Buyer’s Home Inspection

There are many steps in the home buying process, but few are as impactful as the home inspection.

By the time you put in an offer on a house, you may think you know all there is to know about the property. However, a professional home inspection can offer much-needed reassurance to home buyers by allowing them visibility into any potential problems before closing on the home. Keep reading to learn more about home inspections and how you can prepare for them with our home inspection checklist!

What Is A Home Inspection?

A home inspection is a noninvasive, visual examination of the physical structure and systems of a home. If an inspection unearths problems, you can negotiate with the seller to lower the home’s price or arrange for repairs before closing. You may even decide to cancel the sale if there’s a big problem with the home and you can’t negotiate a lower purchase price or otherwise reach an agreement with the seller.

A home inspection is different from a home appraisal. An appraisal is an estimate of how much your property is worth. Mortgage lenders use appraisals to make sure the home is worth the amount they’re lending. An appraiser doesn’t go over the fine details of the home, but rather looks at local property values and the home’s overall condition.

A home inspection usually takes place right after the seller accepts an offer from the buyer. After both parties sign the purchase agreement, the home goes into escrow. This process happens before the appraisal. It’s important to note, the home buyer is typically responsible for paying for the inspection because it protects them from purchasing a home with significant issues.

The Home Inspection Contingency

A home inspection contingency is a clause added to a real estate contract stating that the purchase is contingent on the results of the home inspection. This allows home buyers to cancel the sale or negotiate repairs based on the inspection results.

If you decide to add a home inspection contingency, you will have a specific time frame to schedule and conduct the inspection, as well as any potential follow-up evaluations. For example, if there is a plumbing issue and the inspector recommends consulting a plumber for a more in-depth look, the buyer is responsible for finding a plumber and getting the information they need to either move forward or withdraw from the sale before the period ends. Typically, buyers have about 1 – 2 weeks to complete this process.

If there are any deal-breaking issues on the inspection report, the home inspection contingency empowers buyers to pull out of the sale at no extra cost, making this one of the best ways to protect yourself against surprise costs after move-in.