Home Inspection Primer

How important is a home inspection? 

Performing a home inspection is absolutely essential prior to buying a home.  In fact, a thorough home inspection is one of the most beneficial consumer protection devices available today.

No home is so new or so well built that it couldn't benefit from having a home inspection completed.  Almost every home contains some defective conditions, no matter how well built.  Some of these defects are obvious, but some are only apparent to those who know how and where to look for them.  Defects will be found.  The question is what, where, how serious, dangerous or expensive these may be.

Home inspections are designed to help prevent the homebuyer from loss.  It tells the buyer exactly what they will be getting and outlines any potential future problems.  This enables each homebuyer to make a thorough, informed decision.  After all, statistically speaking, your home is probably your most valuable asset.

How important is a home  inspection perceived to be?

The National Association of Realtors combined with the American Society of Home Inspectors to commission a "National Home Inspection Study" to determine the perceived importance/relevance of home inspections to the housing transaction process.Nationally, 77% of all recent homebuyers obtained a home inspection prior to their purchase. Of these homebuyers, 57% personally requested home inspections, whilst the remainder were following their Realtor’s advice in seeking inspections.Once the choice had been made to call for an inspection, 69% of homebuyers looked to their real estate agent for inspector referrals. And 79% attended and participated in the home inspection.In all, 97% of the buyers polled believe that the home inspection was good value for money.Probably the most lamentable finding of the survey was the fact that only 14% of FHA home buyers nationally (those taking out an FHA loan) called for a home inspection: despite the fact that all these buyers sign a document "For Your Protection Get a Home Inspection" and 92% of their agent’s recommended that they obtain an inspection. Alas, this segment of the buyer marketplace is the one that probably needs home inspections the most. They are usually purchasing at or near the lower end of the market. Many of these may be older homes with components that are near the end of their serviceable life. And the buyers, themselves, can likely ill afford to meet costly repair bills soon after they purchase their home.Fortunately for the FHA buyer in the Albuquerque market, an inspection isn’t usually an immediate out-of-pocket expense. Custom here has it that the seller pays for both the home warranty inspection and the termite inspection. Therefore, FHA buyers in our market tend to purchase with the extra protection that the home inspection-plus-warranty provides. In the long run, if the net effect of this is to reduce the risk of early foreclosure (subsequent to a repair bill that drains the FHA buyer’s financial resources) this has got to be a net positive for our market. From this perspective, let’s hope this local custom survives!

So, Ask for a Home Inspection and feel secure about your DreamSpot

Choosing Inspectors

The first and best way to select a home inspector is to ask your real estate agent.  Their expertise and experience is an invaluable asset during the entire home buying process, and you can benefit greatly from their professional contacts.

Choosing a home inspector is a very important decision.  As it is a relatively new profession, comparatively speaking, many states do not currently regulate home inspectors with licensing and certification.

Because of this, many homebuyers are tempted to select a handyman or a contractor to perform a discount inspection.  This is not recommended.  Because the inspection process is highly detailed, it is important to select an inspector that is thoroughly knowledgeable and experienced.

There are some other things to watch for when selecting an inspector.  Ideally, your inspector should be associated with the American Society of Home Inspectors (ASHI).  Membership in this organization requires that your inspector adhere to the professional standards outlined by this association, and participate in continuing education.

Next to professional affiliation, your inspector should be experienced in the inspection process.  Competency at home inspection is developed from years of hands-on experience.  A contractor's license is important, but not nearly as important as inspection experience itself.

Your inspector should be knowledgeable, thorough, meticulous, competent and detailed.  Knowledge of contracting and building code certification is also helpful.

Michael Spottiswoode

Fax: (888) 500-9590~ Cell (505) 307-0497