"What is a Home Inspection?"

Every homebuyer should have the opportunity to conduct a home inspection (oftentimes referred to as a “structural inspection”) on the home in which they have signed a purchase contract on.  Sometimes, a home inspection can be performed prior to a purchase contract signed and agreed to by the seller and buyer.   Most often, a home inspection occurs after the purchase contract has been signed and is structured as a "contingency" to the contract.  If you are considering buying a home, or, selling your current home, it may be helpful to learn about what a home inspection is and what it entails.

To begin with, a home inspection is simply a visual examination of the structure and the major systems of a house.  The cost of the inspection varies depending upon factors such as the size of the home or whether the structure is a one or multi-unit residence.  The cost of the inspection should be viewed in light of the investment you will be making in buying a home.  Having a home inspection will provide you with vast knowledge of the home, to say nothing of the sense of security you’ll receive.  Therefore, while not required, it is important you be present for the home inspection.

This inspection will include items such as a home’s heating and cooling system (as the temperature will allow), plumbing, electrical system including the electric panel, roof, attic, walls, ceilings, floors, windows, doors, kitchen appliances, basement and structural components.  Above and in-ground swimming pools would not be included in a structural or home inspection.  For homes that have either an above or in-ground swimming pool, the buyer would like to have inspected, that would be performed by a qualified professional.    

Typically, the home inspection is incorporated into the purchase and sale contract as a “contingency”.  This means, that the purchase of the home by the home buyer is contingent upon a satisfactory inspection of the home.  The standard purchase and sale contract widely used in the Capital Region of New York declares a threshold of $2000.00 before the contingency would be triggered.  The precise language found in the standard purchase and sale contract is:

“A [structural or home inspection is a] determination, by a New York State licensed home inspector, registered architect or licensed engineer, or a third party, or other qualified person, that the premises are free from any substantial structural, mechanical, electrical, plumbing, roof covering, water or sewer defects. The term substantial to refer to any individual repair which will reasonably cost over $2000.00 to correct.” 

In the circumstance where one or more items cross the $2000.00 threshold, the terms and conditions of the standard purchase and sale contract are put in motion.  The conditions state that the inspection must be completed by a certain date specified in the contract.  Further, notice must be given to identified parties by a certain date, together with supporting written documentation which serves as confirmation of the failure of the inspection or tests.  At the purchaser’s sole option, the cancelation of the purchase and sale contract may be deferred by a period of 10 days during which time a renegotiation might take place between the real estate professionals representing the buyer and seller.  This is often what happens.  In truth, few transactions fall through due to a major defect(s) being identified in a house.

If there are major defects identified in a home inspection, the home inspector will likely recommend other contacting professionals inspect the item(s) in question such as a roofer, mason or electrician, for example.

Other inspections buyers may have performed on the house they are buying include a pest inspection (sometimes referred as a “wood infestation inspection” or “termite inspection”), a water well inspection, a septic inspection and a swimming pool inspection. 

There are times in which the owner of a home that plans to sell in the future will have what’s called a “pre-sale inspection”.  If any defects are discovered during an inspection, the seller can then make the necessary repairs and/or improvements prior to marketing the home for sale.

A competent and qualified real estate professional can assist you in identifying a licensed home inspector you may wish to work with. 

If you have questions about a home inspection, please feel welcome to contact me.