Buying or selling a home is a significant life decision that involves numerous complex considerations. Among the pivotal factors influencing the outcome of a real estate deal, the home inspection often emerges as a critical juncture. While some argue that a home inspection single-handedly derailed a deal, it is likely that unrealistic expectations held by either the buyer or seller may have played a more significant role. In this article, we delve into the heart of the matter to unravel whether a home inspection is the deal-breaker or if it's the expectations of the parties involved that hold the key.

A home inspection is a crucial step in the home buying process. It involves a thorough assessment of the property's structural integrity, systems, and overall condition. The primary purpose of a home inspection is to document the known issues, as well as uncover issues or defects that are not immediately evident to the untrained eye. This information arms both buyers and sellers with a clearer understanding of the property's true condition.

Is the home inspection a deal killer or deal savior? It depends upon your perspective:

Buyers' Perspective: For buyers, a home inspection can provide peace of mind. It helps to ensure that they are making an informed decision and will not be surprised by a bunch of hidden problems after the purchase. If significant issues are uncovered, buyers may have the option to renegotiate the price, request repairs, or even walk away from the deal.

Sellers' Perspective: From the sellers' standpoint, a home inspection can be nerve-wracking. It may reveal issues they were unaware of, potentially impacting the sale price or net proceeds. However, a clean inspection report can also be a valuable selling point, assuaging the concerns of potential buyers and expediting the deal.

The expectations of either buyer or seller or both can be unrealistic:

Buyer Expectations: Unrealistic expectations on the part of buyers can indeed be a hurdle. As they tour the property, their imagination might run wild with ideas of perfection. Even if the inspection report reveals just minor issues, some buyers might react disproportionately.

Seller Expectations: On the other side, sellers may hold onto inflated notions of their home's condition or value. If the inspection report highlights significant concerns, sellers might be reluctant to acknowledge the property's true condition or to negotiate repairs, potentially scaring away potential buyers.

Effective communication is pivotal in ensuring a successful real estate deal. Both buyers and sellers should be receptive to reasonable compromises. Misunderstandings and a lack of communication can exacerbate tensions and turn minor issues into deal-breakers.

Each of the professional parties to the transaction have important roles to fill:

Just the Facts Ma'am: The home inspector’s role as generalist is to simply present objective visual/observable defects and why they are important to remedy without any speculation, subjectivity, or dramatics. To determine the root cause of the problem(s) and recommend solutions (with costs) is the role of specialists.

The Specialists: It is the role of specialists with expertise in specific fields such as plumber or electrician, if called upon, to help determine the root cause of the problem and recommend specific solutions (repair, replace, etc.) along with cost estimates. It is important to get multiple expert opinions, as conflicts of interest and biases do exist with contractors that primarily make money from performing the work.

The Mediators:  Real estate agents play a crucial role in mediating expectations and facilitating the deal. An experienced agent can provide valuable insights into market conditions and help guide buyers and sellers toward a fair resolution.

In the realm of real estate transactions, the question of whether a home inspection is the ultimate deal-breaker or if unrealistic expectations are the true culprits is multifaceted. The truth lies in the delicate interplay between these factors and the individuals involved. A home inspection serves as a revealing spotlight, shedding light on the property's true condition. The specialists weigh in with their opinions.  However, it is the attitudes, openness, and willingness to find common ground on the part of both buyers and sellers that will ultimately help determine the success or failure of the deal.

​As individuals embark on their real estate journey, it is imperative to recognize the role of a home inspection, as well as specialists (if called upon) as tools for informed decision-making. By managing expectations, fostering open communication, and seeking professional guidance, buyers and sellers can navigate the complexities of the real estate market with confidence, ensuring that a home inspection becomes a constructive step rather than a stumbling block. Ultimately, the success of a real estate deal rests not on any single factor, but on the collective effort of everyone involved to help bridge the gap between reality and perception.

