Home inspection can be defined as the process by which a home inspector conducts a non-invasive visual examination of a residential dwelling and provides, pursuant to the sale and transfer of a residential building, a written evaluation of the following readily accessible systems and components: heating, cooling, plumbing and electrical systems, structural components, foundation, roof, masonry, structure, exterior and interior components and any other related residential housing components. Though a home inspection includes a careful examination of these systems and their components, it is not a technically exhaustive examination.
A home inspection offers the seller an opportunity to disclose the condition of the home (which is required by law in most states) and at the same time assists potential buyers in understanding the condition of the home so that they may make an informed purchase decision.
The home inspector's role, then, is that of both investigator and educator. Home inspectors determine the physical condition of a home through their visual examination and inform their client (usually the buyer) of the home's condition in a written report.
From there the decision whether or not to purchase is entirely the buyer's, as home inspectors do not counsel clients on the advisability of purchase.
Chief among the purposes for a home inspection is risk reduction—reducing the buyer's risk at the time of purchase by providing a general inspection of a home's grounds, foundation, structure, mechanical systems, materials, and general overall condition prior to the purchase, and to assess the potential for future damage, deterioration, or injury based on the home's current condition.
Career Outlook
The field of home inspection is a rapidly growing business. Nearly every time a home is bought or sold, a home inspection is a part of the transaction. Home inspection is becoming standard practice in the home purchasing process. Qualified home inspection professionals are in high demand, and, according to the U.S. Department of Labor, "As the population grows and the volume of real estate transactions increases, greater emphasis on home inspections should result in strong demand for home inspectors."
Who Are Home Inspectors?
A home inspector may be someone who already has considerable experience and knowledge of residential construction. Others may have specialized knowledge of certain systems such as electrical, framing, air conditioning, roofing, masonry, plumbing, etc. Specialized knowledge is a good starting point, but a well rounded knowledge of residential construction is essential to the home inspector.
However, it isn't necessary to be an expert in all areas to become a home inspector. Even if the home inspector has the necessary knowledge of construction, it is critical to understand how to properly apply that knowledge in the role of Home Inspector and to know how to run a home inspection business. Let's look at some of the things home inspectors do—and don't do—along with the business-related requirements of Home Inspection
What Do Home Inspectors Do?
Home inspectors just inspect—they do not make repairs or offer to make repairs to a home they inspect, even if they are qualified to do so. Such an offer would be a clear conflict of interest. If problems or symptoms are found, the inspector should refer the client to the appropriate specialist or tradesperson for further evaluation.
Any decision about whether a repair should be made, or who should make a repair, is determined by the working of the purchase contract -a legal contract in which one party agrees to buy and another agrees to sell a property that contains terms and conditions of the transaction and is signed by the parties-and the position of the parties involved in the real estate contract, not the home inspector. (The contract and its specifications and legalities will be covered in greater detail later in this course.)
A home inspector is not required to dismantle any equipment or components during the course of an inspection. However, where required for visual inspection, there may be a need for a home inspector to remove equipment coverings.
Home inspector is not a code enforcement official.
In some states, knowledge of national and local codes is required for home inspector licensing or certification, but even then, the home inspector is not in charge of enforcement. However, in some circumstances, it will fall to the responsibility of the inspector to point out blatant code violations, especially if they create a hazard, such as improper electrical wiring that creates a fire hazard
The home inspector reports only on those items that are readily accessible -meaning that they are capable of being reached quickly for visual inspection without requiring the inspector to climb over or remove any personal property, to dismantle, to use destructive measures, or any action which will likely involve risk to persons or property. If there are any areas that cannot be inspected because they are not readily accessible, the fact that they were not inspected along with an explanation of why they were not inspected must be included on the home inspection report.
Home inspectors determine the physical condition of a home through their visual examination and inform their client (usually the buyer) of the home's condition in a written report. He may make suggestions for maintenance, recommend repair or replacement, explain anticipated problems based on current conditions, and give general repair cost estimates. Generally speaking, these are the job tasks of the professional home inspector.
Home Inspection Professional Practice
Who Are the Customers ?
There are thousands mortgage lenders, realtors, relocation companies, real estate appraisers, and attorneys nationwide who could require regular home inspection services. Indeed, thousands of real estate transactions take place every week in the U.S. , including new listings, purchases, and refinances. Real estate agents need home inspectors to uncover construction deficiencies and to protect their liability. Lenders and banks often require inspections for their property transactions. So do attorneys handling divorces, real estate, wills, trusts, and estates. Real estate appraisers and relocation companies also rely strongly on the services of home inspectors.
Though all of those just mentioned are potential clients for the home inspector, most home inspections are conducted under the terms of a sales contract. When a home inspection is conducted under the terms of a sales contract, the inspector typically represents the buyer and has the interests of the buyer in mind.
A well drafted sales contract will include language that gives the buyer the right to have inspections made within a reasonable time frame after the contract is signed. This is often referred to as the contingency or option period. Such language should allow the buyer to negate the sales agreement without forfeiture of earnest money, deposit, or other rights and consideration, if conditions or defects are identified by the inspector that are not remedied or for which the buyer is not otherwise compensated. The language of the contract should allow the buyer to negate the sales agreement without forfeiture of earnest money, deposit, or other rights and consideration, if conditions or defects are identified by the inspector that are not remedied or for which the buyer is not otherwise compensated. The buyer cannot force the seller to make repairs.