Home Inspections
If you’re buying or selling a home, it’s important to understand what a home inspection entails and how it affects the sale or purchase of a house. In fact, in our experience, a home inspection is the number one way buyers, in particular, can protect themselves during the transaction. Sellers need to be prepared for potential buyers to be concerned with the property's condition and ready to negotiate any items that the home inspection uncovers. On one hand, a home inspection may seem like a hassle, but on the other, giving the buyer an opportunity to really know what they're getting into will help prevent disputes after closing. Some highly motivated sellers will even pay for their own home inspection ahead of putting their property on the market in order to conduct any repairs the buyer will likely discover; keep in mind, however, that the seller must disclose to future buyers any material defects they discover and repairs they make!
The purchase contract specifies a set period of time for the buyer to conduct any and all inspections of the property as long as no damages occur. Typically in Arizona, this contractual time period is ten days; however, in some circumstances, it may be worth negotiating a longer inspection period. For example, if there are signs that there are many material concerns, the buyer may need a few extra days to get specialists out to the property. The buyer gets one shot at raising their concerns.
What Is a Home Inspection?
A home inspection is an objective visual examination of the structure and systems of a home by a neutral third party. Basically, it shows you what’s wrong with the property and if it is serious enough to prevent a sale. (Note: An inspection does not concern code violations and therefore does not guarantee that the home is free of them.)
The three main points of the inspection are to evaluate the physical condition of the home, identify items in need of repair or replacement, and estimate the remaining useful life of the major systems, equipment, structure and finishes.
Keep in mind that a home inspector is not a miracle worker. All utilities should be on at least during the inspection period. Also, an inspector cannot report on defects that are not visible, such as defects hidden behind finished walls or beneath carpeting, and inaccessible areas. Simply put, it is not reasonable for an inspection to cause physical damage to the property and, in fact, the buyer is liable for any damage even if they do not complete the transaction and buy the house. Seasonally inoperable systems (swamp coolers, air conditioning, furnaces) will be examined but may not be able to be fully operated. For example, an air conditioner systems can be checked in the winter, but some issues may not be visible until hot weather, so be sure to consult your home inspector at the time.
Hiring an Inspector
To hire an inspector, get recommendations from your real estate agent or from friends and family. You can also find home inspectors online by searching for “Home Inspection Services.” In Arizona, the Arizona State Board of Technical Registration (BTR) certifies and regulates home inspectors. When interviewing inspectors, be sure to ask for references and memberships in professional associations. Find out about the inspector’s professional training and experience. Finally, compare prices. We keep a list of home inspectors that either our clients or fellow agents have used successfully, but it is important to do your own due diligence and make sure you trust your home inspector.
It’s a good idea to be present during the inspection for a few reasons. You can ask the inspector questions during the inspection, which is especially helpful when buying your first home or first property in a new area. The inspector will have the opportunity to point out areas of potential trouble, and many inspectors also will offer maintenance tips as the inspection progresses.
It's also a good idea to have other inspections done at the same time. A home inspector may recognize signs of termites, for example, but a termite inspector has much more experience and can point you in the right direction for treatment options. A sewer scope is also often appropriate, especially in the desert where invasive tree roots can break into and clog sewer lines; most home inspectors don't carry the necessary equipment. The buyer only has a set amount of time to complete their inspections, so scheduling different professionals at once can save a lot of time.
Costs and Time Involved
The inspector’s most important priority is accuracy, and accuracy takes time. The chances of mistakes are more likely if the inspector rushes through the inspection. Your inspection may take between two and five hours. Older homes take longer than newer ones, as do homes with pools and other unique features.
Expect your inspection to cost from $200-$500 depending on size of the home. This money is not refundable, but it may be one of the most important investments you make when buying a home.
Making Suggested Repairs
The seller is not required to make any repairs or replacements unless previously negotiated in the purchase contract. However, the buyer is not required to take the property as-is unless that has been previously negotiated. In most cases, the buyer can choose to cancel without even giving the seller a chance to correct the problems. The buyer can also ask the seller to make repairs; the seller then has time (usually five days) to decide if they want to do the work, offer another alternative, or do nothing. If the seller does not agree to all repairs, the buyer can cancel the transaction at that point. For sellers, it is important to remember that repairs one buyer wants will most likely be an issue with other buyers, so get good advice!
If the seller does agree to make repairs, the buyer should make certain those repairs are done correctly. Many home inspectors offer a reduced fee for a quick re-inspection for just that purpose.