With its historic cable cars, iconic bridge, and breathtaking Victorian architecture, the Bay Area is undeniably one of the greatest areas that attract many home buyers. Bay Area locals boast about the variety of restaurants that offer cuisines from all over the world, cultural events, and the diversity of people who live here.
If you're looking into buying a home in the Bay Area, this ultimate guide will show you different aspects of the home inspection process, from how important they are to how the process works.
What is a home inspection?
A home inspection is a quality and safety assessment of a home and property being sold. To ensure the proper functioning of the home, the home inspector assesses:
- Structural components
- Electrical work
- Plumbing
- Heating and cooling systems
- Water and sewage
They'll also assess the home's overall condition for damages, fire and safety issues, and anything else that may impact its value.
It's within your right as a home buyer to know you're making a financially sound purchase. Having a home inspection can turn up any maintenance problems and safety issues that could lead to serious trouble and costs down the road. It can help you learn the condition of the property you're looking into buying and any potential risks you'll want to consider before you proceed with the transaction.
It's within your right as a home buyer to know you're making a financially sound purchase. Having a home inspection can turn up any maintenance problems and safety issues that could lead to serious trouble and costs down the road. It can help you learn the condition of the property you're looking into buying and any potential risks you'll want to consider before you proceed with the transaction.
Is home inspection before buying important?
While not required, a home inspection is an important part of the home-buying process — and here's why:
1. It provides you with an "out"
Having a home inspection before buying your new home can reveal essential information about the home's conditions. This will enable you to become aware of what repairs, maintenance, and costs you're potentially looking at right away and over time. If you're uncomfortable with what the home inspection finds, it can allow you to back out of your offer.
2. It provides you with a negotiating tool
The home inspection report you receive will provide you with a powerful negotiating tool in terms of:
- Asking for repairs
- Requesting credit
- Requesting a price decrease
Work with your real estate agent to learn what requests you can make to negotiate a better deal.
3. It can detect safety issues
Home inspections can detect safety concerns like carbon monoxide, radon, and mold. These are all things homes should be tested for, and if the home inspection detects any hazards like these, it can provide you with the option to back out of your offer.
4. Forecast future expenses
The home inspector can estimate the installation age of the home's major systems, such as the HVAC system, the plumbing, and the water heater. They'll even diagnose the present condition of the home's structure itself and inform you of the "shelf-life" of all the home's components. Knowing certain components require replacement will help you make essential budgeting decisions and determine things like warranties and the type of home insurance coverage you'll require.
Difference between home inspection vs. appraisal
Even though both a home inspection and home appraisal involve an inspector coming to the home to inspect it, and the buyer typically is the one who pays for the service, there are some key differences between the two. The appraisal is meant to find the home's value, while the inspection provides a clearer view of its condition and identifies any problems.
You'll receive a report for a home inspection and appraisal, but the report goes to the lender, and you can request a copy of it. The home inspection report provides much more detailed information about the home, giving you the confidence to move forward with the purchase.
You'll receive a report for a home inspection and appraisal, but the report goes to the lender, and you can request a copy of it. The home inspection report provides much more detailed information about the home, giving you the confidence to move forward with the purchase.
How much do home inspections cost?
The amount you pay for your home inspection will depend on your geographic location. A home inspection can be as low as $199 to up to $500 or more, with $341 being the average across the country.
Other factors that can affect inspection costs are the age and size of the home. Sometimes, home inspectors will charge a flat rate for homes up to a specific size and will gradually increase the fee for larger homes. Many will charge an even higher fee for older homes where the plumbing and wiring require more comprehensive inspection.
Other factors that can affect inspection costs are the age and size of the home. Sometimes, home inspectors will charge a flat rate for homes up to a specific size and will gradually increase the fee for larger homes. Many will charge an even higher fee for older homes where the plumbing and wiring require more comprehensive inspection.
What to know about the home inspection process
There are various considerations to take and steps to follow in the home inspection process, including:
1. Choosing a home inspector
Often, all it takes is a conversation with your real estate agent to find a reputable home inspector. They'll often already have someone they work with for this job. If your real estate agent doesn't already have a home inspector they work with, you can simply ask other homeowners around the neighborhood who they hired. Make sure the inspector's office is insured, bonded, and licensed by the state.
2. Protecting your rights with a home inspection contingency clause
This is a clause that home buyers can add to their real estate contracts. It states that your home purchase deal is contingent on what the home inspection report shows. If the home inspection shows there are issues with the home or it's unsatisfactory, you can either negotiate repairs or back out of your offer.
If you add a home inspection contingency clause to your real estate contract, you will have a certain timeframe in which you'll need to have the inspection done and any follow-up assessments.
If you add a home inspection contingency clause to your real estate contract, you will have a certain timeframe in which you'll need to have the inspection done and any follow-up assessments.
3. Ensuring the inspector follows the essential home inspection checklist
Basically, six categories are an important part of the home inspection checklist. These are:
- Structure: The inspector will look at the home's structural integrity since it will determine various other factors from that point on.
- Foundation: The inspector assesses the home's foundation and checks to see if it will cause any issues later on.
- Exterior: They'll assess the home's exterior, from roof to yard.
- Interior: They'll walk through the home and evaluate what's happening inside.
- Electrical: The inspector will look at the home's electrical system to see how it's operating.
- Plumbing/HVAC: They'll look at the home's HVAC unit and plumbing since both are very valuable components of a functioning home and are worthy of a close inspection.
A professional home inspector will know exactly what they're looking for. However, you should also learn how to identify critical inspection elements. Becoming familiar with this process ensures the home inspector leaves no stone unturned.
What to do if the home inspection shows significant damage
After receiving the home inspection report, if it indicates issues with the home, you have a few options. You can:
- Accept the home "as-is" and do nothing
- Ask the seller to make repairs on specific problems before you move forward with the sale
- Request that they lower their sales price
- Ask for credit toward the closing costs
- Walk away from the sale entirely if you've added an inspection contingency clause to your contract
It all boils down to how substantial the problems are, how strongly you feel about the home, and what type of market you're in. If you love the home, you will likely not want to back out of the sale unless the inspector discovers major issues.
Make the home inspection process easier
Now that you know having a home inspection before buying can be a very important part of the entire home-buying process, you'll want to ensure you enter this process correctly. Reach out to Scott Vaupen today to make this part of your real estate journey simple and successful and help you get into a stunning home.
