Home Inspections 101: What you need to know to be prepared

       Even if you’re not in real estate, you’ve probably heard of a horror story from a friend or family member who bought a home and ended up dumping money year after year into unexpected expenses and upkeep. The best way to avoid this is by doing the proper inspections BEFORE you close on the home so know exactly what you’re walking into. Below are some tips and tricks about how to navigate the process and save yourself a lot of headache and (most importantly) money.

Types of inspections

1. Home Inspection: this is the most common type of inspection. It is a general inspection of the property and inspectors will evaluate everything they can see, including but not limited to:

• Roof
• Windows
• Plumbing/Heating/HVAC systems
• Appliances
• Drains
• Electric
• Basement
• Yard

A typical home inspection can be as short as one hour for a smaller house and as long as 4+ hours for more sizable properties. Inspectors will generally test the systems to make sure everything works properly so you know what is and isn’t working while you’re there. Some examples are turning on all water in the house, running all appliances, running all heating/cooling systems, etc. 

*Something very important to note about home inspections is that the inspector does NOT scope any sewer/drainage lines. If you are buying an older home (or sometimes even a new one) and are concerned about the age or condition of the pipes, it is very much worth paying the extra few hundred dollars to get them scoped. Sewage lines generally do not need to be replaced often but it can be a very expensive fix when problems occur. Many areas have water service line and sewer line insurance that is offered through by companies (such as American Water Resources in the Southeastern PA region) that partner with the municipality and offer insurance to cover such problems at a reasonable price. In Philadelphia it only costs $9-$14 monthly to cover water and sewer line repairs.

2. Termite: although this is a natural part of a home inspection to visually check for termite damage, a formal termite inspection involves completing a separate certified report on the status of potential termites and any termite damage found. This inspection is a separate fee. It’s important to note that lenders will rely on this report and some types of loans (e.g. VA loans) require that it be done prior to closing.
3. Radon: this test measures the level of radon gas, a gas which naturally comes from the earth, in the property over a period of 48-72 hours. Radon gas can be harmful in high volumes and is most often highly concentrated in basements where air does not circulate as frequently. We suggest you do a Google search if you’re curious to know more. 

There are many other types of inspections you can do but these three are the basics.

Inspection day

There are a few things you can do to make the process easier for you and your inspector.

• Read the seller’s property disclosure and understand what problems in which the seller is aware. This gives you the ability to start doing your own research in advance and find out potential costs. There are often several different ways to fix problems; some may be temporary fixes and others may be more permanent but more costly.

• Bring a flashlight, notebook, tape measure and cell phone with a good quality camera. Don’t be afraid to take hundreds of photos (or a few short videos) if you need to. Be sure to get close-up photos of anything small such as a duct, pipe, connection, model number, etc. It’s best to take photos of anything you won’t recall after you leave the house. It will make your life much easier later on and save time when you call someone for an estimate and they ask you to send them a few pictures. When you are under contract for a home, you cannot access it whenever you’d like, even to allow for contractors to provide quotes. Most contractors do ask for pictures of the issue prior to sending someone out anyway. Read our article on how many times you can actually enter the home from the beginning of the transaction to the end. 

• Brainstorm a list of questions in advance. Inspectors are full of knowledge and the best way for you to get the most value for your money is by hitting them with every question during the home inspection, not afterwards. Keep in mind that home inspectors are generally not allowed to give recommendations or referrals to contractors so please don’t ask them if they know anyone that can fix the problems you find during the inspection.

• If you have any friends or family that are a part of your home buying process, make sure they are present so they can understand the issues that come up. This is also a great time to call in a favor from anyone you know that has construction experience– especially mechanical experience such as plumbing, electric and HVAC. Having them stop by for 10 or 15 minutes during your inspection can be very effective and a smart way to use your time so you don’t have to schedule another walkthrough in the house.

• Most importantly, don’t forget that EVERY property will have its own share of issues– even new construction. Don’t let your anxiety build too high while you’re learning about dozens of things that you didn’t know were wrong with the house. 

After the inspection

Congratulations, you made it through in one piece! These are some things to keep in mind for after the inspection, which involves reviewing the report and negotiating with the seller.

• The report is going to be longer than you think. 40-100 pages is not uncommon depending on how many pictures the inspector decides to upload.

• Be sure to lean on your realtor for their construction and negotiation knowledge. Everyone has their own way of negotiating– I personally always lean towards asking for money back instead of asking for the seller to fix items. When you ask sellers to do repairs, it leaves the opportunity for there to be more problems and negotiations on settlement day or when you do your final walkthrough. 

• Ask for the largest and most important items. The quickest way to end a transaction is to send over a list of 30 repairs for the seller to fix.

• YouTube is your friend and will calm you down in moments of high stress. You can literally learn about how to fix almost anything for half the cost by doing it yourself if you’re comfortable doing so, and that gives you more negotiation options. You can take on some of the smaller repairs and knock them out over a weekend or two and focus on getting money back for the big ones.
• Price quotes on the inspection reports are almost never accurate. The inspector’s job is to overestimate and assume the worst case scenario for everything, but it’s rarely the case that a repair will cost as much as the number on the report.