What a Home Inspection Can Really Tell You
You find the house. It checks the boxes. You are excitedly preparing an offer.
Your agent recommends conditions, specifically: Financing, Home Inspection, and Home Insurance.
You discussed this as an overview when you first signed on with your agent, but it was a lot of information and kind of a blur. So, what is the purpose of a home inspection?
THE HOME INSPECTION
First and foremost, a home inspection is about learning the inner workings of your home allowing you to get an understanding of the structure from the inside out and the outside in. Let me be clear. It is not intended to be a reason to walk away from your purchase.
Any major concern should already have been disclosed by the seller. They, along with their agent, have a legal obligation to disclose anything not easily seen with the naked eye, known as a “latent defect.” One of the most common in Oxford County, in my experience, is water in the basement. A disclosure might look something like:
“Basement experiences water during heavy rainfall or quick thaws in spring.”
The written home inspection is a detailed report. I liken it to a traffic signal. Each item is associated with a timeline and, when known and if applicable, a cost:
Remedies
Red | Immediate, as soon as possible, and anything with less than a 1-year timeline. |
Amber | Within 1–5 years |
Green | Annual, regular maintenance, or when/if remodeling. |
Remedy actions are typically: Upgrade, Replace, Improve, Service, Monitor, Repair, Remove, Provide/Install, or On-going.
When you get your report, it’s your responsibility to review it and identify any areas of major concern or major cost. From there, determine whether it can be remedied and, if so, what the next step would be.
Typically, this is when your agent opens a discussion with the seller’s agent. Options include having the seller fix the issue at their expense, or negotiating a reduction in purchase price so you, as the buyer, can take care of it after closing. The goal is to resolve the issue to the satisfaction of both parties.
It should be the exception, not the rule, to walk away from a purchase because of something found in the home inspection. However, the condition is structured in a way that the option is still yours if the issue cannot be resolved to your satisfaction.
Of Note: if a latent defect is found during a buyer’s home inspection, the seller will be made aware of it and it must then be disclosed to future buyers. An example of this might be vermiculite in the attic insulation.
Insurance and a Home Inspection
Insurance companies are requiring more information when setting up a home insurance policy, and most, if not all, of what they need is laid out in the home inspection report. This is helpful to you because it’s coming from an informed and reliable source.
If you are obtaining a mortgage for your purchase, your lender requires a document called an Insurance Binder from the insurance company before releasing funds. They need to know their investment is protected.
A Good Investment for any Home Buyer
Whether a seasoned homeowner or a first-time buyer, a home inspection and subsequent report can be a wealth of information — such as learning how to direct water away from your home through grading, eavestroughs, and downspouts, to getting a service and maintenance schedule prepared specifically for your new home.
The key to protecting one of your biggest investments is to stay on top of regular maintenance for your entire home. Think of the report as your personal education plan and budgeting tool for your first few years.
Have questions about what to expect from your own home inspection? I’m always happy to walk you through it or refer you to a trusted local home inspector. Reach out any time.