What to Expect from a Home Inspection

WHAT TO EXPECT FROM A HOME INSPECTION

By:  Teri Danahey

When you purchase a car, you have an opportunity to test drive it or take it to your mechanic to have it checked out.  After all, most people are not experts in how a car works but most people own one. 

When you purchase a home, you also have an opportunity to have it inspected to understand its current condition and detect any unseen defects that may affect value.  In the State of New Jersey, home inspectors must be licensed by the state and recommended that they belong to their trade group, American Society of Home Inspectors (ASHI).  The cost of a home inspection varies by the size of the home (generally $400-600) and by what add-ons are included such as a termite inspection or a radon inspection.  

Home Inspection Contingency

The offer to purchase / contract will likely specify a “home inspection contingency” where the buyer is entitled to have the home inspected promptly (3-10 days after the conclusion of attorney review. 

If there are any defects noted in the home inspection, this information must be transmitted promptly (within 72 hours) to the seller’s attorney if a repair / replace claim is being made by the buyer and the seller must respond promptly (generally within 48 hours) as well. 

If the buyer and seller cannot agree on the value of the home based on any defects or come to a satisfactory remedy (repair, replace, reduction in price), then the contingency says that either buyer or seller may void the contract.

Scope of the Home Inspection

Home inspections are limited to heating, electrical, air conditioning, plumbing, roofing, structure, foundation, well and septic. 

Other related home inspection items that may be separate would be:

• Lead paint inspection
• Swimming pool / pool equipment inspection
• Asbestos inspection
• Underground oil tank
• And others

A “defect” is generally classified as one which renders that component incapable of doing the job it was designed to do at the time of the contract.

Things That Are Not Considered Defects

• Aesthetic Items:  Things unpleasing to the eye only.

• Outdoor Elements:  Such as bushes, trees, grass, sidewalk, paving, puddles, water runoff (except where effecting structure).

• Ambiguous Items:  Items which the home inspector claims are working now, but are at the end of the useful life and MAY malfunction in the foreseeable future.

• Naked Eye:  Things which are noticeable to the naked eye (broken windows, torn screens, etc) must be brought up before entering the contract.  The home inspection covers only those items which one would need an expert to assess.

The Home Inspection Snapshot

A house is constructed of many materials and fixtures with different uses and lifespan.  At any one time, things are new, things are wearing out and frankly, some things may be broken.  As our car example above, you may buy a 10-year old car with 90,000 miles with a new transmission, 2 years left on the battery, small dent in the fender and 10,000 miles left on the tires.  The value of the car would be based on those pluses and minuses.  A car buyer would not expect the car seller to put in a new battery, new tires, and fix the dent for that same price.    In addition, we assume that the buyer feels confident with the car purchase after an expert evaluated the car and rendered a professional opinion of satisfactory condition. 

The same is true with a home inspection.  The inspector discovers a lengthy list of conditions while reviewing a house.  That is, things that look recently maintained, things where maintenance will be due soon, things that are in disrepair and some things that are broken and cannot perform their function.  The inspector will sort these observations into categories – the defects for immediate consideration and other items become incorporated into the buyers normal home maintenance efforts.  You would discuss how you felt about any defects with your attorney to determine if you wanted the seller to repair or replace.  

When the home inspection process is complete, the contingency can lifted from the contract and proceed to the next steps in the transaction