Are Home Inspections Worth Their Expensive Price Tag?

Buying a home is often one of the most expensive, longest and riskiest transactions of an individuals life. In competitive markets, home buyers might shop for several weeks or even months before finding their ideal homes.  When their offers are accepted by sellers, they have the opportunity to hire a home inspector to evaluate the homes’s condition before purchasing. Home inspections might seem like just another unnecessary, costly step in the total transaction, but the option exists specifically to protect the buyers investment.
Once buyers are in escrow, home sellers are obligated to inform them of any damages they're aware of in the homes. Buyers should thoroughly review the property disclosure forms for red flags such as illegal or unpermitted remodels, water damage or other issues that may entail costly repairs. If buyers don't find any major concerns, they may choose to forgo the home inspection to save money.
Although it's not required, home buyers can seriously benefit from hiring certified inspectors to examine the structural and mechanical conditions of the homes. If inspectors find significant damage, buyers can retract their offers or renegotiate with the sellers for reduced prices or sales pending repairs. The goal of a home inspection is to enable the buyers to make an educated purchase.
During the inspection, the buyer and buyers agent should follow the inspector throughout the examination asking numerous questions.  Inspectors evaluate home exteriors, from the roofs to the foundations. They look for obvious structural issues, damage and mechanical problems. They tests the interior plumbing, heating and electrical systems. Inspectors might shake the toilet to test its seal or climb into the fireplace to search for flammable materials. Buyers have the right to inquire about anything uncommon, suspiciously repaired or any area the inspector spends focused energy on. Experienced buyer's agents can indicate which issues are most serious, since they are likely familiar with the conditions of the area and the type of problems most buyers walk away from.
Home inspections take approximately three hours to complete, and their price varies based on the size and age of the home. In general, home inspections range from $250 to $500. Larger homes can run from $750 to $1,500. More expensive inspections are usually performed by highly experienced professionals who spend more time on the inspection. Additional termite and radon testing usually cost $75 and $100 extra, respectively.
Afterward, inspectors write thorough reports with their findings. The reports explain specific hazards but don't always indicate the exact cost of repairs. Instead, the reports list items such as the age of the HVAC unit or water heater and the condition of the roof or chimney. From the reports, buyers can assess the homes problem areas and then research the cost and urgency of repairs. Buyers should consult a contractor about the costs of major remodels to approximate the true price of upgrading necessary repairs.
Out of context, it seems obvious that buyers should pay for thorough home inspections to protect their potential purchases. However, buying a home can become financially overwhelming for buyers when they add up their down payments, closing costs, moving costs, pending monthly mortgages, the cost of desired improvements and the additional furniture they will need after moving.  On top of that, add the optional cost of a home inspection paired with a clean property disclosure from the seller. The choice can become difficult when money gets tight. Buyers should question whether they can afford to waive the inspection and risk the potential money pit they might be walking into.
Through inspections, many buyers avoid seriously expensive damages, negotiate fair credits from sellers or reduced sale prices. Occasionally, inspectors find few issues in the homes, proving to buyers that they are making safe purchases. Instead peace of mind worth $500 when the cost of the home is $500,000? With homeownership comes responsibility, and the first responsible step is to spend a small price now on an inspection to save potentially thousands later on repairing damages.