The home inspection from a Realtor’s perspective
Since we sell about 50-60 homes a year, and about half of those sales are to buyer clients, we attend roughly 25 home inspections each year (which means 250 since opening McSharry and Associates and at least double that if you count Patrick’s first 16 years in the business) so we have been to a LOT of inspections and we are big fans! A home inspection is the buyer’s best opportunity to uncover any potential issues AND to learn about their prospective new home.
The primary purpose of the inspection is to identify substantial defects, which is contractually defined as any single item that could potentially cost $1500 or more to repair. Think leaking roof, malfunctioning heating system, bowed foundation, asbestos wrapped pipes, vermiculite insulation in the attic, mold in the basement. This doesn’t mean an accumulation of small items that amount to $1500, which is important to remember. Should the inspector find one (or more) substantial defects, the buyer has the opportunity to renegotiate the contract. This can include asking the seller to repair the problem, asking for a credit in order to repair the issue post-closing or even terminating the contract.
The inspection is also an opportunity to learn about your new home’s various systems. The inspector will likely show you how to change the furnace filter, point out where your water shut off is, give you the approximate ages of your mechanicals, explain what that unidentified doohickey in the basement corner is for. Each time we attend an inspection, we learn something new and while the amount of information that is shared during the two hours you are with the inspector can be overwhelming, you will get a detailed report summarizing everything. A good inspection report is like a home’s instruction manual. Keep it filed away and refer to it regularly!
Hiring an experienced and qualified home inspector is crucial. This is not the time to save a few dollars by hiring your cousin’s friend who knows a lot about houses. Make sure you find a NYS licensed inspector and do your research to ensure they know what they are doing. We have a list of recommended inspectors to share if you like.
Given that the real estate market continues to be heavily weighted in favor of sellers with inventory remaining tight and multiple offers being the norm, some buyers choose to waive the inspection to make their offer more appealing. Unless you are very confident in either the home’s condition or your ability to identify potential structural issues, we strongly advise against this option. Rather than waiving the inspection, we recommend increasing the threshold for a substantial defect to something above $1500 (perhaps $2500 or $5000 depending on your budget to address possible issues after closing). This can provide the seller assurance that you don’t intend to back out of the deal for relatively small issues, while still protecting you from more catastrophic ones.
Aside from finding the right house (and getting your offer accepted), the home inspection is arguably the most important part of the home buying process!