Home Buying 101 – Step 10: Get a Home Inspection

This is the ninth post in a series of twelve on buying a home.  Click here for the other posts in this series.

Once your offer to purchase has been accepted, a few things must happen relatively quickly, including the home inspection by an inspector hired by the buyer.  A home buyer has a period of time, as outlined in the purchase and sales agreement and generally 7-10 days, to have the home inspection performed and then notify the seller of any unsatisfactory results. 

Here’s some advice on how to find a home inspector.

Ten Questions to Ask Your Home Inspector.

There can be several parts to a home inspection, including the general home inspection, well, septic, radon and environmental testing.  Depending on the property, the market and your experience in home buying, you may want all or none.  I always recommend home inspections, no matter the market or the buyers experience. 

• General Home Inspection.  The inspector will: 
  • Evaluate the physical condition: the structure, construction and mechanical systems.
  • Identify items that should be repaired or replaced.
  • Estimate the remaining useful life of the major systems (such as electrical, plumbing, heating, air conditioning), equipment, structure and finishes.
  • The inspector will also test for radon in air.
• Well Water.  Homes in Connecticut may either be on public water or well water.  If there is well water, the inspector will:
  • Test for bacteria in your drinking water and the presence of radon in water, among other things.
• Septic.  Homes can either be on public sewer or an individual septic system in CT.  The inspection is performed by licensed septic inspector, rather than the general home inspector.  A septic inspector will evaluate:
  • The use of the current septic system.
  • The condition and performance of the septic system.
  • The condition of the leaching system.                                                                Note: In CT, the buyer only pays for the septic inspection, not the pumping of the system, which must be paid by the seller. 
• Environmental Tests.  A home buyer may elect to have a variety of environmental related tests performed, including lead paint, mold, asbestos, and UFFI.  Some home inspectors will test for these items but they may also refer you to other companies.  Here are some things to consider if you are thinking about having these tests performed:
  • Expect lead paint in a home built before 1978.
  • Mold is present in every home but people with allergies or with diminished immune systems should be more cautious.
  • Asbestos was a common material found in insulating products and in CT, is commonly found in wrapping on pipes and water heaters, in floor tiles, shingles, etc.  It can be found in most older homes.

How Much Do Home Inspections Cost? Costs for home inspections vary, depending on the size and type of property as well as the number of tests being performed.  Expect to pay somewhere around $350 -$600 and up. 

Also keep in mind that the inspector(s) may suggest that you ”investigate” certain items  further.  For example, an inspector may note that there is a foundation crack.  He/she will likely recommend that you have a structural engineer analyze the crack for you and determine if you should be concerned or not.  This would be an additional expense. 

Renegotiating the Contract.  Many buyers attempt to use the inspection to renegotiate the purchase price, which aggravates many sellers.   However, if a buyer did his/her due diligence when putting in an offer, then there shouldn’t be too many huge surprises at the inspection and the price should hold.  If there are any big surprises, then it is perfectly acceptable for the buyer to request the seller repair the items, reduce the selling price or ask for money in lieu of repairs being made.  Getting the seller to actually do the repairs is completely out of the buyer’s control.

As-is Sales and What if the Seller Refuses to Make Repairs?  If you’re buying a house as-is, that means that the seller is not making any warranties about the condition of the property.  However, that does not mean the seller will not necessarily make repairs or offer to reduce the sales price of the property if a problem is discovered that is unexpected. 

For example, a buyer can see for himself/herself that a furnace is aged and that it may lhave to be replaced.  However, if that furnace is only a few years old, the buyer could reasonable expect that furnace to be functioning.  Upon inspection, the buyer discovers that the furnace was not installed properly and needs modifications.  The buyer can certainly request that the seller make repairs, although the seller may still refuse.

If a seller refuses to make repairs you requested, you have three options: 

1. Continue to negotiate and possibly give them an ultimatum – if you don’t do X, we’re walking.   Only do this if you really are willing to walk away from the deal.
2. Accept the property as it is and buy it, knowing that you will have to make the repairs yourself.
3. Terminate the contract – you are within your rights to terminate the contract as long as it’s done within the time-frame specified in the contract.