The primary reason for a current homeowner to get a home inspection is to help catch small problems before they become big problems. For example, water leaks can often go undetected for long periods of time if the damage is behind walls or in the attic or crawlspace. Home inspectors have the knowledge and tools to help find those type of issues. As homeowner, it is much better on your wallet to repair a minor water leak for $200 than to have it go undetected and incur a potential $2,000 to $3,000 structural repair a few years later.
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Another top reason is for the health and safety of the occupants. Modern building standards are always changing based upon knowledge gained as unsafe practices are revealed (and litigated). It is prudent to stay advised on how your home could be upgraded to improve safety and, where feasible, to perform those upgrades. Sometimes undertaking an upgrade can reduce your home insurance premiums and, depending upon how long you plan to stay in your house, might help to pay for most or all the upgrade costs. So, when considering a major upgrade, it is advised that you also talk to your home insurance company.

Many types of upgrades can also increase the market value of your house. A house that is well-maintained, having had regular home inspections, could be a strong selling point if and when it comes time to sell your home. So, you might want to also talk to your realtor about the potential long-term benefits of getting regular home inspections.

​Buyers are taking on risks when purchasing a property and generally want to take actions that  reduce those risks, which is why buyers represent the bulk of the market for home inspections. The top reasons why buyers should get a home inspection include:

1. To learn much more about the house.

Some buyers may make an offer based upon only a 30-minute or so walk-through of the house, whereas a home inspector will spend several hours methodically examining all the various systems of the house from top to bottom. He or she will look with an experienced eye in all the accessible locations the buyers likely did not study in any detail, such as: the roof, in the attic, inside the utility closet, inside the crawlspace, and (most cases) inside the electrical panel. Even with an “as-is” purchase, it is much better to have professional help to detail the issues / concerns to acquire more information about the house.

The inspector will likely catch many things that the buyer would miss. The inspector is looking for structural problems, health and safety issues, problems with roofing, ventilation, insulation, heating, cooling, plumbing and electrical issues. Since they have probably looked at hundreds of good examples, anomalies (i.e., defects, issues, concerns) literally jump out at them.

A portion of the inspection report is providing valuable informational and proactively answers questions, such as:

• Where the main water and fuel shutoffs are located?
• Where the main disconnect for electricity is located and what is the available electrical amperage?
• What types of siding materials are present?
• Approximately how old is the roof?

 
​You will receive a good overview of the major systems of your new home.

Although a home inspection is visual only and not invasive, most inspectors will employ a variety of inspection tools as applicable to help discover defects and verify their visual and olfactory observations. These are just some of the specialized tools that inspectors may use:

• Receptacle Tester—detects if an electrical outlet is wired correctly. Incorrectly wired outlets are an electrical shock hazards.
• GFCI / AFCI Circuit Testers—allows the inspector to perform realistic tests of Ground Fault Circuit Interrupter (GFCI) and Arc Fault Circuit Interrupter (AFCI) equipped branch circuits.  
• Moisture Meter—reports the percent moisture content of drywall, wood, or masonry. Used to detect if an apparent water stain is likely active or dormant. Wood and other solid materials tend to rot and deteriorate when their moisture content exceeds 20%.  
• Humidity Meter—determines the relative humidity in the air. Just how damp is the crawlspace? Mold starts to grow and insects tend to invade when relative humidity reaches 65%.
• Infrared Thermometer—reports the temperature of an object without requiring contact, such as the temperature of a furnace exhaust vent.
• Carbon Monoxide Test/Monitor Devices—able to detect low-levels of carbon monoxide (CO) in the air below the alarm level threshold of standard home CO detectors. Even low amounts of CO are considered a health concern. CO in the air can be indicative of a fuel-based appliance that may not be burning fuel properly, not vented properly, or has a leak within the heat exchanger.
• Combustible Gas Detector—determines if a combustible gas is in the air, which is a fire and explosion hazard.
• Pole-mounted cameras—useful for inspecting hard to reach areas and roofs that are unsafe to walk upon.
• Aerial Drones—useful for inspecting roofs that are unsafe to walk upon.
• Thermal-Imaging Cameras--senses heat radiation emitted from objects and converts that into a color image. When there are significant enough temperature anomalies at the wall (or equipment) surface, these will then show up as color variations in the resulting image. In this manner, thermal cameras can sometimes be used to detect such things as insulation problems, overloaded electrical circuits, water leaks, and even pest infestations behind walls and ceilings.

