Under the microscope: Home inspection an essential part of the real estate transaction
You found it.
That cozy Cape Cod charmer in a great neighborhood matches your dream description of the perfect home. Better still, the price is right.
But while your eyes are feasting upon the gleaming granite counters, tile backsplashes and exotic hardwood floors, the structures and systems underneath remain a question mark. Your ideal home may look amazing, but how can you be sure it’s the right buy?
The answer, according to central Indiana real estate professionals, is the home inspection. Once you’ve settled on the right home and negotiated the purchase, it’s time to get your inspector involved.
“You are about to purchase one of the most important assets of your lifetime,” said Patrick Wilkins, a licensed real estate broker and office manager for Carpenter Realtors. “It makes good sense to spend $500 to be sure the home is everything you expect.”
The home inspection is a lengthy, detailed process, and the inspector will look at every functional component, including the roof, walls, ceilings, floors, foundation, windows, doors, insulation, wiring, heating and cooling systems, appliances and drainage.
Under inspection
In any home, the inspector likely will find minor issues – a leaky faucet, a squeaky door – but the main objective is to uncover major defects.
“A ‘major defect’ would affect the habitability of the house, endanger the inhabitants or possibly harm the home’s ability to appreciate in a reasonable market because of the needed repair,” Wilkins explained. “So even though the faucet has a drip or a door squeaks, the seller is not obligated to make those repairs in most cases.”
Inspection day
Expect the home inspection to take about 3 to 4 hours. Keep in mind that the inspection is all about business; it’s not the time to invite friends and family to tour your soon-to-be new house.
“You want to be totally focused on your inspector, as he will be informing you of needed maintenance and teaching you how to maintain your home,” Wilkins said. “It’s all right to bring a friend or relative who is more mechanically minded.”
When working with buyers, Amy Englert prefers to be present near the end of the inspection. Englert is a Certified Residential Specialist and serves as the direction of education for Carpenter Realtors.
“I like to show up for the last 15 minutes so the inspector can point out major defects and help me address the property on the buyer’s inspection response,” she said.
The sellers and sellers’ agent should be conspicuously absent.
“They will only interfere with the process and may jeopardize the transaction,” Englert added.
The inspection report
After completing the home inspection, the inspector issues a detailed report and provides copies to the buyers and their agent, who can review the results together. Their next step is to write a response to the seller.
“Our inspection response should address only major defects that would affect health and safety, the structural integrity of the home or, if not repaired, would seriously affect the home’s value,” Englert said.
That response goes to the seller’s agent, along with a copy of the inspection report, for review with the homeowner.
“It is important for the sellers to see the report because the pictures will add validity,” Englert noted. Most sellers haven’t been in their crawl spaces or on their roofs lately.”
The seller can then choose to repair all, some or none of the items listed on the response. Anything less than “all” is subject to negotiation.
When a buyer is dead set on buying a particular home, is it OK to skip the inspection?
“Never. Ever,” Englert said. “Even new construction will suffer from some element of human error. We are in a red zone for radon, which should be tested in every home in Indiana. Even if a home inspector is buying a home, he or she should have an objective third party do an inspection.”
Wilkins notes that some bank-owned properties are sold “as is,” which means buyers must be willing to take their chances.
“Many lenders won’t allow an ‘as is’ purchase because they have an investment in the property, and want to be sure it’s in reasonable condition,” he said.
Proactive approach
Some sellers choose to have their home inspected before they put it on the market, which can reduce their stress and encourage buyers’ interest.
“The seller has an opportunity to correct any defects before the buyer falls in love with the property, and everything proceeds calmly to a successful closing,” Englert said.
Yet this strategy has pros and cons.
“The good thing is that the seller can correct defects with contractors and provide the buyer with the confidence that he/she truly cares about giving them the property in good condition, which instills trust and confidence in the seller-buyer relationship,” Englert said. “The bad thing is that if the seller finds a defect, he/she must correct the defect or disclose it to the buyer, which could be a problem if the seller doesn’t have the money to correct the major defect.”
Keep in mind that the home inspection protects both seller and buyer.
“Having a thorough inspection prevents post-sale disputes,” Englert said. “Some buyers want the cheapest inspector, and some agents want the easiest inspector. But the best inspector will bring everything to light so it can be addressed properly before the closing and will guide everyone through the process.”
Inspecting the inspector
“The state of Indiana helped buyers immensely by moving several years ago to require that all home inspectors be licensed,” said Patrick Wilkins, Carpenter Realtors. “Several national organizations train and certify inspectors to meet stringent criteria. When choosing your inspector, you should look for one of these certifications to assure your inspector has met additional certification besides just being licensed. Your agent should have several for you to choose from – just ask.”
Several national organizations, including the American Society of Home Inspectors and the International Association of Certified Home Inspectors, train and certify inspectors to meet stringent criteria.
“I recommend an ASHI home inspector,” Wilkins said. “They are certified and licensed, which is important to the veracity of the inspection. I also like the inspector to understand the product they’re inspecting. Is it an historical property? This is special because the buyer needs to understand they will have asbestos, lead paint, etc. Is is a condo? The inspector should not assume all exterior maintenance is handled by the homeowners’ association.”
What should you expect in an inspector?
“The inspector should educate the buyer without scaring them,” said Amy Englert, Carpenter Realtors. “They should provide a clear report with plenty of digital images which will demonstrate visually any defects.”
When in doubt, follow the advice of real estate pros: Get a thorough home inspection and never choose an inspector based on a low price.