Understanding Home Inspections:
How They Work and Why They Matter
Buying a home is one of the biggest financial decisions you’ll ever make. Whether you’re a first-time buyer or a seasoned homeowner, one essential step in the process is getting a home inspection. A home inspection can reveal important details about the property and help you make an informed decision. Let’s break down how a home inspection works and why it’s crucial.
What is a Home Inspection?
A home inspection is a thorough evaluation of a home’s condition, conducted by a licensed professional home inspector. The inspector assesses the property’s major systems and structural components, looking for defects or issues that may need attention.
What Does a Home Inspection Cover?
A typical home inspection includes the following areas:
- Foundation and Structural Integrity: Inspects for cracks, shifting, or other foundation issues.
- Roof and Attic: Evaluation of the roof’s condition, gutters, and ventilation.
- Plumbing: Checks for leaks, water pressure, and functionality of fixtures.
- Electrical Systems: Ensures wiring, outlets, and the main panel meet safety standards.
- HVAC Systems: Assesses the heating, ventilation, and air conditioning systems.
- Exterior Features: Reviews siding, windows, doors, and landscaping for potential problems.
- Interior Features: Examines walls, ceilings, floors, and insulation.
The inspector provides a detailed report highlighting any concerns, from minor maintenance issues to significant repairs.
Why is a Home Inspection Important?
Protect Your Investment with Perfect Timing
When Should You Schedule a Home Inspection?
Home inspections typically occur after an offer is accepted but before closing. It’s a contingency in most purchase contracts, meaning the buyer has the right to withdraw or renegotiate based on the inspection results.
As locating and scheduling a good home inspector may take some time, as well as the fact that you will need a few days to review the report and possibly call in other experts for additional items to be checked, you should always allow yourself at least 15 days for a “contingency period” (time period where you may cancel and get your money back without penalty) in your purchase offer.
When Should You Schedule a Home Inspection?
Home inspections typically occur after an offer is accepted but before closing. It’s a contingency in most purchase contracts, meaning the buyer has the right to withdraw or renegotiate based on the inspection results.
As locating and scheduling a good home inspector may take some time, as well as the fact that you will need a few days to review the report and possibly call in other experts for additional items to be checked, you should always allow yourself at least 15 days for a “contingency period” (time period where you may cancel and get your money back without penalty) in your purchase offer.
Your Guide to Finding the Right Expert
How to choose a home inspector.
Select a certified, experienced inspector to ensure a thorough evaluation. Look for inspectors with:
- Proper licensing
- Good reviews or references
- Membership in professional associations, such as the American Society of Home Inspectors (ASHI) or InterNACHI
- Search and find your own home inspector – do not take recommendations from anyone involved in your transaction. (agent, loan officer, title rep, escrow officer, etc.) See Important notes below! (jump link)
How to choose a home inspector.
Select a certified, experienced inspector to ensure a thorough evaluation. Look for inspectors with:
- Proper licensing
- Good reviews or references
- Membership in professional associations, such as the American Society of Home Inspectors (ASHI) or InterNACHI
- Search and find your own home inspector – do not take recommendations from anyone involved in your transaction. (agent, loan officer, title rep, escrow officer, etc.) See Important notes below! (jump link)
Making Informed Decisions with Your Results
What happens after the inspection?
After receiving the inspection report, review it carefully. Depending on the findings, you can:
- Request repairs or a credit from the seller.
- Renegotiate the purchase price.
- Proceed with the sale as-is, understanding the risks.
- Walk away if the issues are deal-breakers.
What happens after the inspection?
After receiving the inspection report, review it carefully. Depending on the findings, you can:
- Request repairs or a credit from the seller.
- Renegotiate the purchase price.
- Proceed with the sale as-is, understanding the risks.
- Walk away if the issues are deal-breakers.
Additional Inspections you may wish:
Although most home inspectors are quite good at what they do, remember they are there to inspect the entire home and all of its components. They tend to know a good deal about all aspects of a house, but they are not specific experts.
They can only tell you if an item is working, how old it is, and what its expected life is.
For expensive items such as the HVAC unit (air conditioning and heating), they cannot tell you when it was last serviced, if the coolant levels are correct, or if it is leaking or on the verge of extinction.
The same goes for roofs. A home inspector can give you a visual inspection of the roof and estimate its age and life remaining but still may not uncover hidden issues or damage.
In many cases we recommend not only a home inspection but that you also call an HVAC company to check the systems and pressures and possibly a roofer for a more in-depth evaluation.
Roofs are a major cost
In many areas of the country, the roof’s age can drastically affect how much your homeowner’s insurance will cost and, in some cases, make it impossible to obtain insurance without replacing the roof.
In some states, insurance companies will not insure an asphalt shingle roof if it is more than ten years old (and a tile roof to be no older than 20 years) – So watch this and know that if the roof is close to that age – that you will likely need to replace it soon and roofs are very costly.
Another reason we recommend a separate roof inspection is so that you know how long before you will have to replace the roof and what it is going to cost when you do so that you can plan and budget accordingly.
