Buying investment property involves spending your hard-earned money in the hope of making a good return in the future. To enhance your chances of success, it is very important to mind your due diligence. A home inspection is a critical, but often overlooked part of the home buying process. An inspection will help you identify potential problems in a property, and give you a good idea of the future maintenance that might be required. This could save you thousands of dollars in unanticipated repairs.
So, What Exactly Is Home Inspection?
A home inspection is a thorough assessment of a property’s mechanical systems and physical structure. It is carried out by a qualified and licensed home inspector who checks for problems and potential problems.
A home inspection usually occurs after the seller has accepted your offer, but before you make the payment. As a home buyer, you need to include an inspection contingency in your offer which allows you to ask for repairs or walk away based on the revelations of the inspection report.
This comes in handy when you plan to start a rental property business. You may include inspection costs when using your Airbnb calculator for your ROI and revenue projections.
What Does a Home Inspection Cover?
Not all home inspectors check the same things. Since they cover different aspects in their inspection, be sure to find out in advance what is covered and what isn’t.
A typical home inspection will cover the following areas:
- Structure including basement, crawlspace, attic, and foundation
- Plumbing including water heater, plumbing fixtures, water supply, and waste piping
- Roof including eaves, gutters, coverings, and chimneys
- Electrical system including switches, outlets, panel boxes, meter box, lights, and wiring
- Fireplaces
- HVAC systems including ductwork, air conditioning units, and heating units
- Interior including doors, windows, walls, flooring, and other finished surfaces
- Exterior including windows, doors, siding, vegetation, and site grading
You might require separate inspections to check for potential hazards such as the presence of safety and health concerns. This includes the following:
- Sewer
- Asbestos
- Radon
- Termite infestation
- Mold
- Lead piping or paint
Take note that these additional inspections usually require specialized certification, and will therefore come at an extra property inspection fee.
What Does a Home Inspection Report Include?
When the inspection is complete, the inspector should give you a detailed report containing summaries, checklists, notes, and photographs. It might provide an approximation of the remaining useful life of major equipment and systems, as well as that of finishes, paint, and the roof. A home inspection will also include information on recommended replacements and repairs.
The American Society of Home Inspectors (ASHI) has provided a Code of Ethics and Standard of Practice that outlines what should be included in a home inspection report.
How Much Is a Home Inspection?
According to the US Department of Housing and Urban Development, the average cost of house inspection ranges from $300 to $500. However, there are several variables that affect house inspection costs. This includes the following:
- Size of the home
- Location
- Age of the property
- How hot or cold the local housing market is
- The number of inspectors in your neighborhood and how busy they are
- The number of additional services (such as radon testing or mold inspections) required
Fixr.com provides estimated home inspection pricing based on some of these factors.
House Inspection Cost by the Size of the House
The price of a home inspection is often computed by the square footage of the property, which determines the amount of space the inspector will cover and how much time it will take. The following is a table that shows how house inspection cost varies based on the size of the home.
800 sq. ft. $200-$250
1,000 sq. ft. $250-$300
1,200 sq. ft. $300-$350
1,400 sq. ft. $350-$400
1,600 sq. ft. $400-$450
1,800 sq. ft. $450-$500
2,000 sq. ft. $500-$550
2,200 sq. ft. $550-$600
House Inspection Cost by Type of the Home
A small condo will cost less to inspect than a large single-family home. Houses with crawlspaces will cost more to inspect since these are more difficult spaces to reach. Basement inspection costs will vary depending on whether it’s a finished or unfinished basement. Here is the house inspection cost associated with different types of homes:
Tiny home $150-$250
Condo $200-$500
Mobile home $250-$400
Cottage $250-$300
Bungalow $250-$325
Chalet $250-$350
Townhouse $300-$400
Multifamily $400-$600
Single-family $300-$500
House Inspection Cost by Type
You might want a home inspection that checks specific aspects of your home. Here is a chart showing different types of inspections and their average cost:
Plumbing $50-$100
Electrical $75-$100
Windows $75-$150
Insulation $100-$200
Roof $100-$600
HVAC $210-$260
Foundation $500-$1,000
Specialty House Inspection by Type
As mentioned earlier, specialty inspections are usually not included in standard home inspections. There are the costs for common specialty inspections:
Sewer $75-$600
Radon $110-$200
Pool $150-$275
Asbestos $250-$750
Well $300-$550
Septic $300-$600
Lead $350-$500
Mold $400-$800
Soil $400-$1,200
Pest House Inspection Cost by Type
Most homeowners encounter pests at some point, whether small bugs hiding behind floors and walls, or roaches running across the kitchen floor. A pest inspection is crucial so that property buyers can be sure their new home is free of pests. In case pests are found, it would be advisable to have them exterminated immediately to avoid a further spread in the home.
The following are some of the most common pest control inspection prices:
Cockroaches $40-$75
Fleas $50-$100
Rodents $50-$300
Bed bugs $75-$200
Bats $75-$250
Termites $120-$350
Home Inspector Cost
Depending on which home inspector or company you choose, various methods are used to determine fees. While some charge based on the time required for inspection, others charge a flat rate on the basis of square footage. Typically, a home inspection will cost between $50-$80 per hour. A newer house can be inspected in about 2-3 hours, while an older house could take 4 hours or more. This is because older properties have more problems that require a closer look. More time might be required if the home has additional features like garages, gardens, pools, or sewers that need to be inspected.
It is important to remember that the cheapest option is not always the best when it comes to home inspection. Be sure to hire a company or inspector that will do a thorough job, even if you have to pay more for the services.
Questions to Ask Before Hiring a Home Inspector
When hiring a home inspector, don’t make a decision based on house inspection cost alone. The following are some questions you need to ask before hiring an inspector:
Are You Certified and Licensed?
It is always advisable to choose a home inspector that has the professional certification. Here are some of the organizations that certify home inspectors:
- American Society of Home Inspectors
- International Association of Certified Home Inspectors
- American Home Inspectors Training
What Is Your Expertise or Experience?
Being certified and licensed is not enough. It is important to know how experienced a home inspector is before hiring them.
What Does Your Home Inspection Include?
Find out what exactly the home inspection will cover. You could even ask for a sample home inspection report to get a good idea of what to expect.
What Is the House Inspection Cost?
Find out how long the inspection will take and how much it will cost. Compare it with the industry averages to see if you are getting a fair deal.
Conclusion
As a homebuyer, incurring a house inspection cost is inevitable. Do your research to find out what you might have to pay based on the location, type of house, size of the house, and type of inspection needed. Above all, be sure to choose an inspector that is both certified and experienced.
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