Home inspection checklist for buyers
A home inspection is critical to understanding the actual condition of your new home. The information found in a home inspection checklist helps you make informed decisions about the property you’re buying and can be a valuable tool when negotiating with a seller, planning for future maintenance and giving you peace of mind that you’re making a sound investment.
In this blog post, we’ll focus on the benefits of a home inspection, what an inspector looks for and who pays for fixes.
Home inspection vs. home appraisal: What’s the difference?
Both appraisals and inspections often occur around the same stage of the homebuying process, typically after a purchase agreement has been made but before the sale is finalized. But they serve very different purposes. An appraiser focuses on your home’s value, while an inspector looks for existing and potential future problems. Before we dive into the home inspection checklist, let’s clear up what makes a home inspection and an appraisal unique.
What’s a home inspection?
A home inspection is a detailed visual examination of the physical condition of the property you’re buying. It’s done by a licensed home inspector whose primary goal is to identify any issues, defects or potential problems with your new home. You hire the home inspector, so they work for you, and their report is for your benefit.
While a home inspection is optional for most mortgage loans, it’s highly recommended. By revealing significant repairs needed or general maintenance required to keep your home in good condition, the main advantage of a home inspection checklist is saving you from costly surprises down the road.
According to the American Society of Home Inspection (ASHI), to help homebuyers better understand the property they’re buying, a home inspector looks at the interior and exterior of the home and covers “the condition of the home’s heating system; central air conditioning system (temperature permitting); interior plumbing system; electrical system; the roof, attic, and visible insulation; walls, ceilings, floors, windows and doors; and the foundation, basement and structural components.”
What’s a home appraisal?
Most home loans typically require a professional appraisal, including refinances. The appraisal primarily considers recent sales of similar properties in the area, the property’s condition, and any upgrades or improvements. An appraisal helps determine fair market value and the amount of loan-to-value. It also helps to ensure you aren’t paying too much. As your lender, we’ll choose and hire the appraiser during the mortgage process after your purchase agreement is signed.
Who pays for the home inspection?
If you choose to get your new home inspected before you buy it, you’re responsible for paying the fee out of pocket. Sometimes, sellers decide to get their homes inspected to fix issues before listing their homes. If this is the case, then the seller is responsible for paying the costs.
To find a home inspector, you can start by asking your real estate agent for a recommendation. You can also search the ASHI and the International Association of Certified Home Inspectors websites.
Benefits of a home inspection
From identifying potential problems to giving you peace of mind, a home inspection can help you make an informed decision when buying your first home.
- Save money by identifying potential problems: A home inspector can uncover hidden issues that may not be visible when you do your final walkthrough. These problems can include structural defects, water damage, electrical issues and plumbing problems. By identifying these issues early on, you can avoid potentially costly repairs or renovations down the line.
- Help to ensure your home is safe: Inspectors will check for hazards like faulty wiring, gas leaks and mold infestations. These issues can pose serious health risks, and it’s essential to address them before you move in.
- Get leverage for negotiating your offer: Armed with a comprehensive report outlining the findings of your home inspection, you can choose to renegotiate your offer with the seller before closing the deal. You can ask for the necessary repairs, or you can request seller concessions such as a lower purchase price, helping to cover closing costs, funding a temporary buydown or even bartering for appliances and furniture that are in the home.
- Plan for future repair costs: If you choose not to have the seller make repairs, use your inspection report to plan your homeownership budget for future renovation projects.
- Education about your new home: Take the time to attend the inspection so you can learn more about where important things are located, like the thermostat, electrical panel, gas meter and main water shut-off. This is also your opportunity to ask questions and even get handy tips on general maintenance. As the National Association of REALTORS© states, “Buyers are welcome for any and all of the inspection as a chance to take a closer look at parts of the home you typically wouldn’t.”
- Peace of mind that you’ve made the right decision: A home inspection isn’t just about uncovering issues. By hiring a professional, you can be more confident in knowing you’re buying a home that’s in good condition than if you relied on walking through it on your own.
How long does a home inspection take?
The home inspection happens after your offer is accepted but before you close on the home. You can expect a home inspection to take three to four hours. Less if you are buying a small condo, more for a larger or older home.
