When a buyer is purchasing a home, there are potentially some upfront costs as the buyer performs due diligence in investigating the home and property. A home inspection is one of the most common. Some buyers may be hesitant to pay for a home inspection because of the $400 to $500 cost. A home inspection contingency is designed to give the buyer a set number of days to take a closer look at the home, inside and out. If they don’t like what they see, they can terminate the transaction and walk away unscathed, except for the cost of the inspection. Some buyers would rather take the risk of discovering defects after closing than spend the money on an inspection.
A home inspection gives the buyer more detailed information about the overall condition of the property than could ever be obtained during a pre-offer walkthrough, or from the seller’s written disclosures. A qualified home inspector takes an in-depth, unbiased look at the potential home in order to evaluate the condition of the structure and systems, as well as identify items that need to be repaired or replaced. They also estimate the remaining useful life of the major systems, equipment, structure, and finishes. Often, when a home inspector discovers a significant issue with a major system in the home, they will recommend having another professional inspect it further, such as a roofer, plumber, or electrician. There may be additional costs associated with having these professionals perform further inspections. They will most likely be able to provide an estimate of the repair costs, and this information can be useful in negotiating with the seller or deciding whether to continue with the purchase.
While most inspectors focus on structural and system-related issues, many are also licensed to test for radon, evaluate the flow rate and water quality of a well, and inspect for pests such as termites. It is the buyer’s responsibility to be informed, since that is the best protection available when purchasing real estate. Buyers have the right to carefully examine a potential new home to ensure that what they are purchasing is satisfactory.
Appraisals are different from home inspections. Appraisals are conducted for lenders to calculate the approximate value of the collateral, while home inspections are intended for buyers to evaluate the actual condition and usability of the property. Buyers sometimes mistakenly assume that the appraiser performs the same task as a home inspector, when in reality, they serve very different roles.