In 2021, 6.12 million homes changed hands across the United States. That's the highest number since 2006 and shows that after the worst of the pandemic, Americans were keen to move to pastures new.
Hopefully, millions of those people settled into their new lives in their new homes with few regrets. They're probably the ones who took the time to carry out a detailed property inspection before making their final offer. Those who skipped the inspection are more likely to run into problems that cost them big time in the long run.
But what exactly is a property inspection? Is it something you can do yourself, or do you always need a professional? Explore these questions and more in our property inspection guide.
What Is a Property Inspection?
If you've ever lived in a rental, you'll likely have been subject to regular property inspections. But if you're buying a house, the property inspection process is a lot more thorough. And with good reason!
A property inspection is there to ensure that the house you've fallen in love with also makes good financial sense. It can reveal flaws that you need to budget for. You don't want to find yourself auditioning for, "Why the heck did I buy this house?" six months down the line.
In reality, if you're really serious about a property, there are likely to be two parts to your property inspection:
- Personal inspection - you look around the property before making an initial offer with a home inspection contingency
- Home inspection by a licensed inspector - this will allow you to negotiate with the seller
Why Conduct Two Property Inspections?
You may wonder, if you're going to need a professional home inspection, what's the point of doing one yourself? The advantage of carrying out a personal property inspection is that it can reveal obvious faults and red flags. That can stop you from wasting time pursuing an offer that's going to fall through anyway.
For example, a quick look under the carpets may reveal rotten floors. Do you have the heart, or the budget, to replace them all?
If your inspection doesn't show up any red flags, you can make an offer subject to an inspection. Doing this gives you wiggle room. You've got the attention of the vendor and the home inspection can give you leverage to reduce the price.
Understanding Disclosures
When selling a property, most states require sellers to disclose any serious problems with the property. Exact disclosure requirements vary from state to state. There are legal loopholes that sellers can use to avoid making full disclosures.
Some disclosures states require include:
- Neighborhood nuisance disclosures
- HOA membership and its requirements
- Deaths in the home that occurred due to violence or issues with the property
- Water damage
- Pest damage, such as termites
It's important to get familiar with the disclosures that your state requires - and those it doesn't. Don't assume that because the seller has not disclosed a problem, for instance, with termites that the house does not have one. It may just be that the state doesn't require them to disclose it.
How to Conduct a Property Inspection
Before you begin, understanding property inspections and their purpose is key.
Your goal is to decide whether you want to make an offer or not. Nothing makes people fall out of love with a home faster than expensive structural repairs or having to replace major systems.
What Are Property Inspection Red Flags?
Structural problems and major system issues are the biggest red flags to consider. Cosmetic problems can wait, but structural issues can't. If you buy a home with subsidence or dodgy electricals, you need to get them sorted before you move in.
The ultimate goal is to find a house at a great price that only needs non-structural renovations. You'll often hear it said that a house has "good bones". What this means is:
- Structurally sound from foundation to roof
- Electrical, plumbing, and HVAC are in good working order
- And good flow between rooms, or easy to create one with minor modifications
- Good natural light
- Attractive views
- Cosmetic issues that can be easily rectified (e.g. new bathroom/kitchen)
This doesn't mean that all structural or major system issues are necessarily deal breakers. But identifying them at this stage will help you to decide whether the house is worth pursuing or it's time to walk away.
Create an Inspection Checklist
Begin by creating a property inspection checklist. This will vary slightly from home to home, depending on the features. For example, you may need to tweak it by adding features such as pools, carports, accessory dwelling units, and other non-standard facilities.
The major components of an exterior inspection are:
- Foundation
- Septic tank
- Perimeter check for standing water
- Check access to plumbing through the crawl space
- Siding
- Brickwork
- Paintwork
- Roof - visual check from outside and inside
- Gutters
- Windows
- Garage
As a layperson, you may only be able to spot the obvious signs, such as bowing walls, sagging roofs, and a leaking septic tank. It's a good idea to do some research on more subtle signs that the home has serious issues. Externally, these could include:
- Visible cracks in brickwork
- Doors or windows that don't sit square in their frames
- Gap opening between exterior walls and earth around the house
An interior inspection should include:
- Plumbing in the bathroom, kitchen, and utility has no obvious defects
- HVAC system
- Appliances
- Water heater
- Floors
- Ceilings
- Internal walls
- Electrical system
- Basement - check for moisture and functioning sump pump
Internally, you should also look out for cracks in the walls. This can indicate that there are structural issues or foundation problems going on. Sloping floors and cracked tiles are further indications that things are moving.
Also, take note of how the house smells. The presence of lots of mold means that there's a moisture problem because mold needs water to thrive. There is either a water leak or water is getting in through cracks in the walls or roof.
Get Familiar with Signs of Termite Infestation
Few words strike more fear in the hearts of homeowners than termites.
At its worst, termite damage can mean a complete rebuild. But if it's caught early, it's possible to get the infestation under control and repair the damaged parts.
One of our top property inspection tips is to get familiar with these signs:
- Mud tubes on the outside of the foundation walls
- Piles of shed wings around the exterior of the property
- Wood that sounds hollow when you tap it
- Piles of sawdust-like droppings close to wooden structural elements
If you have the slightest suspicion that there are termites in the property, talk to the owner. The problem may have already been treated or they may be in the process of doing so. Whatever they tell you, make sure to get an independent pest control expert to come in and assess the situation and the cost of remediation.
Ask to See Maintenance Records
In some cases, you may find yourself asking to see something that doesn't exist. But records of HVAC maintenance and servicing, electrical and plumbing inspections, and roof inspections can go a long way toward setting your mind at ease.
If systems like the AC, furnace, and gas plumbing haven't been inspected or serviced for a long time, that could be a reg flag. Those systems are costly to repair or replace. The average lifespan of a furnace is around 25 years - longer if it's been well maintained.
A central AC unit should last up to 20 years, if it's been well maintained. Find out when the furnace and AC were fitted to see if they'll need to be replaced in the next few years. If the HVAC system hasn't been well maintained, it's also likely to be expensive to run.
The Value of a Professional Home Inspection
A personal home inspection is a great starting point. If you're an experienced contractor or even a super keen and knowledgeable DIYer, you may feel that's all you need. Of course, the choice is yours, but real estate experts agree that a professional home inspection is well worth the expense.
A licensed home inspector is qualified and trained to inspect:
- All major home systems
- The structure of the home
You can also pay for more extensive inspections that will examine the interior condition of the property. They'll look for signs of asbestos, toxic mold, and other issues not normally identified on a standard inspection.
Your home inspector will also give you an idea of the extent of the repairs needed. You can use this to seek quotes from contractors or negotiate with the seller to either perform the repairs or reduce the price.
A professional home inspection puts you in a strong position to protect yourself financially. It can reduce the risk involved with any home purchase.
The Undeniable Benefits of a Property Inspection
Whether you conduct it yourself or leave it to a professional, a property inspection can give you peace of mind. The property inspection advice above can also help you avoid making a huge financial mistake you'll regret for years to come.
Are you ready to start searching for the home of your dreams? At Hommati.com, we're here to help you every step of the way. Click here to find an agent to work with today!