Thursday, August 8, 2013

I'm buying a home. Should I get inspections?


The short answer is, "Yes probably." There are many different unique circumstances, like the age and condition of the home, is it owner occupied, how much cash you have for inspections, down payment, closing costs, insurance, etc. that determine if you decide to have inspections and how thorough you want to get.

So now what inspections should I get?

I will recommend all of them all the time, but here are the most common.

1. Whole house: In Indiana this is done by a licensed professional whole house inspector. He/she will look at all the major components of the home. Electrical, interior plumbing, heating & air, windows, doors, roof, water heater and more. He/She will check all the outlets, open the windows, turn on all the water and flush the toilets, and are very knowledgeable and thorough. Good inspectors have a working knowledge in all of these components, but aren't experts in any. If they find something they believe to be wrong, they will recommend that a licensed professional come look and make a recommendation to repair. This inspection generally costs $250.00 - $450.00 depending on the company you hire, the size of the house, and if there are any other buildings or structures to inspect. Whole house inspectors often get paid upfront and I highly recommend that you attend the inspection with them. It generally takes 2.5 - 4 hours and you will receive a 50 - 100 page report about the property within a day or two.

2. Wood destroying insect: The cost of this in our area is $45.00 - $65.00 and the repair costs if bugs are found can reach into the thousands. This inspection is relatively quick (less than an hour) and you generally have the report the same day that will say either it has bugs, it doesn't have bugs, or it has had bugs before but it's been treated.

3. Radon: Check out http://www.epa.gov/radon/pubs/citguide.html for more info about radon. This inspection is a kit that is placed in the lowest level of the home, takes 48 - 72 hours, and gives a rating on how much radon is in a home. If the levels are above the established healthy level, it can be mitigated by sealing any foundation cracks and creating a sealed pit with a pvc pipe that runs out of the home with a little fan inside the pipe that runs all the time. Then the home is retested to make sure the level is safe. Most radon mitigation companies offer some sort of guarantee. This inspection generally costs $125.00 - $175.00 and mitigation costs between $750.00 - $1,250.00.

4. Private well water quality: If you're buying a home on public utilities this inspection probably doesn't apply. Most city water comes from wells also, but the municipality will check the quality on a regular basis. If you buy a house on a private well, the whole house inspector should get a general knowledge of the well function when they test the plumbing in the home. For information about your well, go look at it. Most well drilling companies put a cap on top with their name and phone number and can tell you how deep it is, how deep the pump is, etc. As far as the water coming out of the well, the whole house inspector or a private lab will take a water sample and perform an analysis. They generally test for Nitrates, Nitrites, and Bacteria. Then for an additional cost you should have the water tested for lead, arsenic and a hand full of other metals. In our area, if there is a problem, it's generally one of the above. Check with a professional in your area for any other tests that should be done. If the Nitrates, Nitrites or Bacteria are above the maximum safe level, the fix is relatively easy. Have the well chlorinated and retested, and problem should be solved. If the lead, arsenic or another metal is too high, the fix is more costly and involves filtering the water similar to a reverse osmosis system. The water quality test generally costs $125.00 - $175.00 depending on the scope of the test. Well chlorination costs less that $50.00 and the other systems can run into the hundreds and even thousands of dollars.

5: Private septic: Again if you're buying a home with municipal sewer service this won't apply. Septic systems are customized to each home based on soil types, number of bedrooms (in our area) and other factors. In Indiana the septic system is approved and code is enforced by the county health department. The requirements may vary from county to county.  Each septic system is different and just because "It's always worked..." for the current occupants doesn't mean it will pass inspection, and they can be really expensive. The last one I had to have replaced cost over $13,000.00. I asked the owner of a local septic company what was the most expensive one they've ever done for residential and he said $27,000! An average cost, however, would be $5000.00 - $7000.00. The cost of this inspection is +/-$350.00. They pump and inspect the tank, check baffles, locate the field system, etc. Also most county health departments keep a drawing of the systems for each property.

6. Furnace / AC service: Beyond the whole house inspection, it's often a good idea to have the furnace and air conditioner serviced by a professional heating and air company. They will not just operate the system, they will also take the system apart, clean the components and will have greater access than the whole house inspector to identify any problems, and it will make the system work better and last longer. It costs approximately $125 - $150 each and some companies offer an annual service contract and offer a discount and other benefits if you sign a contract.

7. Structural / Foundation: These are actually two different inspections that are often used interchangeably. Foundation is just that, the foundation of the home. If you feel like there is a problem with the foundation, a reputable general contractor can assess the situation and make recommendations for repair. Any discovered structural issues can also usually be addressed by a general contractor. Most engineers won't do residential. Cost will vary by scope of work.

8. Specialty inspections: Pools, hot tubs, irrigation systems, piers, pond aeration systems, chimneys, fireplaces, interior or exterior wood, pellet or corn burning stoves, mold and other biological contaminants, shops and barns, etc. are other components that won't be covered in any of the above inspections. Qualified professionals should be used to inspect anything you're unsure of.

Please contact me if you have other questions about anything real estate.