Top Questions to Ask During the Home Inspection Process

 

Home inspections serve a variety of purposes, according to industry perspectives. Home inspectors, agents, home insurance companies, real estate attorneys, home loan lenders and underwriters, and government homeownership agencies like the FHA, VA, and USDA all have a stake in making sure that a home is safe to live in before it’s sold. As a real estate purchase contract goes into so many hands, it’s important for homebuyers to understand home inspections and to ask the right questions before they begin, during the inspection, and after the inspection is complete.

 

First and foremost, the homebuyer should have an inspection contingency in their purchase contract, which gives them the option to back out should the home inspection reveal more issues than the buyer wishes to deal with.

 

Once a seller and homebuyer have a signed contract, the homebuyer has a brief period to hire a home inspector to perform the inspection and provide the homebuyer with a written report. The inspection and report address safety issues, the structure of the home, and all its systems, plumbing, electrical, HVAC, etc. The purpose of the inspection is to inform the buyer in more detail of issues that could cost them money or put occupants at risk, for example, aging systems, non-working appliances, signs of structural damage, and the overall integrity of the home. While home inspections aren’t mandatory, some lenders insist on them; if a borrower is using an FHA or VA loan, for example, the home inspection must meet government requirements, which can be stricter than those for conventional loans.

 

The homebuyer goes over the report and decides whether to ask the seller to make certain repairs or replacements, which opens the sales contract to negotiation. If the seller refuses, the homebuyer can counter with a lower price. If the seller agrees to all the homebuyer’s demands, or agrees to some but not all, or lowers the price of the home, the homebuyer can accept the new terms, and the contract is back in play. The last option is for the buyer to cancel the contract.

 

Home inspections are visual observations of easily accessible installations and components. A thorough inspection should take two hours or longer to note structural or system deficiencies, repairs that should be made, and safety concerns.

 

Per the American Society of Home Inspectors, these are the inspector’s concerns:

 

• Structural components
• Exterior
• Roofing
• Foundation
• Plumbing
• Electrical systems
• HVAC (heating, ventilation, and air conditioning)
• Interior
• Appliances
• Insulation and ventilation
• Attics and crawlspaces
• Basement
• Landscaping and drainage away from the house

Separate inspections are required for pests, foundations, roofing, environmental issues (radon, lead paint, asbestos, mold), and separate buildings on the property, such as a detached garage or barn. Inspectors look for problems you can see or smell, such as mold (a possible sign of a leak), ragged roof tiles that could signal an expensive replacement, or termite damage, like crumbling wood trim.

 

Although most home inspectors have prior experience as contractors or in construction, they cannot use inspections to refer clients to their own businesses. The exception is specialized environmental testing, which can be performed separately for an additional fee. Inspectors cannot damage a property under the guise of investigating a problem; they cannot knock holes in walls, pull up carpet, or otherwise alter the home. Even with the knowledge, they aren’t authorized to inspect swimming pools, hot tubs, or outbuildings.

 

Inspectors are not required to take on undue liability or risk. They don’t have to enter areas with obvious hazards, such as sagging roofs or porches with broken steps. They also aren’t expected to move furniture or climb ladders to access unsafe areas. If they cannot complete part of the inspection, they can note the hazard in the report or return later once it has been addressed.

 

Homebuyers may be tempted to ask questions like, “How long before I need to replace the A/C?” or “Is the home worth my offer?” Inspectors cannot speculate on system lifespans or home values, but they can report the age and condition of accessible systems. Buyers can share the inspection report with their real estate professional for guidance on value or next steps.

 

Home inspections are regulated by contractor/construction industry licensing boards. Each state sets its own licensing requirements and regulations, with some, such as California and Colorado, requiring no license to become a home inspector, but practitioners have to adhere to standards as set by trade organizations or state trade practice legislation. Other states require extensive training, exams, and continuing education. Some states require 90 to 100 inspection experience by “shadowing” a licensed inspector, which may be hard to achieve. As they’re basically training their future competition, some inspectors refuse to be shadowed. This keeps the available pool of inspectors smaller, giving less choice to consumers.

 

Like other trades, home inspectors can belong to trade organizations that provide Standards of Practice, Codes of Ethics, training, certifications, continuing education, and other quality programs. As members, inspectors benefit from referrals, as many consumers will contact these trade organizations to find the best professional possible in their area. The most well-known associations are the American Society of Home Inspectors (ASHI), the International Association of Certified Home Inspectors (InterNACHI), and the North American Association of Home Inspectors (AHI).

 

Homebuyers can also ask for referrals from family and friends, and depending on state law, a real estate professional may be able to provide a list of well-regarded inspectors, but they can’t ethically recommend anyone personally due to potential conflict of interest. For the same reason, lenders no longer recommend certain inspectors to borrowers.

 

The truth is that time, weather, constant use, neglect, sub-par workmanship, and other factors cause even the most solidly-built homes to deteriorate, so homebuyers should expect some negatives on their inspection reports. The question is, which issues are serious, and are they too numerous to address? Progressive notes some red flag issues to watch out for:

 

• Inadequate surface grading and drainage
• Structural failures, foundation or wall cracks, leaking roof
• Electrical problems, flickering lights, and outlets that aren't grounded
• Plumbing problems such as a running toilet, slow drains
• Malfunctioning furnace or HVAC system
• Inadequate maintenance
• Mold associated with water leaks
• Evidence of pests

Home inspections don’t pass or fail a home. They leave the decision of what to do with the homebuyer, who can consult with their real estate professional, lender, a contractor, or whoever else they deem worthy of guidance. Some costs may be left to the seller, shared between the seller and buyer, or taken on by the buyer, but lenders may require sellers to take care of certain issues before the loan can be approved.

 

The main consideration is how much the homebuyer truly wants the home. A lot depends on the market, but even in fast markets where many buyers choose to skip the home inspection in order to score points with the seller, it’s best to know as much as possible about the property.