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A home inspection is usually a part of a real estate transaction and is typically required by mortgage lenders. It is a detailed report on the condition of the home performed by a qualified inspector, regarding any issue that may influence its value. The inspection guarantees the property’s safety and condition.
The inspection will check for insect damage such as termites, and water and fire damage. In addition to this, the inspector will assess a property’s HVAC systems, electrical work, water, sewage, and structural integrity.
A home inspection is recommended regardless of whether the home is a new construction or an older building. Typically the inspection takes place after the home sale contract is signed and there is usually an inspection contingency clause. Afterward, the inspection takes place and if there is any issue with the home, an inspection contingency allows the buyer to rethink the sale. The buyer can later choose to renegotiate the property’s price with the seller, or back out of the deal entirely.
Additional inspections for issues such as radon, mold & mildew, asbestos, lead, and chimney structural security can be done at request.
Home inspections are especially important for investment properties as they can strictly affect the profitability of the asset. A good inspection can alert the investor of issues that will require repairs and affect profitability.
Last but not least, there is a big difference between home inspections and home appraisals. Home appraisals estimate the value of a property while inspections check its condition.