Tips from a Buyer’s Agent: What is an Inspection & Do I Need One?

First things first, what is an “inspection?” Well, when buying real estate, inspection refers to a general home evaluation to determine overall quality of the property. A jack-of-all-trades inspector (not having just one area of specialty) will spend hours examining a long list of items around the home & preparing a report for the prospective buyer with suggestions on further action if needed. A home inspection is one of the most essential steps to buying a property on the home buying checklist!

What do Inspections Check?

During a general home inspection the buyers inspector will typically evaluate the following areas:

Interior:

• Walls, ceilings, floors, doors, windows, railings, staircases, & fireplaces

Exterior:

• Foundation, frame, siding, porches, balconies, chimneys, walkways, and driveways

Unfinished Spaces:

• Insulation & ventilation in basements & attics and an examination of mold presence

Plumbing:

• Pipes, drains, pumps, and water heaters

Roof:

• Shingles, gutters, skylights, and vents for attic

Electric:

• Service panels, breakers, and fuses

Heating & Cooling:

• Equipment & ventilation

An important piece to understand about the inspection of all these areas is that a general inspection is visual only, meaning the inspector cannot break into the walls & see the quality of everything.

Why do You Need an Inspection?

The basic idea of the inspection process is for the inspector to find obvious issues which may be present throughout the home & recommend best practices for mitigation. Why is this important to the buyer? Well, most plainly it is your first line of defense against purchasing a home which may have latent & possibly expensive issues you were not anticipating. So, what do you do when your inspector finds a big issue in his report? This is where your realtors expertise will make a big impact. You go over your report with your real estate agent & determine which issues are absolute must fix for the sellers. Then, before your inspection objection deadline is met you submit your request for the seller to mitigate these issues. For example, if your inspector has found possible mold in the attic due to a lack of ventilation on the roof, you can request the seller bring in a mold specialist to test & follow all recommended steps to mitigate before closing. If the seller rejects your request (which does happen), then you need to be prepared to walk away from the deal.

Again, your realtor will help you decide which issues you should dial in on & which ones can be left out. This is a huge asset as many times the market will determine what the seller will be willing to fix. For example, in Denver it is currently a sellers’ market & they may be less open to large lists of seemingly minor repair requests. Not picking your battles can cost you the deal!

The inspection period is the point in the purchase contract where the buyer can back out of the deal for ANY reason. This is why I would NEVER recommend a buyer waive the inspection (even if it makes your offer more attractive or the house is brand new), because you may decide the house no longer fits your needs & the inspection termination deadline is your big chance to back out of the deal with no penalty.

How to Find an Inspector & How Much Will it Cost?

When you’re looking for an inspector make sure to ask your realtor if they have any companies they recommend. Your realtor has connections & experience with organizations & will be happy to suggest a few options for you. Although, I would make sure to do your own research as ultimately it will be your choice & part of your home buying costs. Which leads into the obvious next question: how much does an average general inspection cost? I would say on average you can expect to pay anywhere from $400 — $750 for your home inspection, however, I would be prepared to spend up to $1,000. I know, it’s a lot of money to spend just to find out whether or not you’re even going to buy a house. But, I promise you it’s a lot less money to spend then buying a house & finding out you need to put a new roof on it or the foundation is cracked & needs repair.

It is important to keep in mind the inspectors will often reference contacting specialists in other areas to more closely examine the home. For example, it is not uncommon to see something like “recommend licensed roofer be contacted to examine roof.” The inspector will have pulled permits for the roof & will know the general age, but is not a roofing expert & will suggest calling one in. If you decide any issue outlined in the general inspection report merits an additional inspection before the objection deadline you will be responsible for covering the cost.

The Bottom Line:

I hope this article gives you a better look at what the inspection process looks like & why it is important in the home buying checklist. Although the general inspection has some limitations in terms of detail it is the best & most cost effective way to get an overall view of the situation in the home you’re looking to purchase. This is also yet another reason why I would always suggest buyers find a real estate agent to represent them throughout their search. Your realtor has experience & expertise to help you evaluate your options & keep you from making a costly mistake!