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Home
Inspection
See Also
Why You Need A Home
Inspection.
Buying
a home is one of the most important purchases you will make
in your lifetime, so you should be sure that the home you
want to buy is in good condition. A home inspection is an
evaluation of a home’s condition by a trained expert.
During a home inspection, a qualified inspector takes an in-depth
and impartial look at the property you plan to buy. The inspector
will:
- Evaluate
the physical condition: the structure, construction and
mechanical systems.
- Identify
items that should be repaired or replaced.
- Estimate
the remaining useful life of the major systems (such as
electrical, plumbing, heating, air conditioning), equipment,
structure and finishes.
After
the inspection is complete, you will receive a written report
of the findings from the home inspector, usually within 1-2
days.
Home
Inspections Are Not Appraisals
A property
appraisal is a document that provides an estimate of a property’s
market value. Lenders require appraisals on properties prior
to loan approval to ensure that the mortgage loan amount is
not more than the value of the property. Appraisals are for
lenders; home inspections are for buyers.
FHA, which
is part of the U.S. Department of Housing and Urban Development
(HUD), requires lenders to obtain appraisals of properties
securing FHA-insured loans. FHA requires appraisals for three
reasons:
- To
estimate the market value of the property.
- To
make sure that the property meets FHA minimum property requirements/standards
(health and
- safety).
- To
make sure that the property is marketable.
- The
FHA appraisal process will note property deficiencies that
are readily observable and found not in compliance with
HUD’s minimum property requirements/standards (Handbook
4905.1 REV-1 and Handbook 4910.1). These deficiencies may
not be the same as those items noted in a home inspection
report.
The
Bottom Line: Spending Hundreds May Save Thousands
When you
make a written offer on a home, you should insist that the
contract state that the offer is contingent on a home inspection
conducted by a qualified inspector. You will have to pay for
the inspection yourself, but it could keep you from buying
a house that will cost you far more in repairs down the road.
If you are satisfied with the results of the inspection, then
your offer can proceed.
Finding
a Qualified Home Inspector
As the
homebuyer, it is your responsibility to carefully select a
qualified inspector and pay for the inspection.
The following
sources may help you find a qualified home inspector:
- State
regulatory authorities. Some states require licensing of
home inspectors.
- Professional
organizations. Professional organizations may require home
inspectors to pass tests and meet minimum qualifications
before becoming a member.
- Phone
book yellow pages. Look under “Building Inspection
Service” or “Home Inspection Service.”
- The
Internet. Search for “Building Inspection Service”
or “Home Inspection Service.”
- Your
real estate agent. Most real estate professionals have a
list of home inspectors they recommend.
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