By the time you put in an offer on a house, you may think you know all there is to know about the property. However, a professional home inspection can offer much-needed reassurance to home buyers by allowing them visibility into any potential problems before closing on the home. Keep reading to learn more about home inspections and whether or not you should get one before buying a home!
Key Takeaway
Inspecting a home before purchasing it is an important, but optional, step in the home-buying process. Completing a home inspection can arm you with knowledge about the extent and nature of any home defect, and ensure such defects are either corrected and/or negotiated into the sale price.
Home Appraisals vs Inspections: What's the Difference?
When it comes to obtaining a mortgage, the terms "home appraisal" and "home inspection" are often used interchangeably. However, while they both involve evaluating a home's condition, there is an important distinction between them. A home appraisal is conducted by a state-certified appraiser with the intention of determining what the market value of a property is. On the other hand, a home inspection is conducted by either a certified inspector or general contractor with the goal of identifying any potential defects in the property that should be addressed.
By understanding the differences between these two types of evaluations, you can better make an informed decision when it comes to obtaining a mortgage. While neither are legally required for most mortgages, an inspection can be useful in identifying any potential repair costs that may affect the overall cost of owning the home. Additionally, in certain cases, a lender may require a home appraisal as part of the loan process.
Types of Home Inspections
There are a variety of home inspections that can be conducted, depending on the type and condition of the property. The most common types of inspections include:
General Home Inspection - A general home inspection is conducted to identify any major defects in the structure or systems of a home (i.e. electrical, plumbing). These inspections typically cost between $200 and $500, depending on the size of the home.
Structural Inspection - This type of inspection is conducted in order to identify any damage or deficiencies with the foundation or other supporting structures of a property (i.e. roof, walls). These inspections typically cost between $400 and $1,000.
Pest/Insect Inspection - This type of inspection is conducted to identify any pest and/or insect infestations, as well as the extent of any damage caused by them. These inspections typically cost between $150 and $500.
Mechanical Inspection - A mechanical inspection is conducted to identify any issues with the home’s HVAC system, plumbing system, electrical wiring, etc. These inspections typically cost between $200 and $500.
What Happens During and After a Home Inspection?
A home inspection takes about two to three hours, depending on the size of the property. During the inspection, a certified inspector or contractor will look for any potential issues with the structure and systems of the home. This includes looking for water damage, inspecting electrical wiring, checking for signs of pests/insects, and more depending on the type of inspection. Once the inspection is complete, they will provide the homeowner with a written report detailing any issues that were identified.
From there, it is up to the homeowner to determine how they wish to proceed. If necessary, they can address any repairs or renovations before closing on the property.
Why are Home Inspections Important?
Home inspections are important for a variety of reasons. First and foremost, they can provide valuable insight into the condition of a home before you purchase it. This can help to identify any potential repair costs that could affect your overall cost of ownership, as well as give you peace of mind knowing that the property won't need major repairs after moving in. Additionally, an inspection can also help to identify any potential safety issues that should be addressed before moving in.
Do Mortgage Lenders Require Home Inspections?
Most mortgage lenders do not require home inspections before approving a loan. However, some may require a home appraisal as part of the loan process in order to verify the market value of the property. Additionally, if there are any potential safety issues identified during an inspection or other concerns that could affect the sale of the home, the lender may require a more thorough inspection or renovation in order to approve the loan.
What is a Home Inspection Contingency?
A home inspection contingency is a clause that is often included in purchase agreements. This clause gives the buyer the option to back out of the contract if any major issues are uncovered during an inspection. If this happens, the seller will typically be required to repair or replace any affected items before closing on the property. Otherwise, they may be responsible for covering any losses incurred by the buyer due to the defects.
Having a Home Inspection May Be a Good Idea In the Long Run
Although a home inspection is not legally required to obtain most mortgages, it can be beneficial in the long run. Not only will it help you identify any potential repair costs that could affect the cost of ownership, but it can also help you save money for other expenses, and give you peace of mind knowing that your new home is safe and free of any major defects or safety hazards. Additionally, if there are any major issues discovered during an inspection, you may be able to negotiate a lower purchase price to cover the cost of repairs or renovations.
Final Thoughts
There are many steps in the home-buying process, but few are as impactful as the home inspection. If you're looking to get the best understanding of what condition your future home is in and limit the risk of future repairs before committing to it, then investing in a home inspection can be invaluable.
