The Home Inspection Process

Before purchasing a home, the buyer and buyer’s real estate agent should insist on a home inspection beyond Uncle Jim the handyman. In fact, a lender will often stipulate that a loan is approved only after the home has been inspected.

What is a home inspection? What is included?

Think of a home inspection like a physical check up by your doctor or a mechanic doing a once-over on your vehicle before a big trip. A home inspection is an impartial assessment of the structure and systems of a home.

A typical inspection reports findings of a visual examination of the heating and central air conditioning systems; plumbing and electrical systems; attic, roof, and any exposed insulation; floors, walls, ceilings, windows and doors; foundation, basement, decks, spas, pools and any other components of the home.

In addition to reporting the current state of the home and structures, recommendations are also included. If your deck is fine this year but will likely need a new coat of stain and protectant next year, this should be included in the report. If the water heater shows a need for immediate services, that will be included.

What a home inspection is not is an assessment of value of the home. That is the job of the real estate agent and appraiser.

What credentials should I look for in an inspector?

In some states, home inspection professionals are required to pass certifications and re-educate every few years. In other states, there are no regulations or management of the field. For this reason, it’s important you ask for certificates of other industry networks that do require specific professional criteria be met.

American Society of Home Inspectors lists their requirements for all members online at www.ashi.org. The National Association of Home Inspectors also lists their requirements online at www.nahi.org. Their regulations are similar to those of the ASHI. Among them, the inspectors are required to report:

Systems and components that were inspected and are deficient or near the end of their service lives

A reason why the system or component is deficient or near the end of its service life.

Recommendations to correct or monitor the deficiency.

Any systems listed in the Standards of Practice (as declared by the network) that were not inspected, including the reason why.

If you are in a state that requires home inspectors be licensed, make sure yours is by asking for a copy of their current license. Inspection professionals should have successfully completed certification administered by Examination Board of Professional Home Inspectors. At the very least, check your inspector with the Better Business Bureau.

What will inspections typically cost? What is a home inspection worth?
Home inspectors set their own price, there’s no agency that oversees what they charge. The typical cost is usually between .1% – .2% of the cost of the home. For example:

$250,000 home value * .1% = $250

$250,000 home value * .2% = $500

A home inspection for a $250,000 home should cost between $250 and $500.

The value of a home inspection, though, can be much more. If your buyer is a new homeowner or new to systems or the environment of the home (e.g. septic system or snowy area), a home inspector can give them information like how to care for that new system or what to expect with weather patterns in the area. Additionally, since they are required to inform you of any potential hazards you may have missed, making your buyer much more knowledgeable of safety issues they might face.

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