The same goes for a separate HVAC inspection, a typical HVAC replacement for a single unit in a home can be over $12,000. You need to know its condition and remaining life so that you can plan for the future expense (depending on the area of the country that you live in HVACs only have a typical life of 7- 10 years. If the unit is already 6 years old when you buy the home – you may be looking at a major expense very soon.
Additional Inspections you may wish:
Although most home inspectors are quite good at what they do, remember they are there to inspect the entire home and all of its components. They tend to know a good deal about all aspects of a house, but they are not specific experts.
They can only tell you if an item is working, how old it is, and what its expected life is.
For expensive items such as the HVAC unit (air conditioning and heating), they cannot tell you when it was last serviced, if the coolant levels are correct, or if it is leaking or on the verge of extinction.
The same goes for roofs. A home inspector can give you a visual inspection of the roof and estimate its age and life remaining but still may not uncover hidden issues or damage.
In many cases we recommend not only a home inspection but that you also call an HVAC company to check the systems and pressures and possibly a roofer for a more in-depth evaluation.
Roofs are a major cost
In many areas of the country, the roof’s age can drastically affect how much your homeowner’s insurance will cost and, in some cases, make it impossible to obtain insurance without replacing the roof.
In some states, insurance companies will not insure an asphalt shingle roof if it is more than ten years old (and a tile roof to be no older than 20 years) – So watch this and know that if the roof is close to that age – that you will likely need to replace it soon and roofs are very costly.
Another reason we recommend a separate roof inspection is so that you know how long before you will have to replace the roof and what it is going to cost when you do so that you can plan and budget accordingly.
The same goes for a separate HVAC inspection, a typical HVAC replacement for a single unit in a home can be over $12,000. You need to know its condition and remaining life so that you can plan for the future expense (depending on the area of the country that you live in HVACs only have a typical life of 7- 10 years. If the unit is already 6 years old when you buy the home – you may be looking at a major expense very soon.
Important Warning.
Be wary of getting a referral for a home inspector from your agent (or anyone else involved in your real estate transaction).
Remember as we have taught you here at House Karma – everyone you deal with is acting in their own self-interest and looking for their commission /fee. None of which they get if you do not go through with the sale. In other words, they are all in conflict of interest.
For many agents – their idea of a “good” home inspector is one that doesn’t find any problems that may kill the deal and cost them their commission.
We strongly recommend you research and hire an independent home inspector on your own who does not have any relationship with your agent or anyone else involved in your transaction.
We have provided a link to a national database of home inspectors with reviews so you can find an unbiased inspector to represent YOUR interests.
Also – rates can be negotiable, so shop around and compare rates from a few inspectors with good reviews.
Will you need a “Four Point”?
A Four-Point Inspection is a specific type of home inspection that evaluates four critical systems in a home. It’s commonly required for older homes, especially when applying for homeowner’s insurance in many states like Florida. This inspection helps insurance companies assess the risk of insuring a property.
and remaining lifespan. Checks for leaks, damage, or missing shingles.
(e.g., aluminum, knob-and-tube). Checks for outdated or unsafe panels,
breakers, or electrical hazards.
or materials prone to failure, like polybutylene pipes
of the HVAC system. Ensures the system is operational and safe.
Why is a Four-Point Inspection Needed?
Insurance companies use the Four-Point Inspection to determine if the home is insurable or if updates are required before issuing or renewing a policy. Older homes are often seen as higher risk, so this inspection ensures that the home’s key systems are functional and meet safety standards.
Who Pays for a Four-Point Inspection?
The buyer or homeowner usually covers the cost. It’s less comprehensive than a full home inspection, so it’s typically more affordable, costing around $100 to $200. Many home inspectors will include the “Four Point” for free when they are hired to do a full inspection. Always ask!
Difference Between a Four-Point Inspection and a Full Home Inspection
- Four-Point Inspection: Limited to the four key systems for insurance purposes.
- Full Home Inspection: Covers the entire property, including structural components, appliances, and more.
When Do You Need a Four-Point Inspection?
- Buying an older home (usually 25+ years old).
- Applying for or renewing homeowner’s insurance, especially in areas prone to hurricanes or other risks.
Bottom Line
A Four-Point Inspection is a targeted review that ensures older homes are safe and insurable. It’s a straightforward process but essential for securing insurance coverage and understanding the condition of a property’s most critical systems.
Conclusion
A home inspection is a small upfront cost that can save you thousands in the long run. It’s your chance to uncover potential problems, negotiate better terms, and gain peace of mind about your new home. Skipping this step could lead to unexpected surprises and financial misery later. For any home buyer, a home inspection is not just an option—it’s a necessity.
Conclusion
A home inspection is a small upfront cost that can save you thousands in the long run. It’s your chance to uncover potential problems, negotiate better terms, and gain peace of mind about your new home. Skipping this step could lead to unexpected surprises and financial misery later. For any home buyer, a home inspection is not just an option—it’s a necessity.