Blogs
Know what to expect from an inspection
If you're buying a home, it’s important to understand what inspections cover, along with who pays for what. Here’s a quick rundown.
A standard pre-purchase inspection covers a home's major mechanical systems, i.e., electrical, plumbing, heating, and cooling, and its construction from roof to foundation, exterior to interior. Overall inspections do not cover soil, pools, wells, septic systems, building code violations or environmental hazards such as lead.
If you are a buyer, include an inspection contingency in your purchase contract; it should allow you up to two weeks to conduct an overall inspection plus any specialized inspections you (or your lender) require. Most inspections cost several hundred dollars.
Specialized inspections usually involve an expert and can cost more. Remember, repairs or remedies are negotiable; they also can derail a deal.
|
Type of inspection |
What it covers |
Cost/who pays |
Remedies |
|
Standard pre-purchase |
Overall home construction and condition, including major mechanical systems |
$200-$500; buyer |
Conduct further specialized inspections; repair |
|
Wood damage |
All wood portions of home (interior and exterior) |
$75-$200; negotiable |
Repair or replace damaged wood; treat for wood-destroying insects or organisms |
|
Lead |
Presence of lead in paint, plumbing or other areas |
$400 for basic survey; negotiable |
Repair or replace affected areas |
|
Radon |
Presence of naturally occurring radioactive gas |
$150 for basic survey; negotiable |
Seal foundation cracks, install a sump pump; ventilate basement or crawl space. |
|
Environmental hazards |
Presence of any substance in building material, soil, water or air that poses a health risk |
Price varies; negotiable |
Remove hazardous material, such as asbestos, or source of danger, such as a buried oil tank. |
|
Soil |
Condition of soil under and around foundation and retaining walls |
$300 to $2,000; negotiable |
Repair or treat problem |
Understand defects and your rights before you inspect the house.
You need to understand defects and disclosures before you evaluate the physical condition of the home you want to buy and decide how much you want to pay for it. If you are a seller, you may want to order a pre-sale inspection to help you prepare your house for sale; be aware that you will have to disclose any significant defect that comes up in the report.
Defect
Pre-purchase home inspections target two kinds of defects: the kind you can see (a patent defect) and the kind you can't see (a latent defect).
Patent defects are easy to spot: for example, water stains, ceiling cracks, sticky windows or sagging floors are patent defects. Latent defects are more elusive because they may be hidden: for example, faulty plumbing, asbestos ceilings or dry rot.
- Some defects are trivial; others are more serious. An inspection can help you decide whether you need to act on the defects you find. Whether you are a buyer or a seller, be sure to work out how all defects will be repaired or paid for during contract negotiations.
Disclosure
Disclosure is when a seller or real estate agent reveals a material fact about the physical condition of a property to a buyer.
A material fact is any information that can affect the price of the home or a buyer's decision to purchase it at all, such as spring flooding in the basement or a highway project that will cut through the neighborhood.
Disclosure laws vary by state and range from voluntary seller disclosure to mandatory seller disclosure questionnaires. Some real estate companies also require seller disclosures, and agents can be held legally responsible for not disclosing a vital piece of information about a prope
