Simply put, a home inspection is a search for material defects that would significantly effect the value, habitability, desirability, and safety of a dwelling. A home inspection can be performed for a buyer or a seller of a property, an insurance company, a mortgage lender, a lease management company, or anyone else who might have an interest in determining the condition of any given dwelling at any given time. However, the legal definition of a home inspection will vary from state to state, and even from country to country.
The majority of inspections are performed for those seeking to purchase a home. Purchasing a home, at least for most people, will in all probability be the single largest investment that they will make in their lifetimes. It is important then that they protect their investment by obtaining a thorough home inspection by a competent professional. A professional home inspection will leave the home buyer with a much clearer understanding of the condition and character of the property that they are about to purchase. If major repairs are needed, the home buyer may elect not to go through with the purchase and ask for a full refund of their deposit.
If you are already a home owner and are getting ready to sell your home, you may wish to have an inspection prior to placing your home on the market. This will give you a better understanding of conditions which may be discovered by the buyer's inspector, and an opportunity to make repairs that will put the house in better selling condition. By providing a potential buyer with a copy of the inspection report, it is less likely that the buyer will attempt to renegotiate the sales price.
The majority of inspections are performed for those seeking to purchase a home. Purchasing a home, at least for most people, will in all probability be the single largest investment that they will make in their lifetimes. It is important then that they protect their investment by obtaining a thorough home inspection by a competent professional. A professional home inspection will leave the home buyer with a much clearer understanding of the condition and character of the property that they are about to purchase. If major repairs are needed, the home buyer may elect not to go through with the purchase and ask for a full refund of their deposit.
If you are already a home owner and are getting ready to sell your home, you may wish to have an inspection prior to placing your home on the market. This will give you a better understanding of conditions which may be discovered by the buyer's inspector, and an opportunity to make repairs that will put the house in better selling condition. By providing a potential buyer with a copy of the inspection report, it is less likely that the buyer will attempt to renegotiate the sales price.
If you are purchasing a home, you should employ the services of a home inspector after your purchase offer has been accepted and the purchase agreement has been signed. However, you must first make certain that there is a clause in the agreement that makes your purchase obligation contingent upon the findings of a home inspection or any other inspections or investigations that will be necessary. This inspection clause should specify the terms to which both the buyer and seller are obligated. Most purchase contracts have an inspection contingency period of 17 days from acceptance, but you should double-check your purchase agreement or contact your real estate agent to verify this. In some markets, or with some bank-owned properties, the contingency period can be as short as 5 days. In any event, it is important that you do not delay in scheduling the home inspection so that you will have ample time to have all necessary inspections and reports completed, including any specialist inspections that might be recommended by your home inspector, and to negotiate any requests for repairs or credits.
Many states do not yet regulate home inspectors. Without regulation, anybody can become a home inspector by simply having a business card made up and taking an ad out in the yellow pages. However, regulation in itself is not a guarantee that a home inspector is competent enough to perform a home inspection. That is why it is important that you make sure your inspector has many years of full-time inspection experience and holds long-term membership in a recognized home inspector association, such as the [American Society of Home Inspectors [1]. There are dozens of home inspector associations and most are legitimate, but there are also bogus associations - some, even, that exist solely in cyberspace, where 'certification' can be purchased instantly online, or whose membership proclaims loudly (and falsely) that all other inspectors are "just looking around" - so it is a good idea to check out the inspectors credentials carefully and not be fooled by false or misleading claims or advertisements.
It is perhaps equally important that you make sure that your home inspector is insured, especially if the inspectors credentials are less than stellar, or if the inspector has less than 10 years experience. Should you have the misfortune of hiring an inspector without the necessary knowledge or experience needed to catch every major defect, you may find yourself unable to recover damages from the inspector if they do not carry an errors or omissions insurance policy. Most inspectors who are insured will gladly fax you proof of insurance. Beware the "cheap" home inspector, as they are most likely not insured.
Vetting your home inspector
Before hiring an inspector, it is critical that you select one that has many years of professional experience, who is insured, and who has undergone extensive education and training. Do not use an inspector simply because he or she was recommended to you by your real estate agent without first making sure that the inspector is well qualified and experienced.Many states do not yet regulate home inspectors. Without regulation, anybody can become a home inspector by simply having a business card made up and taking an ad out in the yellow pages. However, regulation in itself is not a guarantee that a home inspector is competent enough to perform a home inspection. That is why it is important that you make sure your inspector has many years of full-time inspection experience and holds long-term membership in a recognized home inspector association, such as the [American Society of Home Inspectors [1]. There are dozens of home inspector associations and most are legitimate, but there are also bogus associations - some, even, that exist solely in cyberspace, where 'certification' can be purchased instantly online, or whose membership proclaims loudly (and falsely) that all other inspectors are "just looking around" - so it is a good idea to check out the inspectors credentials carefully and not be fooled by false or misleading claims or advertisements.
