Is a home inspection really worth it? When you hire a home inspector you hire a third party to view the property objectively with no vested interest in the transaction. A professional home inspector will be able to point out any major issues with the property which can cost you thousands in the long run.
Home inspector will look at the exterior and interior of the home including but not limited to electrical, plumbing, septic, roofing, HVAC and foundation.
However, in a red-hot real estate market, with bidding wars and offers well over the asking price, sellers are asking buyers to waive home inspections. Since 2020 when the market picked up until February 2022 the seller’s market took over and people simply couldn’t buy a house with a home inspection condition. There was always somebody right behind them, often many other home buyers. Buyers who were willing to buy the house without having a home inspection.
In the buyers market, a regular offer will be conditional on the home inspection and you will have 2 to 5 business days for it.
The home inspection condition/contingency.
Home inspection condition protects the buyer should their inspection reveal any serious deficiencies like mould, septic issue, water quality of faulty wiring.
Depending on the size of the home, the cost of home inspection for a home under 2000 sq feet is around $600. There will be extra cost to check wells, swimming pools, and additional buildings.
I always recommend to my buyers to attend their home inspection. During inspection, inspector will tell you about routine maintenance that should be performed. This is crucial, especially for first time homebuyers. Winterising pipes, performing furnace maintenance along with other maintenance play a big role in home maintenance. After inspection is done, your inspector will supply you with a report that offers a deeper understanding of whether the home has been well-maintained or needs serious repairs.
Keep in mind that home inspectors are trained to find important issues. Also, inspector will only report what he can see, not what is inside the walls or behind the heavy furniture. They will not go into the costs of fixing issues found and you would need to hire a contractor or an expert (plumber, electrician, etc) to give you an estimate for that.
With home inspection condition, If your inspection reveals major issues you will have some options.
Depending on your purchase agreement, if the property is in too much distress you will be able to back out of the contract without the penalty.
The second option is to ask the seller to fix the issues before the completion date.
Lastly, reduction of the purchase price reflecting the repairs can be considered.
Whenever possible I always recommend including home inspection condition in the offer. Good luck with your house home purchase!