What is a home inspection
A home inspection is a limited, non-invasive examination of the condition of a home. Often in connection with the sale of that home. Home inspections are usually conducted by a home inspector who has the training and certifications to perform such inspections. The inspector prepares and delivers to the client a written report of findings. The client then uses the knowledge gained to make informed decisions about their pending real estate purchase. The home inspector describes the condition of the home at the time of inspection. The report does not guarantee future condition, efficiency, or life expectancy of systems or components.
A home inspection is an examination of a property’s safety and current condition, from its foundation to its roof and including its various systems (electrical, plumbing, and more).A buyer arranges and pays for a home inspection and—depending on its findings—may choose to move on to closing, renegotiate the sale price, request repairs, or cancel the sales contract. A home inspection is not the same as a home appraisal, which is required and scheduled by a lender to determine the value of a property for which a buyer is seeking a mortgage. When valuing real estate for investment purposes, a home inspection is one of a number of variables considered.
How a Home Inspection Works
Potential home buyers often hire home inspectors to research a property and provide them with a written report that details the property’s condition. This includes an assessment of necessary or recommended repairs, maintenance concerns, and any other potentially costly issues. The home inspector will assess the physical structure of the home, from the foundation to the roof, as well as the home’s systems, making sure that the home is up to code.
A home inspection can tell a homebuyer a lot about a newly constructed or existing house that can save them money and aggravation. It can identify needed repairs or builder oversights and upkeep requirements. For sellers, having an inspection done before putting their home on the market can afford them the chance to make structural repairs or upgrade/replace systems that may increase the likelihood of a sale.
The inspection contingency
Typically, a home inspection is done after a sales contract or purchase agreement between a buyer and a seller has been signed. For this reason, it’s important that the contract include an inspection contingency (also known as a “due diligence” contingency), which allows a buyer time to find an inspector, schedule and attend (if so desired) an inspection, receive the inspector’s report, and decide how to proceed based on the information it includes.
Depending on the report’s assessment—which can include everything from material defects that may negatively impact a home’s value to cosmetic defects, which don’t affect safety or functionality—a buyer may decide to proceed with the sale, schedule additional inspections, renegotiate the sale price with the homeowner (if there are serious issues), ask that certain repairs be made, or cancel the contract. If the buyer requests major repairs, they may also ask for a reinspection with the original inspector to verify that the original problem identified has been remedied. Are your customers raving about you on social media? Share their great stories to help turn potential customers into loyal ones.