In a seller’s market, some buyers will even consider forgoing the inspection to make their offer stand out. However, a home inspection is an important tool to protect yourself from making a bad investment.
Definition and Example of a Home Inspection
If you’ve recently found the home you want to buy, conducting a home inspection can feel like another hurdle to jump through. But an inspection is an important step in the homebuying process. During a home inspection, a certified inspector will evaluate the property for potential problems. That person will do an honest and thorough inspection of the property and report their findings and recommendations. Once the inspection is finished, you’ll receive a written report that you can review with your real estate agent. Depending on the inspector’s findings, you may decide to proceed with the sale as planned, ask for repairs or a lower price, or back out of the sale altogether.
How a Home Inspection Works
A home inspection is a visual inspection of a property to identify any potential problems. It usually takes between two to four hours to complete, depending on the size of the house. Once the inspection is over, the inspector sends a report summarizing their findings and recommendations. In most cases, the homebuyer is responsible for finding and scheduling a home inspection. The exact cost will vary depending on the size and condition of the house but will typically range between $300-$500. When inspection day arrives, the inspector will start by evaluating the home’s structure and foundation. They’ll look for problems with the walls, floor framing, and window alignment. They’ll check to see that the electrical system is up to code and the heating and cooling systems operate efficiently. The inspector will also check to see that the fire alarms, carbon monoxide monitors, and sprinklers are working correctly. They’ll also assess the insulation in the attic and look for signs of water damage in the basement. When the inspection is finished, you’ll receive a written report of the inspector’s findings. This report will give you a greater understanding of the current condition of the home.
Home Inspection vs. Home Appraisal
Like a home inspection, an appraisal is an important step you’ll need to take when you’re buying a home. But while a home inspection is usually done at the buyer’s discretion, your lender will require an appraisal. While a home inspection looks at the current condition of the home, an appraisal determines the property’s value. This ensures that you don’t pay more for the house than its fair market value. It also protects the lender because the value of the home is used as collateral for the loan. During an appraisal, a licensed appraiser will assess the property and take note of its condition and location. They’ll compare the house to similar homes in that area to determine the fair market value. Once the appraisal is complete, you’ll receive a written report of the findings. If the appraisal comes in low, it could jeopardize your ability to buy the house. In this case, you can either contest the appraiser’s findings or agree to pay the difference in financing.
