Home Inspections

Caveat emptor. It's a familiar a Latin phrase that means "buyer beware." Unless you're buying a newly built home, you'll have to pay for any repairs that the home might need, unless you can prove that the seller intentionally hid or concealed the problem at the time of the sale.

Home inspections are how you protect yourself from a potentially disastrous event in your home-buying experience, which is supposed to be an exciting time. So, as a buyer, it's important that you understand why inspections are important, how they work and how to choose an inspector.

Caveat Emptor

When it comes to buying a house- an older house, not a house that you had built by a contractor or developer- the basic rule of caveat emptor applies: the buyer has the primary duty to inspect the premises. Generally, you're required to conduct a reasonable visual inspection of accessible portions of the premises to discover ''apparent'' defects. If you don't do so, you'll have a hard time getting the seller to pay for any repairs that you discover later.

You can hire an inspector to perform this inspection, and it's usually a good idea to do so, because this is a huge investment for you. An inspector won't perform a mere visual inspection, but rather he or she will conduct a thorough inspection of the house. That way, no problems or defects go unnoticed and you can avoid potentially expensive repairs and maintenance in the future.

An appraisal is not a home inspection. Although an appraiser might make some notes on things that might need to be fixed, he or she will not perform an in-depth examination of the house.

Inspectors

Inspection services are provided by local home inspection companies, contractors, engineers and architects. These professionals can usually be found in the yellow pages of the telephone book under listings such as building inspection or home inspection. Also, many inspectors belong to the American Society of Home Inspectors (ASHI), although membership in this organization doesn't assure that the inspector is competent. Your real estate agent or broker may also keep a referral list of home inspectors.

Generally, you'll want to find an experienced, well-trained inspector, so make sure to ask him or her about that. Experience in fields like engineering is useful, but training and experience in home-building and construction is important.

In a few states, inspectors must be licensed by the state in which they work and must undergo training and education. Many states, however, do not require licensure, and some don't even require formal education or training. So, before you hire an inspector, check the laws in your area about licensure. And, you should check his or her references and a sample report.

A good inspection report will identify the poor conditions or needed repairs and the severity of the problems. If a condition discovered by the inspector is serious and costly to fix, you should consider:

• Asking for an appropriate reduction in the purchase price
• Ask the seller to fix the problem, or
• Terminating or cancelling the sale

In this regard, it's common (and wise) to condition your offer to buy on your satisfaction with the inspection. So, if there are serious problems, like a cracked foundation or a leaky roof, you can cancel the sale if the seller refuses to lower the price or fix the problem. Standardized purchase and sale contract forms, which are often used by local real estate associations, may include terms regarding home inspections, including how much time is allowed to conduct an inspection and to negotiate for any repairs or credits against the purchase price of a home. Standardized contracts may also state the severity of a defect needed to support cancellation of the contract by the buyer with a full return of his or her earnest money.

The Inspection

It's important to be present during the inspection, so that you can take careful notes and ask the inspector questions about how any problems can be repaired. Think ahead about possible concerns (that may include horror stories that you have heard from other people). Don't be afraid to speak up. Even if no problems are found with the home, the home inspection offers an excellent opportunity to learn about your new home!

The inspector should carefully look over the house's major operating systems, and include an estimate of their remaining useful life. This usually includes the:

• Electrical system
• Heating and air conditioning system
• Plumbing
• Roof

It's common also for inspectors to examine attics, crawl spaces, insulation levels, windows, doors, and any appliances that will go with the home, like refrigerators, ovens and dishwashers.

An inspector will be looking for evidence of:

• Water seepage
• Structural defects, like a cracked and leaking foundation or bent or twisted support beams
• Violations of the local electrical and plumbing code, such improper size of pipes or improper connection to the sewer system
• Construction defects, like sagging ceilings or walls

In addition, some inspectors will look for infestations of insects and pests, like termites and rats. It's common, however, for a buyer to have this type of inspection performed by an exterminator or other specialist. Make sure you ask your inspector if he or she will inspect for bugs and pests, and if not, you'll want to arrange for a separate inspection.

Depending on your location, the home inspector may offer radon testing as a part of the inspection for an extra fee. Radon is a naturally-occurring gas, which is found in many parts of the country, and which may pose health risks. Depending on the level of radon detected, it may not even present a health issue, or if the test results show a problem, the seller can be asked to provide installation of a radon mitigation system, which will safely vent the radon gas away from the house.

The cost of a home inspection varies according to where the home is located, the size and age of the home and its operating systems, and the experience and expertise of the inspector. In general, though, you can expect to pay anywhere from $ 300 to $ 500. But, spending that sum now, before you buy, can save you thousands of dollars in maintenance in repairs down the road, so it's money well spent.

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