Using their practiced eyes and useful detection tools, home inspectors will gather much information about the condition of a dwelling in a short amount of time and relay that to the buyer in a detailed report. If possible, you will want to be present during the home inspection so that the inspector can point out important observations and for you to ask questions. However, try not to interrupt the inspector too much and let them go through their regular routine, which will help the inspector to not miss anything.

2.  To identify safety concerns.

​While home inspectors are not building-code inspectors, they have a similar mission focused on the safety of occupants. Home inspectors sometimes quote international building codes and trade association safety standards as guidance in many important areas of the home inspection. However, those are used only as representative of "modern standards" and not a substitute for local building codes that could be different or even mute on the subject.
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As most people know, building codes change over time. For example, what was considered good practice and safe in 1965, such as using solid aluminum wiring in electrical branch circuits, is no longer considered safe and the building codes everywhere have since changed. In other words, many people were killed in electrical fires and homes destroyed caused by faulty aluminum wire connections and governments reacted promptly to update the rules. Apply that same principal to hundreds of other unsafe building practices that led to property damage and people getting hurt, with subsequent building code additions and changes, to get a sense of what building codes contained in 1965 versus what they cover today.

So, that begs the question, is a home built in 1965 that passed a rigorous building-code inspection at that time safe to occupy today? The short answer is, it depends upon what renovations, repairs, and upgrades were done to the home in accordance to more modern building code standards since 1965. Building code inspectors only perform re-inspections to current codes whenever significant renovations, additions, and repairs to the home are covered by permits. If no permitted major renovations or repairs have been done to the house, or the homeowner or contractor performed work not in accordance with modern standards, many unsafe building conditions could be present.

Home inspectors are specifically trained to look for solid-conductor aluminum branch wiring in homes built in the mid-to-late 1960’s, for instance, as well as dozens of other specific safety concerns that tend to persist in homes. This is a key reason why you want to use a home inspector.

3. To identify potentially costly repairs or needed upgrades.

Most issues that are discovered during a home inspection are minor and should not factor in your decision to purchase. Home inspectors include those into the report to help you get a better picture of the overall condition of the house. However, many repairs, replacements, and upgrades recommended by the home inspector could cost hundreds, thousands, or even tens of thousands of dollars. Those are the issues that you really want to know about as buyer.

If there is an inspection contingency to the purchase contract, the buyer likely has some bargaining leverage with the seller. Focusing on the bigger-ticket repair items, the buyer has five main courses of action, which could be applied selectively to each individual issue:

• Do nothing. If the issue is a safety concern, for example, then the buyer may decide to simply accept those risks and defer the recommended upgrade and associated costs to some indefinite date.
• Take responsibility for performing the repair after the sale. Perhaps the house is a “fixer-upper” for which the condition is already reflected in the home price and that was the plan all along. In which case, the inspection report largely serves to clarify the scope of the repairs and upgrades needed.
• Request that the seller perform selected repairs before the close of escrow.
• Ask for a seller’s credit to the buyer ($) to help pay for the repairs to be performed by the buyer after close of escrow. This could perhaps be the preferred choice of the seller, as it will be likely less stress on them versus having to complete repairs within a short time window.
• Ask for a price reduction on the sale price on the house in light of expensive repairs that were revealed by the home inspection, but not included in the listing description.

It is sometimes a delicate negotiation between the buyer and seller to arrive at a satisfactory resolution. There are tons of variations as well as some rules that need to be followed. It is important for all parties to be reasonable. What is possible can depend on several factors, including market conditions. For instance, if it is a seller’s market and the seller has several backup offers waiting in the wings, the buyer’s bargaining leverage with the seller may be reduced. So, listen to what your realtor is recommending. The sixth possible course of action is, of course, the dreaded "walk away" option that nobody wants, including the home inspector. It is important to note that most home inspectors are well-attuned to this entire process and are often quite interested to hear what the outcome was for their client.

