Patch Blog: Home Inspection 101

 In my last post, I discussed the physical inspection contingency that buyers include when they make an offer to buy a house.  This week I'll discuss what buyers and sellers can expect during the inspection process.

After an offer has been accepted by the sellers of a home, the buyers typically have 17 days to complete all of their inspections, the most important of which is the home inspection.  These inspections are done by certified inspectors who look at every aspect and system to determine the general condition of the property.  Usually the buyer's agent will request that the seller not be present during the inspection so that the buyers and their inspector can discuss the flaws and issues that arise during the process. 

While most homes are usually in good condition, sellers tend to take offense when they hear an inspector describing even small problems.  Sellers need to remember that no house is perfect, even if it is new construction.  The inspection is the opportunity for the buyers to make themselves aware of what should be fixed prior to the close of escrow, as well as what they can expect to encounter after they become the new owners of the house. Many buyers even choose to accompany the inspector during this process, but be sure the inspector is okay with it. 

So what happens during the inspection?  For the most part, an inspector will go through the house, under and on top of the house, and check all interiors and exteriors.  The list would typically include:

Foundation - Here the inspector is looking at the structural integrity of the house.  In the case of a raised foundation, they go under and check for cracking, settling, moisture issues, and retrofitting. He will also be looking at the joists and supports to be sure everything looks proper.  Since we live in California, many older homes do show evidence of movement from years of earthquakes, but in most cases there is no cause for alarm unless there are significant horizontal cracks that could undermine the structure.  If the inspector notices anything that looks like a concern, they will most likely recommend you hire a seismic safety expert to verify the structure is sound. If the foundation is concrete slab, if possible, the inspector will check for cracking or moisture intrusion.

Roof - While most inspectors do not certify the life expectancy of a roof, they can certainly determine the type of material used and make an estimate as to its age and condition.  If they feel there may be issues for concern, the inspector will advise the buyers to contact a roofing contractor for a more detailed inspection.

Plumbing - The inspector will check to see if the plumbing is galvanized, typical in older homes, or copper.  If the homeowner has done any kitchen or bathroom remodeling, there may be copper plumbing only in those areas, so it is important to verify whether the copper is partial or 100%.  The inspector will also check for any leaking, improper connections, water pressure, water flow to toilets and faucets, shower condition, and ventilation.  The water heater is also inspected for appropriate strapping and installation. Inspectors do not,  however, check sewer lines.  If the buyer has any concerns in that area, there are several companies that specialize in sewer line checks using cameras that will scope the entire line from the house to the street.

Electrical - While not electricians, most inspectors can assess the electrical system adequately. They will look at the main panel to be sure breakers are labeled, whether the grounding is proper, and if there is double tapping.  Also included in this part of the inspection is making sure outlets, lighting fixtures, and ceiling fans work and that GFCI outlets are installed near kitchen and bathroom sinks, as well as on the exterior.

Heating and Air Conditioning - The inspector will determine the type of heating system that is present and its condition. He will verify that the heat distributes correctly and that venting is appropriate.  If there is air conditioning installed, the inspector will check to be sure that the compressor is functioning as it should and will see that the ducting is working and not in need of repair.  In some cases, asbestos will be discovered during the inspection of older homes.  Most inspectors are of the opinion that this type of ducting is fine as long as it isn't disturbed, but many buyers choose to have it removed by an asbestos removal expert after they move in to their new home.

Exterior - It is usual for inspectors to look at many aspects of the property's outside features.  They will check the siding or stucco and the trim to be sure of its condition and to make sure there is no moisture intrusion. In the case of any wood damage or dryrot noted, the inspector will typically make a note of the problem and advise the buyer to consult the termite report.  An inspector should examine driveways and walkways for potential problems, such as cracks that could cause tripping. All fences and walls should be included in the report to address any deterioration or damage. In addition, all doors and windows, including those in the garage, will be checked to verify that they open and close correctly.  Decks and patios are inspected for condition, along with balconies and stairs, to be sure they are safe.  Chimneys are also an important item to inspect, and while most inspectors are not chimney experts, they can get a good idea of whether a chimney is safe. If they feel it could pose problems, they will refer the buyer to a chimney specialist who can do a further inspection to determine its condition. 

Interior - This aspect of the inspection is just as important as everything else.  The buyers want to know if any  remodeling was done and if it was permitted.  While the inspector is not responsible for checking permits, he will usually be able to tell if additions were done to the house.  An inspector will look at walls and ceilings and note any cracking, some of which will be typical for an older house.  If the home has a fireplace, the inspector will check inside the firebox for any signs of problems and whether there is a damper in place.  All kitchen and bathroom fixtures are tested for leaking and all hardware is inspected to be sure it is secure and working properly.  It is also very important for your inspector to go into the attic to check for insulation and ventilation, as well as examining the structural aspects for stability and integrity and to make sure there is not moisture or rodent problems.  In older homes, if there is knob and tube wiring present covered by insulation, the inspector will advise that it be pulled away from the wiring, as this can be a fire hazard. 

Garage - Even if the garage is unattached, it is important that it be inspected the same as the house. The garage door should be examined to be sure it works correctly, and if there is an automatic opener, the inspector will assess that it operates safely.  All parts of the garage will be inspected, including the floor, roof, wiring, and walls.

At the completion of the inspection, the inspector will summarize the major issues that were noted, and will then provide a written, detailed report on the findings.  It may be given to the buyer at the inspection or emailed later that day.  The buyer can then meet with their agent to discuss the report and to determine if a Request for Repairs should be made to the sellers.  It is usual to have the seller address health and safety issues related to the inspection, but buyers are free to ask that everything on the report be repaired.  Most agents will counsel their buyers to ask for major items, but to skip the little things that can be fixed after they move in to their new house.  In most cases, this process is part of the negotiation and can result in the seller agreeing to make all or some of the repairs, offer the buyer a credit, or not agree to any of the requests.  The buyer can accept the seller's response, not accept it and make another request, or cancel the transaction completely, as long as they are within the 17-day deadline. Usually everyone comes to an agreement and the buyer then removes their inspection contingency and the purchase is completed on schedule.  The buyer does have the opportunity to verify the repairs were made as agreed during the final walk-through, or they can have their inspector return to the property to make a second inspection of those corrected items. 

Both buyers and sellers should be aware that this is likely the most difficult part of the transaction.  Buyers want to buy a house that is safe and not have to move in knowing they will have to make major repairs right away.  Sellers want to get their home sold and sometimes get upset that a buyer feels they are responsible for fixing things.  Unless everyone agrees from the onset that the house is being sold "as is," it is reasonable for a buyer to expect a seller to make repairs or offer a credit for significant problems called out in the report.  In most cases, a compromise can be reached and everyone walks away happy.