Home Inspection

Contents

1. A visual survey with a defined scope
2. The standards bodies
3. The systems on the list
4. How it differs from an appraisal
5. Timing and the inspection contingency
6. Choosing an independent inspector
7. Inspections before listing
8. Where to see it in person

Mike Kobeissi is a California real estate broker, while the home inspection a buyer receives is, in the end, an object: a written report. Bob Vila’s guide to the subject describes its usual contents as a checklist of the home’s main features, a summary statement on each major living area, and notes and photographs documenting problems.⁴ A thorough one goes further, estimating how many more years the roof, the structure, the paint, the finishes and each large piece of equipment are likely to serve, and it ends with recommended repairs and replacements.⁴ The same guide compares the inspection to a test drive, meant to find problems a buyer may want the seller to fix and any serious issue that could make the buyer reconsider the purchase.⁴ What the document records, and what it leaves out, is set by written standards.

A visual survey with a defined scope

An inspection is a look at what can be seen and operated, not a dismantling. The InterNACHI course on its Standards of Practice teaches inspectors to list the systems and components they are required to inspect, to distinguish those from what they are not required to inspect, and to define both a home inspection and a material defect; a full section of the standards is given to limitations, exceptions and exclusions.⁵ The limits show in practice. Dwell’s buying guide notes that an inspector’s electrical review will not cover absolutely everything, and that moisture in a basement can be hard to detect unless the visit falls during or just after heavy rain.³

The standards bodies

Two professional groups write the documents most inspectors follow. The American Society of Home Inspectors is a not for profit association that establishes standards for property inspections.⁴ Its own site presents a code of ethics meant to protect both the buyer and the inspector, a certification program, continuing education and resources on standards of practice and state rules.⁶ The International Association of Certified Home Inspectors, known as InterNACHI, publishes a parallel set of standards and a code of ethics that requires members to comply with the government licensing requirements wherever they work. Its course carries 38 hours of continuing education credit, with 4.5 hours of video, 13 quizzes and a 75 question final exam, and pairs the technical sections with a glossary and the code of ethics.⁵

Figure

What an inspection checklist covers

1. 01
   Grounds and exteriorGrading and drainage, standing water, foundation, siding, deck, garage and driveway.
2. 02
   Roof, windows and doorsShingles, gutters, flashing, vents, chimneys, decay, cracks and caulking.
3. 03
   AtticInsulation, ventilation and signs of structural damage.
4. 04
   Basement or crawl spaceMoisture, pests, foundation and insulation.
5. 05
   Interior roomsFloors, walls, ceilings, switches, outlets, insulation and fireplaces.
6. 06
   KitchenAppliances, exhaust fan, drainage, water flow and cabinets.
7. 07
   BathroomsToilet, tub and shower, tile, caulking, water pressure and leaks.
8. 08
   Major systemsHeating, cooling, wiring, service panels, plumbing and the water heater, with age and expected lifespan.

The systems on the list

The standards move through a house system by system. InterNACHI’s course covers the roof, the exterior, the basement, foundation, crawl space and structure, heating, cooling, plumbing, electrical, the fireplace, the attic with its insulation and ventilation, and finally doors, windows and the interior.⁵ Bob Vila’s checklist groups the same ground into eight areas and wants every big component dated and given a likely service life, with notes on airflow and ductwork in heating and cooling, wiring and breakers in the electrical panel, and leaks and the water heater in the plumbing.⁴ Dwell’s guide points to the places water tends to get in, such as outdoor patio drains, gutters at the eaves and basement walls, where rusty metal, damp foundation walls and crumbling grout are warning signs.³

How it differs from an appraisal

The Consumer Financial Protection Bureau treats the two as distinct steps that a borrower generally needs both of. The inspection is an assessment of the home’s physical condition for the buyer’s own protection; the appraisal is a form of valuation the lender generally requires, and the lender must send the buyer a copy promptly once it is complete.¹ Either one can surface needed repairs. The bureau notes that some loan programs require a property to meet specified standards, so an appraisal may be made subject to repairs, and that closing grows more complicated when either report finds major work.¹ The valuation side is covered under home appraisal.

Figure

Inspection and appraisal side by side

	Home inspection	Appraisal
Purpose	An assessment of the home's physical condition	A form of valuation the lender generally requires
Who it answers to	An independent inspector accountable to the buyer	The lender, who must send the buyer a copy promptly
What can follow	Negotiating repairs or a credit, or cancelling under an inspection contingency	A lender condition that major repairs be made before closing

Timing and the inspection contingency

The bureau’s advice is to book the inspection as soon as a home is chosen, so there is time to resolve problems and to arrange any further specialist inspections.¹ If the purchase contract is contingent on a satisfactory inspection, the buyer can cancel without penalty when the results disappoint. Short of that, the findings become a basis for negotiation over who makes or pays for repairs, or for a credit toward their cost. When major work such as a new roof is needed, a lender can require it before closing or ask for money set aside to pay for it right after.¹

Choosing an independent inspector

Independence is the quality the bureau stresses. An inspector paid by someone else, or not paid until closing, might underemphasize problems, so the buyer should hire one who is accountable to the buyer alone.¹ Licensing varies: in some areas inspectors need no license, and the bureau suggests asking for references from earlier customers and checking with the local Better Business Bureau and the state or county licensing authority.¹ Bob Vila’s guide suggests the buyer prepare too, reading the seller’s disclosures and records from the local building department and arriving with a list of questions.⁴

Inspections before listing

Sellers use the same tool earlier. A Wall Street Journal guide for sellers describes a pre listing inspection as optional but useful for understanding a property’s condition, deciding which repairs to make and setting a more accurate asking price, and notes that it can inform how material defects are disclosed. The repairs that turn up most often nationwide, it reports, are to HVAC equipment, appliances, roofing and wiring.² A person interviewed for the piece rejected the idea that the report itself adds value, describing its purpose instead as a smoother transaction with expectations set on both sides.² Photographs show finishes rather than systems, a difference explored under real estate photography and video.

Where to see it in person

The report reads best beside the house it describes. The bureau recommends attending the inspection, since being present makes the report easier to interpret and gives the buyer a chance to ask questions as the inspector works.¹ A second chance comes at the final walk through before closing. Dwell’s list of checks suggests running every appliance, testing each outlet with a phone charger, looking over the electrical panel for neat and labeled wiring, opening every window, door and shutter, running the taps and flushing the toilets, clearing outdoor drains and gutters, smelling the basement for damp and looking under each sink for stains.³ What any finding means for a particular purchase is best weighed with the buyer’s own inspector and advisors.