Making the Most of a Home Inspection

While the other half of The Shay Group (my husband, Scott Shay) was out at an inspection yesterday and I was watching the kids, I got to thinking about going through the inspection process as a home buyer. Choosing a good home inspector is vitally important when buying a home, but it's also critical to know what should--and should not--be part of this process.

Choosing an Inspector
Fortunately, the rules have changed and home inspectors are now required to undergo education and licensing requirements. (Used to be that an inspector just had to create a business and basically say "I'm a home inspector.")

The very first thing you should do is ask around. Ask anyone you know who has bought a house in the last year or so who they used, and if they liked their inspector. Check around and get a few referrals. You should be able to call and compare at least two or three. You can also ask your Realtor for referrals and he or she should have a few you can try as well.

Next, check to make sure the inspector is licensed. You can look on the Washington Department of Licensing website here. Just choose Home Inspection in the dropdown menu. If the inspector is properly licensed, you'll see their status listed as "active". So, now that you know the inspectors on your list are licensed, get to know their services. Call the inspector and ask about:

• Rates and what's covered in the inspection
• What their report looks like
• How long it takes to get the report
• What his or her background is (the best for you is one with construction trade/building experience)
• Names and contact information of recent clients you can contact.

Then, contact those referrals! Ask how they thought the inspector did and if they were satisfied with the report. You may also want to check Angie's List to see if there are reviews posted.

Finally, choose the inspector that you liked best! After chatting with a few, you should have a good feel for his or her personality and work style. Remember, this inspection is probably going to cost you $300-$500 or so, and you want to make sure you're working with someone who you trust to answer all your questions and work in your best interest.

During the Inspection
A home inspection will typically take around two or three hours, depending on the size and condition of the house and how many questions you have. Plan to clear half a day to make sure you have enough time. While the inspector is working, ask questions! Again, this inspection is for you, so make sure you get what you're paying for. If you don't understand something, ask the inspector to clarify.

What's Next?
After your inspection is completed, you'll probably receive a detailed report from the inspector covering the issues with the property, both big and small. This inspection report could cover everything from plants being too close to the house (potential for water damage) to major structural issues like a foundation that needs replacing. As a buyer, it's your decision how you want to deal with these issues.

Major stuff you will probably want to negotiate with the seller to fix, or perhaps negotiate a seller credit or price reduction to cover the costs. For example, if you're looking at a roof that needs to be replaced soon, it's fair to negotiate with the seller to knock a few thousand dollars off the price or concede some proceeds at closing.

With the little stuff, you can either ask the seller to fix it or have it professional fixed or you can just do it yourself later. However, one important thing to note is while it may be tempting to require the seller to fix everything called out in the report, I generally advise against it. If the house is older (or maybe not even very old), there will be things that need fixing.

Those little scratches, dents, and worn spots are what happens when we live in a house. Requiring a seller to make a house basically perfect tends to just put them on the defensive, so this is a case where it's best to pick your battles. That said, there's nothing wrong with asking the seller to fix some of that minor stuff as a gesture of goodwill and not including it in the contract. Many times, they will go ahead and do it.

The inspection phase of home buying can be a stressful time, but it's so important. Skipping an inspection or blowing through it without paying much attention can cost many thousands of dollars down the road, so make sure to take your time, get all your questions answered, and as my favorite HGTV personality Mike Holmes says, make sure the house you buy is made right!