Home inspection checklist
Home inspectors have a thorough checklist of items to review in and around your home. Inspection Certification Associates (ICA) provides this glimpse of what goes into an average home inspection job:
Inspecting the grounds
- Drainage flows away from the house
- No standing water is present
- The septic tank is not leaking
- Branches from nearby trees are not touching or hanging over the roof
- The yard is in good condition
- Fences, decks, garages and sheds are in good condition
- Railings on decks and stairways are strong and secure
- Driveways and patios are in good condition
- Downspout drainage is positioned away from the home
Inspecting the exterior
- Visible foundation is in good condition
- Ridge and fascia board lines are straight
- Sides of house are not bowing or sagging
- Door and window frames are square
- Siding is not cracked or damaged
- No cracks in masonry veneers
- No dents or damage to vinyl siding
- No stains on exteriors
Inspecting the roof
- Shingles are not bent, molding or flaking
- Flashing is present around roof penetrations
- Gutters are not sagging or rusted
- Chimneys are straight and flashed correctly
- Exterior vents are clear
Inspecting interior rooms
- Windows are in good condition
- Doors are functional and not damaged
- Door frames are in good condition
- Fireplace flue is clean and functional
- Flooring is in good condition, not stained
- Paint is not chipped
- Light switches are functional
- Cabinets are functional
- Smoke detectors are working
- Carbon monoxide detectors are functional
- Stairway tread is in place
- Stairway handrails are secure
- Crawl spaces are adequately vented
- Garage door opens and closes as intended
- Basement is in good condition
- Attic has no signs of decay or damage
Inspecting home systems
- Electrical outlets are functional and grounded
- Insulation is adequate
- Pipes are not leaking
- Water pressure is steady
- Plumbing is fully operational
- Water heater functions adequately
- Electrical wiring is secured and working properly
- Service panel is not overheating
- HVAC system operates well throughout home
- Air filters are clean
- Ductwork is in good condition
- Toilets function properly
Looking for defects
- Structural damage
- Water damage
- Roof damage
- Electrical system damage
- Plumbing issues
- Pest infestations
- HVAC issues
FHA home inspection checklist
An FHA loan is insured by the Federal Housing Administration (FHA) and offers options to borrowers with lower minimum down payments and credit scores. While FHA loans may be easier to qualify for than conventional loans, the appraisal requirements are usually stricter.
Only certified FHA appraisers can perform appraisals for FHA loans. In addition to determining the home’s current market value, an FHA appraiser analyzes your property to make sure that it meets the minimum property requirements and is safe and livable. If the appraiser finds items that make the home unsafe or unlivable, repairs must be made before the FHA loan can move forward.
While a basic inspection is built into the FHA loan appraisal process, it’s primarily concerned with health and safety issues. However, to safeguard themselves from expensive future repairs, FHA borrowers are strongly encouraged to hire a home inspector to complete a full and comprehensive home inspection checklist.
VA home inspection checklist
VA loans, also known as Veterans Affairs mortgages, benefit veterans, service members and surviving spouses. They offer lower interest rates than traditional mortgages and allow you the advantage of borrowing up to 100% of the property’s value with no private mortgage insurance (PMI) requirement.
After applying for a VA loan and making an offer, a VA-approved appraiser will appraise the home to ensure it meets minimum property requirements (MPRs). The over thirty requirements range from remediating lead-based paint to rules concerning safe year-round access to the home. While the appraisal is required, following a VA home inspection checklist is not. However, it’s recommended you hire a home inspector to check for any major defects before you purchase a home.
Who pays for any fixes needed after a home inspection?
No home is perfect, and not all the problems identified on your home inspection report need to be fixed, such as normal wear and tear. A home inspector will indicate what components or systems are in need of major repairs or replacement.
When deciding what to include in the offer contract on your home, it’s common to have a contingency clause related to the home inspection. Contingencies offer protection because they allow you to change your mind on a home sale if something that’s specified ahead of time in the contract doesn’t work out. In the case of an inspection contingency, the seller may be willing to pay for fixes if it means moving forward with the sale.
When it comes to seller-funded repairs, states have laws that dictate non-negotiables for significant issues. As Move, Inc. explains, “Sellers have a legal obligation to either repair or disclose serious issues with the home. If the repair request is a big one—and it’s not a surprise to them—they’re almost always going to be required to spring for the cost or lose the sale.”
For other issues, they suggest focusing on the issues that are most important to you rather than presenting the seller with a “laundry list of repair requests.” If you don’t want to risk losing out on a property, you may decide to pay for some or all of the home fixes yourself.
Once the negotiated repairs are completed, NAR recommends getting the final signoff from your home inspector. This may be an additional cost, but it will give you confidence that the work has been done.
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The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.