When potential buyers are touring a home, they’re often focused on how they’ll afford their monthly mortgage payment, rather than picking out flaws in the electrical system.
“They are not necessarily thinking about the pipes in the attic or gas that is venting into the wrong place,” said Sacha Rady, a real estate advisor with Engel & Völkers.
That’s where a home inspection comes in. A home inspection offers a comprehensive overview of the property, from foundation issues to roof damage and everything in between. It gives homebuyers an objective look into the underbelly of the property, said Rady.
The home inspection process is critical to understanding any potential safety issues or future repair costs. Here’s why home inspections are important.
What is a home inspection?
A professional home inspection is a thorough review of a home’s physical structure and its interior systems. The purpose is to uncover anything that needs major repairs or replacement, so the homebuyer, mortgage lender and insurer can be aware of anything that affects the home’s safety and its value.
According to Zillow’s 2023 Buyer Consumer Housing Trends Report, 67% of homebuyers said their final offers depended on a property passing a home inspection.
How does a home inspection work?
As the buyer, you can decide whether to include an inspection contingency in the purchase offer you give the seller. If the seller accepts the offer and both parties sign the agreement, you typically have about a week to complete the home inspection. A home inspection cost is usually between $200 and $500 and takes about two to four hours. Home inspections for larger and older homes tend to cost more and take longer to complete.
During the process, a professional home inspector will walk through the interior and exterior of the home and other spaces like the basement, attic and accessory structures. The inspector will check that everything works, look for potential issues, take photos and create a written report with their findings.
Once you’ve reviewed the detailed report, the inspection contingency might give you some of the following options:
- Move forward with the purchase with no changes to the purchase agreement.
- Negotiate with the seller for repairs or closing credits.
- Cancel the contract and walk away from the sale without penalty.
What you should look for in a home inspection
A typical inspection includes assessing the physical condition of the following:
- Heating, ventilation and air conditioning, or HVAC, system.
- Interior plumbing system.
- Electrical system.
- Roof.
- Attic.
- Visible insulation.
- Walls.
- Ceilings.
- Floors.
- Windows.
- Interior and exterior doors.
- The home’s foundation.
- Basement.
- Any other structural components.
What might a home inspection skip?
Familiarize yourself with a home inspection checklist. When you hire a home inspector, you should be aware of what they will and won’t do.
“They won’t be poking a hole in the wall to look at insulation [and] they won’t climb on your roof to check out the shingles up close,” said Bradley Wilson, a licensed real estate salesperson with Finger Lakes Sotheby’s International Realty.
Your inspector may also need to skip visibly unsafe spaces they can’t access. If the inspector finds an out-of-reach area where they can’t make a visual assessment, they’ll make a note in their report.
Depending on your state’s laws and what the inspection company offers, you may be able to request additional inspections to help identify specific issues. Some of these add-ons may include testing for:
- Lead paint.
- Water quality.
- Termites and other pests.
- Radon.
- Fungi, mold and allergens.
Why a home inspection is important
A home inspection gives you many protections and advantages during the homebuying process. Here are a few to consider:
An inspection may give you more negotiating leverage: If a home inspection report reveals any serious problems, you might be able to use the results to negotiate with the seller. “Buyers can use this to request a price decrease or credit on the purchase to address the issues,” said Lisa Simonsen, a licensed associate real estate broker at Douglas Elliman Real Estate. While the seller isn’t required to accept your request, they may be willing to compromise if they’re motivated to sell.
An inspection report may help you anticipate future costs: Home inspectors can tell you what might need immediate attention, like electrical panels or the air conditioner. You can use this information to budget for repairs if you decide to move forward with the home purchase.
An evaluation is essential for safety concerns: An inspection may reveal critical issues with the home, like faulty electrical wiring, mold or a weak foundation. Learning about these flaws can help you estimate repairs or decide whether to buy the home at all.
An inspection may be required for homeowners insurance: Insurance companies may want to review the inspection report “to know the house is in good shape and safe, so they’re not insuring a risky property,” said Shannon Feick, co-founder of ASAP Properties.
Mortgage lenders may require an inspection: Some mortgage lenders ask borrowers for a copy of the home inspection report during the underwriting process. The lender wants to know about any major problems with the asset they’re funding. If you default on the loan, the lender wants to be able to sell the home and recoup its investment.
How to find a home inspector
Home inspections are important, so you’ll want to make sure you find a good inspector who meets your needs.
Online guides can help you research your state’s regulations on licensing and certification requirements and find certified home inspectors who meet those standards. For instance, the American Society of Home Inspectors and the International Association of Certified Home Inspectors offer search tools to help you find inspectors in your area.
You can get recommendations for home inspectors from your real estate agent. You can also ask whether your friends, colleagues or relatives recently bought a home and have an inspector referral.
Once you have a few good recommendations, read reviews from former customers. Check whether those customers were generally satisfied with the process, the cost and the inspector’s findings.
Can I waive a home inspection?
Yes, you may decide to waive the home inspection. “This is common in competitive seller’s markets, where buyers have little ability to negotiate,” Simonsen said.
But you don’t have to forgo the inspection entirely. When Simonsen’s clients ask about waiving the inspection, she may suggest making an offer “inspection noncontingent.” That means you’ll order an inspection and use the report for informational purposes and to help you budget for repairs -- not to negotiate for funds for necessary repairs.
The bottom line
A home inspection is an important part of the homebuying process, allowing you to uncover and remediate problems with the property before you buy it. Many real estate agents encourage buyers not to skip the process.
If the market where you’re looking to buy a home is competitive, you might decide against using an inspection contingency, but you can still ask the seller for an informal inspection.
FAQs
A standard home inspection takes about two to four hours, but the size and condition of the home may affect the time frame. The inspection will take longer if you order add-on services.
No. A home appraisal helps determine the property’s market value, while the inspection assesses the condition of the home.
If you find major issues with the property, your inspection contingency typically allows you to negotiate for repairs or cancel your purchase contract.
A home inspection contingency is an optional clause a homebuyer can include in their purchase and sale agreement. It allows the buyer to hire a professional inspector to assess the property as a condition of the home purchase. The buyer has the option of canceling the contract without penalty if they’re not satisfied with the results of the inspection.
