permits to do so, that issue can come back to be a huge issue down the road. You can’t be sure about the quality of the work and on top of that, your homeowner’s insurance likely excludes any damage that arises from work that was done without a permit. Imagine your home burning down and the insurance not covering it because of lack of a permit.
A bad home inspection should not be an automatic turn-off for a buyer and they need to weigh if they want to request repairs by the seller and/or concessions. Be sure to get cost estimates for repairs if you are going to shoulder the cost and ensure that your lender will still sign off on financing the property.
Other areas that may require other specialists
- Water Damage / Mold – buyers should be concerned about water damage and mold. If the seller discloses that there has been either a fire, or flood, the property should be inspected for potential mold
- Square Feet – The square feet of the home on the MLS listing document may have been supplied by the county assessor’s office, however, they are not always accurate. If square footage is important, the home buyer should have an appraiser, or architect, validate.
- Repairs and new Construction – buyers should be concerned about recent repairs and new construction. A seller could have made a quick fix to hide old problems, or a seller may have engaged in unpermitted upgrades or additions which can lead to fines and penalties. If a property appears to have been remodeled, the buyer should not only request copies of any invoices, or other documentation regarding the work performed, but should also contact building and safety to ensure the work was properly permitted
- Roof – If the home inspector discovers any problems with the roof, you may consider having a licensed roofer come inspect the property.
- Swimming Pool or Spa – If the home has a pool or a spa, you will want the home inspector (or a pool company) to look for leaks, evaluate the age of the system, how well the cleaning system functions, and any heater. You will also want to ensure that the fencing around the yard or pool is in compliance with state laws (i.e. 60 inches high)
- Sewer and/or Septic Systems – a home connected to the city sewer should be verified and inspected by a plumber, contractor, or home inspector. The main water line, if 30 years old may need to be repaired and replaced and this can be an expensive process and who pays for what can depend on the property. A septic tank should be inspected by a qualified septic tank company.
- Property Boundaries – Property boundaries should always be of concern, and it may be worthwhile to have a survey done depending on the property as remediation can be very costly. A list of surveyors may be obtained from the Board For Professional Engineers and Land Surveyors at http://www.pels.ca.gov/.
- Outside the home – a buyer should thoroughly investigate the surrounding area for schools, freeway or street noise, air traffic noise, crime statistics, sex offenders, change in zoning that may affect the property, and potential hazards such as earthquake fault zone, etc.
Home buyers should visit the property at different times of the day and should talk with surrounding neighbors and the police if desired.