Home inspections are a crucial part of any property purchase. The world of home inspections, however, can seem a bit overwhelming at first glance. Many home buyers and real estate investors alike might wonder if they’re overpaying and taking on too many services that they don’t need. Alternatively, you might be worried that you’re missing out on important inspections by selecting a cheaper service. Use this guide to figure out how much a home inspection should cost, and whether it’s worth paying a bit extra in your case.
How Much Does a Home Inspection Cost?
Generally speaking, home inspection costs fall within the range of 300 and 500 dollars. However, the average cost of a home inspection should only be used for general reference, since there are many factors that can influence what you end up paying.
The age of an investment property can heavily influence your home inspection cost. Older homes tend to take significantly longer to inspect, therefore representing more work for your home inspector. As well, older homes tend to be more prone to issues in plumbing and electrical wiring, which can make the home inspection process a lot more difficult.
Real estate properties with additional facilities, such as pools and outhouses, will also have a higher home inspection cost. While each of these facilities will have a positive impact on your property’s market value, you should also expect to pay a bit extra to have them inspected.
The home inspection cost of condos is typically less than standard investment properties. Due to the nature of the property, it is often less labor-intensive for the home inspector, making a holistic inspection much cheaper.
Another major factor influencing your home inspection cost is the certification of your inspector. Nearly half of the American states do not have clear regulations about home inspection licensing. You should, therefore, be cautious when hiring a home inspector, and confirm that they are qualified and certified to properly carry out the job. Selecting a home inspector who belongs to a trade association will guarantee that they have the necessary education, qualifications, and licensing to complete the home inspection. In addition to trade associations, you can look into some certifying organizations, such as the American Society for Home Inspectors, National Association of Home Inspectors, or American Home Inspectors Training. Although this might be more expensive (and potentially time-consuming to find the right inspector), it will provide you with a more reliable service.
Related: The Best Home Inspection Tips for Sellers
What Is Included in a Home Inspection?
Almost all home inspection services will cover the same basic components of your home. This typically includes:
- plumbing
- electrical wiring
- HVAC system
- water heater
- roof
- insulation
- structure of the investment property
Home inspections, however, are not uniform, and you should ask your inspector what will be included before deciding to hire them.
Related: The Ultimate Property Inspection Checklist for Real Estate Investors
What’s Not Included in the Cost of a Home Inspection?
There are a number of things that the average home inspection does not cover. This includes things such as an investment property’s sprinkler system, outbuildings, guest homes, and pools. Each of these facilities will require an extra fee to inspect and should be taken into account when planning your finances. With this in mind, it may be worth looking into a package deal from your home inspection service provider. A holistic home inspection, which includes the main inspection and some or all of these extras, may be cheaper if purchased all at once.
In addition to the primary home inspection, you might want to look into some additional screenings. Things like pest inspections and asbestos checks are not within every home inspector’s routine but could be very worthwhile services to add on.
Are the Home Inspection Costs Worth It?
Definitely. Home inspections should be part of every real estate transaction, regardless of the added expense. If a property’s problem areas are not identified before the sale of a property, you may be left with thousands of dollars worth of repairs to take on. The cost of a home inspection will be minimal by comparison to what you may need to pay later on.
This is especially true when buying an investment property. The smart real estate investor needs to be fully knowledgeable about all of a property’s projected costs. As such, it is definitely worth taking on additional property inspection measures, such as pest, termite, and asbestos checks, in order to guarantee you’re making a sound real estate investment. Investment properties that pass inspection can guarantee lower capital expenditures, which easily offset the home inspection cost.
Related: Why You Should Get an Inspection Before Investing in Property
Who Pays for a Home Inspection?
In the majority of cases, it is the responsibility of the property buyer to cover the home inspection cost. It is usually recommended that buyers schedule a home inspection immediately after an offer is accepted by the seller. If the results of the house inspection are not up to par, buyers can then negotiate a lower price for the investment property, or otherwise negotiate the completion of repairs before the purchase. If an agreement can’t be reached, this also gives the buyer the chance to rescind their offer and start looking for a new property.
In order to avoid this kind of scenario, it is often recommended that property sellers perform home inspections prior to listing their property for sale. Even though the home inspection cost would then be carried by the seller, it can potentially be a very worthwhile purchase. This would provide the opportunity to find out a property’s weaknesses and conduct the necessary repairs before selling your house. Quite often, the increase in a property’s market value can substantially offset the cost of repairs.
Is the Home Inspection Part of the Closing Costs?
Unfortunately, the home inspection cost can’t be tagged onto closing costs in most cases. The cost of the inspection will need to be paid for by the property buyer at the time the service is provided. Exceptions can occur, and you should consult your real estate agent to look into your specific circumstance.
Bottom Line
So, how much does a home inspection cost? On average, you should be expecting within the usual 300 to 500 dollar range. But there are a lot of factors which can alter the figure which you should be mindful of when planning financially. Most importantly, though, a good home inspection can save you thousands of dollars in the long run and will be worth the cash investment.