See also:

A Home Inspection, Defined
The Top Three (3) Reasons a Seller Should Get a Home Inspection

For the immediate future at least (i.e., before the robots take over) homes are built and maintained by people and people are, shall we say, less than perfect. As a result, every home has defects, even newer homes, and inspectors have long checklists.

You can think of the inspection report as the equivalent of a grade school report card for your house with the subjects being: foundation, roof, exterior, HVAC, electrical, plumbing, and interior including the attic, crawlspace or basement, and attached garage. The following is one way to interpret the theoretical grades received in each subject:

• Outstanding: No defects were found.
• Excellent: Only minor defects were found.
• Satisfactory (functional but needs improvement): The system or component may be still functional or degraded in some manner. Some prominent issues were found and/or there are some safety concerns for which the inspector is recommending repairs or upgrades.
• Poor (failing): The inspector found one or more “material” defects, which are defined as conditions that adversely affect the value, desirability, or habitability of the dwelling or the safety of the occupants. Some examples of material defects are a wooden deck that is in danger of collapse, an electrical panel with open breaker slot (an electrocution risk for children), or a fuel-based heating system that is showing signs of backdraft (pushing exhaust fumes into the home potentially causing carbon monoxide poisoning of the occupants).

Home inspectors are specifically trained to look for hundreds of types of defects, issues and concerns that may indicate a problem or the need for an upgrade. They create short written accounts in their report of their observations and recommendations for each deficiency that succinctly summarizes: 1) what is the defect/issue/concern, 2) why it is important, and 3) what is a recommended course of action, typically backed up by photographs and sometimes video.

It is important to note that home inspectors are generalists and not specialists in any category. As such, most often their recommendation is for a specialist to be consulted for further evaluation and correction of the issue. Which, in a practical sense, would mean that the customer should engage specialist professionals (e.g., a plumber, electrician, or roofer etc.) to further evaluate the problem(s) and obtain quotes for repairs or upgrades.

It is also important to note that what a home inspector calls out as an issue or recommends as a course-of-action is a professional opinion based upon training and years of experience, but is not binding on anyone.

The home inspector is free to speculate on what could be the possible source of the problem to be helpful, but they are in no way obligated to figure that out. They are also not obligated to determine the extent of the problem. It usually takes a specialist to arrive at a definitive conclusion as to the cause and extent of the problem, sometimes resorting to destructive methods, such as cutting into a wall to find the exact source of a water leak.

The severity assigned to the issue as a minor, prominent (major defect), or material defect is also subjective, although there are industry-standard guideline definitions for what constitutes a “material” defect.

Feel free to enlist another home inspector or industry experts for their recommendations, which could be different. Most home inspectors (as well as specialists) will generally come to the same conclusion about what constitutes a defect or concern, but may differ on the possible cause, severity, or course of action. Ultimately, it is incumbent upon the customer of the inspection report to take into consideration all the available information to draw their own conclusion as to the most appropriate course of action.

The purchaser of the home inspection, most often the buyer, is the owner of the report and is not obligated to share the report with anyone. However, if the inspection is performed as a pre-listing inspection contracted by the seller, the seller may be obligated by law to disclose those items that were not repaired as part of the seller’s disclosure during a future escrow period. Please consult with your real estate agent on the applicable laws in your state. The seller should also take into consideration that a home inspection performed by the eventual buyer is very likely to discover the same issues during an escrow inspection period and then your timeframe as seller to consider and possibly engage in lower-cost avenues to address those issues will be abbreviated. Many sellers find that situation stressful, or for other reasons want to help the escrow to proceed smoothly, which is one of the main reasons that pre-listing home inspections are also performed for sellers.

See also:

Top Three (3) Reasons Buyers Should Get a Home Inspection
Top Three (3) Reasons Sellers Should Get a Home Inspection