“The understanding of a home’s condition is a fundamental part of determining value, and an inspection helps give you that important understanding,” explains Richard Montgomery, a real estate columnist, in a recent blog. It’s no wonder homebuyers fret over the home inspection process and fear they will buy a home only to find afterwards they are confronting an unexpected, costly repair.

Perhaps because the stakes are so high, homebuyers describe the home inspection process as overwhelming, confusing and intimidating. Adding to the stress is timing, and as I describe in my Homebuyer’s Timeline, a home inspection occurs right after the Attorney Review Period has concluded – relatively early in the homebuying process. With only 10 days to complete a home inspection, it can be difficult for a buyer to cope with the urgency and a myriad of possible repairs.

Here are 5 New Jersey home inspection must-knows which I hope will help guide you through this important process:

1. When choosing a home inspector, do your research and ask for references

Choose an independent inspector, and do your homework to find out about his or her reputation. Ask your real estate agent to provide several names used by previous clients and identify home inspectors who excel at articulating what they are seeing. If you are purchasing a property that is historic, the home inspector should be experienced in identifying issues specific to these types of homes. You should also familiarize yourself with restrictions and building codes in your town, so you can consider any potential structural recommendations by the inspector. Often, the local town hall will provide printed copies of building codes at a minimal cost or you can make an appointment and speak with someone in the relevant department directly.

Do a comprehensive online search and read reviews about your short list of home inspectors. Many inspectors are on Yelp or Angie’s List, and you can read reviews and experiences from people who have used their services. Once you narrow down your list, ask the inspector for the names and telephone numbers of several homeowners who have used his or her services. Call those references and inquire as to whether they were satisfied with the report and the home inspection process.

Home Inspection Tip One: Be sure to choose references who have owned their home for several months or longer, because sometimes problems overlooked by a home inspector can take time to surface.

2. Before hiring a home inspector, ask for a sample home inspection report

Home inspection reports vary greatly in both quality and detail. Ask for a few sample reports and evaluate whether the report includes digital pictures or estimates of repair costs. Is the information in the report organized, clearly explained, and easy to understand? Is it full of jargon? Does it contain enough detail for you to get competitive bids for possible repairs and accurately determine the amount that will go towards a home inspection contingency.

In the sample home inspection report, see if the home inspector mentions appliances. A lot of companies don’t test the appliances, but you need an inspector who does. For example, the inspector should turn on the dishwasher and washing machine to see if there is any damage to the gaskets or other working parts.

Home Inspection Tip Two: Look at the sample report and see what details the inspector records about difficult areas to access like the roof. Most home inspectors are not obliged to get on the roof and inspect it. A basic home inspection only covers observing the roof, which can be done with a cursory glance and may only encompass the periphery. Roof repairs can be very expensive, so you want to choose an inspector who will actually physically inspect the roof.

The understanding of a home’s condition is a fundamental part of determining value, and an inspection helps give you that important understanding. –Richard Montgomery

 

3. Ensure you have the home inspected for hazardous substances

Typically separate from the traditional home inspection, you will also need to hire a licensed inspector(s) qualified to assess whether there are signs of lead-based paint, asbestos, radon, mold or other potentially hazardous substances. Some homeowners also have their water tested for impurities. In some areas, you may need to hire a geologist or structural engineer. Oil tanks, for example, are often hard to detect on a property, so always ask the inspector whether (s)he is trained to look for evidence of buried oil tanks which may leak and contaminate the soil.

Home Inspection Tip Three: Ensure the inspector examines any crawl spaces, which are easily overlooked in home inspections. Mold is a serious issue that can often be identified by inspecting a crawl space. Sometimes, a home inspector can also find evidence of mice, termites, and bats.

4. Attend your home inspection

Depending on the size of the home, the average home inspection takes about three to four hours, and you need to attend. You should also bring a notebook and take your own notes throughout the inspection. When looking for a home inspector, it is essential to find an inspector who can communicate clearly, will take the time to explain issues and not rush. Your inspector should encourage you to follow along with him or her, so you can see and understand the findings firsthand. A good home inspector will also explain potential problems that may not be an issue at the time, but could possibly be problematic later.

Home inspectors can also show you little items such as where the shutoffs are located, in the case of an emergency. It is surprising how many homeowners do not know how to shut off the water, gas, or electricity. A good inspector will also show you miscellaneous items like the location of the furnace filter and can walk you through operating everything from your thermostat to your water heater, dishwasher, and stove.

Home Inspection Tip Four: Ask the inspector how much life he or she thinks is left in the home’s major systems and structures: roof, furnace, hot water heater, and major appliances like the washer and dryer. The inspector may not be able to give you a formal answer in the report, but a good inspector should be able to give you an estimate based on his or her professional experience.

5. Understand the different home inspector licensing requirements for your state

Home inspection regulations and requirements vary by state. An excellent reference site is the American Society of Home Inspectors, www.ashi.org. Some states do not require home inspectors to have insurance, for example, so if your home inspector misses something that becomes a major issue later, you may have little recourse. In some cases, home inspectors are only liable for the amount equivalent to the price you paid for the inspection. Even highly regarded inspectors are only human and can make errors or overlook problems. You certainly should ask about the company’s policy in such situations. Does the home inspection company have errors and omissions insurance? Does the company or individual inspector stand behind the report? Is there any sort of guarantee on the home inspection and how long does the guarantee last? Be aware that many companies ask customers to sign a waiver limiting the home inspection company’s liability to the cost of the inspection.

Home Inspection Tip Five: In addition to checking for proper licensing, hire a home inspector that is bonded and insured in case (s)he has an accident during the home inspection.

If you have questions about home inspections or the ins and outs of the homebuying process, contact Victoria Carter at (973) 220-3050 or email victoria@victoriacarter.com. I would love to assist you.