A home inspection process is a non-invasive examination of the accessible structure and systems in a property. It doesn’t include drilling holes or going under the floor, as this isn’t possible and safe.
Inspectors also won’t comment on anything aesthetic unless it betrays a larger issue, like a ceiling stain that indicates water damage.
Inspection Contingency
In a competitive market, some buyers may waive their inspection contingency to speed up closing. However, waiving this clause means losing the opportunity to use the results of the home inspection as a negotiating tool. For example, if an inspector finds that a home’s light bulbs aren’t working or the smoke and carbon monoxide alarms aren’t functioning properly, then a buyer can negotiate for a lower price or a credit towards needed repairs to make up for these deficiencies.
A buyer can also use the inspection report to ask the seller for a reduction in the sales price or a time frame within which they could back out of the sale altogether. Some contracts specify a window of time, such as one to two weeks, during which buyers can walk away from a sale. If you are selling your home, prepare for your inspection by clearing your pets out of the house and by removing clutter so that an inspector can easily access areas such as the electrical panel or attic.
Inspection Report
Once the home inspection is complete, the inspector provides a detailed report of their findings. The report is usually organized by systems (such as electrical, plumbing, and HVAC) and may include photos where appropriate. It also includes a summary page, which highlights major concerns and recommendations.
Home inspectors are required to follow specific professional standards when creating their reports. If a report doesn’t follow standards, it’s worth finding another inspector.
A good report will identify any issues that need immediate attention and those that can wait for a while, or even be ignored altogether. It will also include a list of items that would be best left for a licensed expert, such as a plumber or electrician.
Typically, the buyer pays for the home inspection. However, in hot markets, buyers can often negotiate this cost with sellers. This can help them make a more informed purchasing decision and give them more leverage when asking for repairs or negotiating the sales price.
Buyer’s Inspection
If you’re buying a home, get pre-approved for a mortgage as early as possible. This will allow you to determine your budget and give you a better idea of how much you can afford. It’ll also help you determine if your creditworthiness is good enough to qualify for a mortgage.
Once the home inspector finishes, you’ll receive a written report of their findings. The report typically includes photographs and descriptions of the condition of each area of the property. The inspector may also cite specific issues and designate them by severity.
Before the inspection, turn on all utilities, and clear items that could obstruct access to the home. Taking this step will reduce the amount of time needed for the inspection and help ensure that all areas are covered. It’s also a good idea to prune trees and shrubbery before the inspection. This will reduce the risk of damage or rodents and make the home more attractive.
Seller’s Inspection
For sellers, the home inspection can provide valuable insights. It helps them understand what buyers are looking for, which can help them make informed negotiations. It also gives them a chance to address any concerns that may arise before they become problems.
The results of a home inspection can have dramatic impacts on the sale. For example, if significant defects are discovered, buyers can lower their offer or even withdraw from the transaction. In addition, the findings of a home inspection can influence financing options and the price of a property.
While it’s common for home inspectors to note repairs, it is up to the buyer and seller to determine who will cover the cost. Crucial repairs like damaged shingles or faulty smoke detectors should be covered by the seller, while other repairs can be negotiated between the parties. Your agent can advise you on how to approach these issues. They can recommend focusing on the most significant concerns and negotiating with reasonable buyers.