What to expect for a home inspection

One of the most crucial steps in the home buying process is conducting a thorough home inspection. It can help you identify potential issues with the property while also giving you a more complete understanding of the home’s value. That’s why it’s important to understand what a home inspection entails, its costs and its possible outcomes.

The inspection period

Once your offer is accepted by the seller, you typically have 10 days to complete an inspection, known as the inspection period. Your real estate agent will guide you through this process and often recommend reputable inspection companies, saving you the hassle of extensive research.

What does a home inspection entail?

A home inspection involves a professional inspector conducting a comprehensive walkthrough and examination of the property to identify potential concerns. Some common issues a home inspection might uncover include:

• Pests – Infestations or damage caused by termites, ants or other pests
• Roof issues – Leaks, damaged shingles or structural problems
• Drainage or water problems – Poor drainage, leaks or water damage
• Plumbing and electrical problems – Faulty wiring, outdated systems or plumbing leaks
• Structural issues – Foundation problems or structural defects
• Code violations – Non-compliance with building codes and safety standards

Once complete, the inspection results are documented in a detailed report, providing you with a clear understanding of the property's condition.

How much does a home inspection cost, and how long does it take?

A home inspection typically costs between $300 and $700, depending on the size and location of the house. The inspection usually takes a few hours to complete, during which the inspector will assess all accessible areas of the property.

Do you need a home inspection?

Legally, a home inspection is not required. However, it is highly recommended, especially when your home might be the biggest purchase you make in your lifetime. A thorough inspection can save you significant heartache by revealing issues that may lead you to reconsider the purchase. Moreover, it provides an opportunity to negotiate repairs or price reductions based on the inspection findings, potentially saving you hundreds or thousands of dollars. Additionally, some homeowners insurance companies require an inspection before underwriting the home.

What if a lot of things need to be fixed?

This is the reason for the inspection! In fact, while it may be disappointing, you’ll likely be glad you knew about potential hidden issues prior to purchasing your home. If that’s the case, you have several options to consider with the help of your real estate agent:

1. Negotiate for repairs or a price reduction: You can ask the seller to address specific issues or reduce the price to cover repair costs. However, to maintain a good relationship with the seller, consider including obvious repairs in your initial offer and handling minor fixes under $100 yourself.
2. Buy "as-is" for a price cut: You can negotiate a deal with the seller to purchase the home as-is at a reduced price. For example, you may ask to cut $5,000 from the offer price in exchange for not requiring any repairs.
3. Cancel the contract: If the house requires extensive repairs you were unaware of, you have the option to cancel the contract. Be mindful that canceling after the inspection period may result in the loss of your earnest deposit, which is the money you put down to show you have genuine intentions of purchasing the home.

Do you need homeowners insurance?

Yes, homeowners insurance is legally required and is typically paid as part of your monthly mortgage payment. The insurance portion of your payment is set aside in an escrow account, and the loan servicer uses that money to pay for your homeowners insurance annually.

Even though you don’t send the check directly, you do have a say in the type of coverage you have. Homeowners insurance policies vary widely in what they cover. For instance, most Arizona real estate policies cover water damage from above, such as rain, but not from below, like sprinkler flooding. Therefore, it's crucial to read the fine print and choose the right coverage for your needs.

Maximizing your home-buying confidence

A home inspection is a vital part of the home buying process, offering peace of mind and protection against unforeseen issues. It provides a detailed assessment of the property's condition and can help you make an informed decision. Whether negotiating repairs, opting for a price reduction or deciding to cancel the contract, the information obtained from a home inspection is invaluable.

Remember, buying a home is a significant decision, and having a thorough inspection can help you be more certain when making one of the biggest purchases of your life. For additional guidance and support, feel free to reach out to us at Desert Financial. Happy house hunting!