Buying your first home can be nerve-wracking, not to mention downright expensive. While it may seem tempting to cut your purchase expenses, resist the urge to skip the home inspection.

Why?

A home inspection helps you identify health, safety, and repair issues that you may need to ask the seller to remedy prior to closing. It can also uncover items you may have to remedy in the future (such as an aging roof, furnace, or water heater). Some items may be incredibly small; however, the inspector’s job is to find out as much information as they can about the property—for you.

Think of the home inspection as an insurance policy. It is a necessary expense in buying a home. In some cases, the inspection may just save you from making a costly mistake when purchasing that home.

Full transparency, the inspector may not be able to find all issues with a home—leaky pipe in the wall, for instance. However, they normally will find evidence of issues and note them for further investigation.

The inspector follows a checklist. They may suggest additional inspections by other qualified professionals in areas such as:

• Roof
• Foundation
• HVAC
• Sewer scope (I highly suggest you do this in any home that has clay piping)
• Plumbing
• Pest control

Point blank, the inspector is an invaluable part of your home buying process. So, let’s go over how to find a great inspector and what to do with the inspection report.

How to Find a Great Inspector

A great inspector is worth their weight in gold. You want to find a reputable inspector that is familiar with issues in the homes in your area.

Here is how to generate a list of inspectors to reach out to:

1. Do a web search “home inspectors in [submarket].” Create a shortlist of inspectors and look at their BBB reviews and Yelp reviews.
2. Look at online forums to find inspectors who are active in your area.
3. Ask your real estate agent and/or property manager for referrals. Get a shortlist of three or four people that they have regularly used.

How to Vet a Home Inspector

There isn’t a national certification to be a home inspector, and requirements vary state by state. In some states, the requirement to be a home inspector is just 60 hours of education, while in other states it’s 400. Remember, we don’t just want an inspector, we want a “rockstar” inspector. Look for someone who has done more than just a three-day course.

In order to save yourself some time, try to find the answers to these questions:

Experience & Qualifications

1. What kind of certification and training do they have?
2. What kind of experience do they have in the home/area you are purchasing?
3. What type of inspections do they do? Single-family, multifamily, etc.

Location & Service Area

Where do they do the main part of their business? Again we want to find someone who is very familiar with the asset type you are purchasing.

Specialty

1. What inspections do they do?
2. More importantly, what will they not inspect?
3. For a fee, what additional inspections will they arrange for you? Again, here’s a short list of things you might want to add on:

• Roof
• Foundation
• HVAC
• Sewer scope (I highly suggest you do this in any home that has clay piping)
• Plumbing
• Pest control

Timeline

1. How long does the inspection take?
2. Can you, your Realtor, your property manager, and your general contractor be present?
3. Are you entering the home only one time, limiting the disruption to any tenants?
4. How long will it take to produce a report? This is important in case you have to meet an inspection objection deadline for your purchase agreement.

Cost

1. What do they charge for the main inspection?
2. What do they charge for add-on inspections?

Scope

Will they send an example of the type of report they do? This is a case where you want more information, not less.

When to Call a Home Inspector

It’s worthwhile to start the search for an inspector once you are about 90% sure you are going to purchase a home.

Why? You can actually use the inspection objection clause as a negotiation tool to beat out other buyers. Personally, I’ve won many deals because I know my inspector can complete the inspection and present a resolution in five days or fewer, so the seller can rest assured I won’t drag out the purchase process.

You’ve Obtained the Inspection Report, Now What?

Once you get your report, you should review the findings and act quickly to decide if you are going to proceed with the deal. The last thing a seller wants is to know that the inspection happened and then have to wait days or weeks to figure out if the deal will hold together.

Here are some high-level steps to take once you have your report in your hand.

1. Post-Inspection Review

Have a post-inspection review with the inspector and ask:

• Do you suggest any additional inspections?
• What fire, water, health, and safety hazards exist?
• What do you think the seller should repair now?
• What would you do if you were the one buying this property?
• What else do you see that could go wrong?
• How much do you think repairs will cost?
• Will the trees on the property be a hazard down the road?

2. Pass Along Report Findings

Review the report findings with your Realtor, property manager, and contractor to determine whether you want to continue pursuing the deal.

Inspection reports can look really scary sometimes (especially on older homes), so be sure you are engaging with your real estate agent to help you sift through the details and determine what is worth taking on and what is a dealbreaker. Unless there is a complete dealbreaker I refuse to handle, I’ll proceed onto the next step of the negotiation process.

3. Determine Who Should Be Responsible for What

Break out the report into what you want to ask the seller to fix and what you want to fix.

Your Realtor can help you come up with the best negotiation strategy with the seller.

4. Present Objection Report to Seller

Provide your inspection objection report to the seller with your Realtor as quickly as possible.

Clearing this due diligence hurdle quickly with the seller will build up an immense amount of goodwill and respect as you move through the purchase phase. Again, I aim to resolve my inspections quickly in five days or less.

5. Expect Negotiations

Be responsive to the seller as they will most likely counteroffer. Before accepting or rejecting their counter, pause and ask the seller this question (if you haven’t already): “What do you need to seal the deal?”

The seller should tell you exactly what they need to be comfortable moving forward.

6. Sign Inspection Objection Agreement

Don’t forget to sign the inspection objection and/or the inspection resolution amendment. The last thing you want is your hard-earned earnest money disappearing because of a missed deadline or signature.

Pulling It All Together

The inspection process can seem incredibly daunting, especially when you get a large report with a lot of “red ink” all over it.

Remember, this report is not only part of your purchase insurance policy (along with the appraisal), but the inspector report can also be a negotiation tool for a far better deal.