Congratulations! The sellers accepted your offer, and you have opened escrow. The next step is to order a home inspection. Home inspections help buyers learn more about their house. Sellers are required to disclose information they know about the property (read more about Seller Disclosures), but it is the buyer’s responsibility to conduct their own investigations.
Remember the movie, The Money Pit? Tom Hanks and Shelley Long played unsuspecting home buyers, stuck with a delapidated house that required an expensive renovation. It’s a funny reminder to always get a home inspection!
Home Inspection vs. Loan Appraisal
Buyers usually pay for two services at the beginning of escrow: the loan appraisal, and the home inspection.
The appraisal tells your lender that the property holds enough value to justify the mortgage amount. Appraisals are simply opinions of value, based on comparable sales. Read my article about Home Appraisals.
The home inspection is a more detailed study of the house. The home inspection report helps you make your final decision to buy.
Why Get a Home Inspection?
Buyers should investigate a property as much as possible. A professional home inspector can alert you to issues that you may want to take up with the seller before buying. Often, buyers will request that the sellers fix issues before close of escrow. If you make a repair request to the seller, you can use the inspector’s report to justify your request.
How Much Does a Home Inspection Cost?
The cost of a home inspection depends on the size and type of the property. For an average home in San Diego County, home inspections usually range between $250-$500.
What Your Home Inspector Looks For
Home inspectors observe the components and systems of the house. They look for health and safety issues, construction defects, excessive wear, and anything else that warrants further investigation and/or repair.
A home inspection will usually include a visual inspection of the following:
- Building exterior, foundation, driveway, fences, patios
- Property grading and drainage
- Landscaping and sprinklers
- Roof (depending on type), gutters, downspouts
- Attic and insulation
- Fireplaces and chimneys
- Electrical system: panel, switches, outlets
- Heating and Air Conditioning: appliances, ducts, registers
- Plumbing system: pressure, supply lines, valves, waste lines, hose bibs, water heater, bath fixtures
- Appliances: sinks, dishwasher, refrigerator, oven, stove
- Garage door and garage door opener
Your home inspector may recommend that you complete further inspections. For example, if your inspector finds an older sewer system with potential tree roots nearby, he may recommend a sewer inspection to ensure that there are no blockages.
What a Home Inspection Will NOT Find
Home inspections are mostly VISUAL. The home inspector looks for obvious visible defects. He won’t be able to detect hidden defects, such as problems with underground drains and plumbing. Inspectors do not research appliance or product recalls. They don’t verify permits or code compliance, either. At the same time, your home inspector will point out these issues, if he sees them.
A standard home inspection does not include tests for radon, mold, asbestos, or lead. If your home inspector believes there may be any of these in the house, he will recommend further inspection and/or testing.
How to Choose a Home Inspector
Not all home inspectors are alike. In California, there are NO licensing requirements for home inspectors. Anyone can call themselves a home inspector.
Experienced real estate agents know who the good home inspectors are. Ask for a referral.
You can also choose a home inspector from the membership lists of the California Real Estate Inspection Association (CREIA) and the American Society of Home Inspectors (ASHI). They are the oldest and largest non-profit state and national inspector associations in the country. Their members must complete continuing education each year, and pass a written exam of property systems.
The Bottom Line
Every house requires maintenance. Things wear out and break down over time.
A home inspection can help you anticipate future repairs. When you buy a home, it’s your responsibility to complete your buyer investigations at the beginning of escrow. Hire a professional home inspector to help you make an informed purchase.
You can also read about the Cost to Buy A House and the Cost to Own a House. Once you are settled in your new home, check out these new homeowner tips.
Good luck! As always, contact me if you have any questions.
