When you buy or sell a house, you’ll likely encounter a home inspection report. You’ll hire a local home inspector who will inspect your house and provide you with a written report of their findings. Since this document can inform you on a number of different issues, it’s important to understand how to read the entire report. As a result, you’ll be able to make more informed decisions as either a buyer or seller.
Why Get a Home Inspection?
What is a home inspection, and why do you need one? When you make any big purchase, it’s important to do your due diligence to ensure you’re making a good investment—especially if it’s something pre-owned. There’s no better example of this than homes, which can have all kinds of problems you’ll probably want to know about before making a deal. There are three general types of inspections, and each is important for different reasons.
Pre-Listing Home Inspections
As a seller, you might opt to get a pre-listing home inspection, which gives you an idea of any problems the home might have. This lets you make any essential repairs and set your price accordingly, probably making for a much smoother sale later on. Pre-listing inspections are optional, but they’re very common among sellers.
Purchase Offer Home Inspections
Buyers often get home inspections as a condition before closing on a home purchase. This gives them a chance to have an objective party inspect the property for any problems. Armed with the knowledge in a home inspection report, the buyer can get a sense of what they’ll be in for if they decide to buy the home.
If any major problems are discovered, such as a shifted foundation, pest infestation, or any of the other many things that fail a home inspection, the report can provide negotiating power and possibly bring the price of the home down.
New Construction Home Inspections
Another inspection type is new home building inspections. These check that a new build is up to code and allow you to double-check the work of the many contractors and companies that work together on a new property.
What Is Included in a Home Inspection Report?
After a home inspection, your inspector will provide you with a document that details issues and their levels of severity. In essence, it’s a summary of issues requiring attention/action and the potential consequences. While each report may differ to some extent, there are some standard components in a home inspection report.
In the first few pages, you can expect your home inspection report to cover general information, including:
Your address and type of home
Who was present at the inspection
Information about the state’s standards for home inspection
Weather conditions during the inspection
The home’s year of construction
Definitions of industry terms
The size of the home
This section may also mention any limitations in the inspection, which usually refers to having a lack of (or no) access to certain areas.
Symbol or Code Key
To make things easier for you, the home inspector usually provides a key that explains what each element in the report signifies. The key will encompass letter codes that denote a component’s condition.
Most home inspection report keys will include the following codes:
I: Inspected—an item that was inspected
NI: Not inspected—an item that wasn’t inspected
NP: Not present—an item that wasn’t present (usually because it wasn’t accessible)
S: Safety concern—an item that is a safety concern
R: General repair—an item requiring a repair
D: Defect—a non-functioning item that needs a repair or alteration
Assessment of Systems and Components
An inspector will focus on the main systems in your house and their conditions, and the report will cover major home components including:
Heating system
AC
Plumbing system
Electrical system
Roof Attic
Insulation
Walls
Ceilings
Floors
Windows
Doors
Foundation
Basement
Note that in some cases, your inspector may not be able to access certain areas if they’re inaccessible or if it’s unsafe. For instance, if you have an extremely damaged or steep roof, the inspector may not be able to access the area for safety reasons.
Photos of Issues
You can expect to see pictures of damaged items, issues, or defects in your home inspection report. These photos can be helpful to the buyer when they’re reviewing the report before negotiating prices.
In some cases, you may see a photo that has funky colors—don’t worry, this is normal! Often, inspectors will use thermal imaging to examine your house, and the photos are useful for illustrating issues that may be difficult to see, such as moisture issues, ventilation problems, or faulty electrical components.
Summary and Problem Ratings
Your home inspection report will include a summary of the issues—which is usually located in the last few pages—and a rating that indicates a general grade on your home’s condition. You’ll also be able to check the codes (e.g., inspected, safety concerns, etc.) that have been assigned to each individual component. This is a great way to get a broader view of a home’s overall condition. Pay special attention to anything marked as “end of life” (especially appliances and other expensive features), as these will likely need to be replaced in the near future.
Michael Marshall - Buyer's Resource Realty Svcs.