It is perhaps equally important that you make sure that your home inspector is insured, especially if the inspectors credentials are less than stellar, or if the inspector has less than 10 years experience. Should you have the misfortune of hiring an inspector without the necessary knowledge or experience needed to catch every major defect, you may find yourself unable to recover damages from the inspector if they do not carry an errors or omissions insurance policy. Most inspectors who are insured will gladly fax you proof of insurance. Beware the "cheap" home inspector, as they are most likely not insured.
Avoiding unethical inspectors
To avoid any perceived conflict of interest, most states prohibit home inspectors from performing any corrective or repair work on the homes that they inspect. Most reputable inspectors will go one step further by not referring any repair work to others. You should make sure that your home inspector is not aligned or affiliated with any real estate companies or brokerage firms that might otherwise make them less objective than they ought to be.Many buyers are reluctant to use a local home inspector referred to them by a local real estate agent, especially if they have been burned in the past. For this reason, you may wish to employ the services of an inspector who is willing to travel outside of his or her 'normal' service area, thus guaranteeing you an impartial and unbiased home inspection.
Pricing a home inspection
1. Hire the most expensive home inspector you can find. You'll get more bang for your buck. A home inspector who charges very little usually knows very little.
2. Make sure that the inspector has at least 10 years of inspection experience. Experience makes all the difference - in any profession.
3. Make sure that the inspector is a member of a reputable home inspection association such as the American Society of Home Inspectors. Don't be fooled into using home inspectors who belong to second-rate home inspection associations.
4. In states that license home inspectors, do a background check on their license number.
5. Make sure that the inspector is insured. Ask to see proof of insurance. Insist on it.
6. Don't let somebody else choose your own inspector for you. This way you can be fairly certain who it is they are working for.
7. Make sure that you'll be receiving a narrative style home inspection report. Ask to see a sample report.
8. Get some names and phone numbers of those who have used the inspector you are considering hiring. Call them.
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*The American Society of Home Inspectors (ASHI) is America's oldest and leading non-profit professional association for independent home inspectors. Since its formation in 1976, ASHI's Standards of Practice have served as the home inspector's performance guideline, universally recognized and accepted by professional and government authorities alike. Copies of the Standards are available free from ASHI. ASHI's professional Code of Ethics prohibits Members from engaging in conflict of interest activities which might compromise their objectivity. This is the consumer's assurance that the inspector will not, for example, use the inspection to solicit or refer repair work. Pricing a home inspection
The inspection fee for a typical one-family house varies geographically, as does the cost of housing. Similarly, within a given area, the inspection fee may vary depending upon the size of the house, particular features of the house, its age, and possible additional services, such as inspection of a swimming pool, spa, or additional secondary structures. It is a good idea to check local prices on your own. Nationally, the average price for a home inspection (of an average sized house) is about $400.00.
The inspection report
Essentially there are three different types of home inspection reports: Checklist, narrative, and a narrative/checklist hybrid. Checklist-type reports certainly makes the job of creating a report much easier for the home inspector, but usually limits the amount of information that he or she can provide to his or her clients. A check in a box doesn't go very far. A narrative home inspection report is all narrative (devoid of check boxes), and is usually created using a home inspection software[2] program. These programs typically give the home inspector free reign to write as much - or as little - as is necessary. For a number of reasons, most established and experienced home inspectors prefer to issue a narrative style inspection report. In this way they can be sure to provide their clients with as much information as possible. Most home inspection software also allows the home inspector to include pictures, which is highly desirable considering that the verbiage used in most home inspection reports is not easily understood by the layperson.The bottom line
If you are about to buy or sell a home, you need to get it inspected first. This includes brand new homes as well. A brand new home can have more problems than an old one. Here are some good guidelines to follow when looking for a home inspector:1. Hire the most expensive home inspector you can find. You'll get more bang for your buck. A home inspector who charges very little usually knows very little.
2. Make sure that the inspector has at least 10 years of inspection experience. Experience makes all the difference - in any profession.
3. Make sure that the inspector is a member of a reputable home inspection association such as the American Society of Home Inspectors. Don't be fooled into using home inspectors who belong to second-rate home inspection associations.
4. In states that license home inspectors, do a background check on their license number.
5. Make sure that the inspector is insured. Ask to see proof of insurance. Insist on it.
6. Don't let somebody else choose your own inspector for you. This way you can be fairly certain who it is they are working for.
7. Make sure that you'll be receiving a narrative style home inspection report. Ask to see a sample report.
8. Get some names and phone numbers of those who have used the inspector you are considering hiring. Call them.
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In order to assist home inspectors in furthering their education, ASHI sponsors a number of technical seminars and workshops throughout the year, often in cooperation with one of its nearly 50 Chapters. ASHI also serves as a public interest group by providing accurate and helpful consumer information to home buyers on home purchasing and home maintenance.
References
- American Society of Home Inspectors
http://www.ashi.org - Home Inspection Software
Home Inspection Software
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