May 24, 2021

How a home inspection works.

all expert tips

Jacee Monsalve

How a home inspection works.

The only person not on edge while waiting for the results of a home inspection is the inspector. Buyers are fearful of costly repairs hidden in the walls and sellers are fearful of little issues getting blown way out of proportion. The Realtors are… well let's be honest, they are usually just concerned about getting a commission. 

When buying or selling a house, there is almost always an inspection contingency. This allows the buyers to back out of the contract or renegotiate if they are not satisfied with the inspection report. 

A licensed home inspector will typically spend a couple of hours going through a house noting every little thing that is wrong, from a loose door hinge to a faulty GFCI. The inspector will also take note of the ages and general condition of things such as the AC, water heater, roof, and electrical panel. Cosmetic items such as old cabinets or mildew in the shower will not be a concern however. In the end, the inspector will provide a report, usually around 20 pages.

Although home inspection reports by themselves are not a black and white, pass/fail kind of thing, parts of it can be. If the buyer is getting a mortgage, the home will need to be insurable for the lender to make the loan. When applying for insurance, the insurance company is going to require a passed 4 point inspection report.

A 4 point inspection details 4 main items:

  • HVAC (Heating, Ventilation, and Air Conditioning)
  • Electrical
  • Plumbing
  • Roofing

If something in one of these categories fails the 4 point inspection, it will usually have to be fixed before the sale. Since insurance companies will often give a little timeframe in which the new homeowner has to make the new repairs, the house can sometimes be sold without the repairs being made. If you as the seller cannot afford a necessary 4 point repair, it is common to give the buyer a credit to make the repairs immediately after the sale. A common example would be in the case of a 25 year old roof.

If the buyer and seller get estimates and find a roofer who will replace the roof for $15,000, then the seller can give a $15,000 roof credit at closing. If no credit is given, the buyer will have to be able to pay for the new roof themselves after closing.

When you are ready to buy a home, leave the technical details to us. We will help you save the most money possible, handle the contracts, and deal with all the other nuts and bolts so you can relax. For more information on this topic, or to buy your next home, give us a call today or fill out the form here!


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