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What Investors Should Know About the Home Inspection Process

Scott Gibson
Updated: March 27, 2024 9 min read
What Investors Should Know About the Home Inspection Process

A home inspection doesn’t take long, and understanding the process means it won’t take longer than necessary. But why is a professional home inspection so vital in real estate investment? Here, we’ll explain the home inspection process and answers the essential question: How long should a home inspection take?

As the adage goes, you cannot judge a book by its cover. Successful real estate investors know why it’s wise to avoid judging a property by its paint job. Below the seemingly pristine surface is an incredible array of risks and potential issues.

For example, discovering faulty wiring, a leaky roof, a sinking foundation, or structural issues could cause financial disaster down the line. You may end up with a list of constant repairs, unhappy tenants, and a money pit.

Therefore, inspecting the rental property you are about to purchase is one of the most critical steps in the due diligence process.

Understanding the Home Inspection

A home inspection is a detailed assessment of a property’s condition. A professional home inspector assesses various aspects like structural integrity, plumbing, electrical systems, and safety hazards. They then prepare a detailed report with descriptions and pictures of issues. The report helps you make an informed decision about purchasing the investment property.

Knowing how long a home inspection should take helps with your closing timeline. The inspection contingency gives you time to negotiate repairs or cancel the purchase agreement if the property fails the inspection.

The Home Inspection Process

The entire inspection process shouldn’t take longer than two hours. However, the inspection time depends on various factors. 

For example, a four-point inspection takes less than an hour. It checks electrical, roofing, plumbing, and HVAC. However, an in-depth inspection includes all structural elements, the foundation, and an interior and exterior assessment.

A detailed home inspection checklist typically includes:

  • Foundation: Checking the foundation is a key area in the home inspection report. Severe flaws in the foundation have profound implications for the stability and safety of the investment property. The professional inspector will assess the foundation by looking for signs of cracks, settling, and water damage.
  • Structural components: The inspector pays close attention to the property’s structural elements. They look for signs of sagging, bowing, water penetration, poor drainage, incorrect door framing, or window alignment. 
  • Roof: A visual inspection of the roof includes the state of the shingles, vents, flashings, gutters, skylights, and chimneys. Also, the roof’s age is a crucial factor, as roof replacements are expensive.
  • Attic: The inspector looks for evidence of leaks or water damage from the roof, skylights, or chimney flashings.
  • Heating, ventilation, and air conditioning systems: The HVAC system is a critical component in the home inspection process. The inspector visually inspects that the furnace, water heater, fireplace, chimney, and air conditioner all work correctly. 
  • Electrical systems: This part of the house inspection process checks the up-to-code condition of the wiring. The inspector also checks light fixtures, grounding switches, and circuit breakers in the electrical panel. 
  • Plumbing system: During the inspection, the inspector checks drainage systems, faucets, and vent systems. They also look for signs of damaged or leaky pipes.
  • Interior inspection: A visual inspection of the home’s interior assesses its general condition. Issues on the inspection report include cracks, signs of water damage, and if walls and ceilings appear straight.
  • Exterior inspection: An inspection checklist for the exterior includes assessing:
    • Exterior doors
    • Condition of driveways, walkways, patios, and decks
    • Drainage
    • Proper clearance between ground and siding
    • State of electrical outlets and lights
    • Condition of exterior paint
  • Basement: The inspector visually assesses signs of previous flood damage or water penetration. Black patches on basement walls are usually signs of mold. 
  • Garage: If a garage is attached to the property, the inspector will check its condition. Elements for assessment include the garage door, ceiling, framing, windows, and foundation. They also check the electrical systems to ensure the wiring is up to code.
  • Appliances: A detailed report includes all built-in and freestanding appliances, including the stove, refrigerator, washer and dryer, and dishwasher.
  • Safety and security features: Home inspectors check to ensure that carbon monoxide and smoke detectors meet state regulations. They also check that the stairs, handrails, and guardrails are securely fitted and don’t pose any safety risks.

What a Home Inspection Doesn’t Cover

An average house inspection doesn’t cover every aspect of the property. Therefore, you may need to arrange additional inspections to assess the condition of the following:

  • Asbestos
  • Lead paint
  • Toxic mold
  • Radon gas
  • Pest control
  • Alarm systems
  • Lethal mold
  • Buildings on the property, like a detached shed or garage

If termite infestations are common in the state where you plan to buy the investment property, arranging a termite inspection may be worthwhile.

Should You Do Your Own Home Inspection?

Do not conduct your own inspection unless you are a licensed, qualified home inspector. Here are three reasons why:

1. Not all real estate professionals have extensive knowledge of the construction industry. For example, you may lack the experience to determine if a crack in a wall is cosmetic or structural.

2. You may find it difficult to stay completely objective and unattached in the homebuying journey. This could impact your return on investment in the long run.

3. An unofficial inspection by an amateur may not be valid in a home inspection contingency, so you may be forced into buying an unsuitable property.

Of course, you should walk through the property and ensure you notice no obvious red flags. Then, if you think the property is worth doing due diligence, spend the money on an inspector. However, arrange for a real, licensed home inspector to conduct the official inspection.

How to Find a Home Inspector

The easiest way to find a home inspector is to ask your real estate agent for a recommendation. They probably know dependable home inspectors. If you don’t have an agent or receive suggestions, ask other local real estate investors, agents, mortgage professionals, or property owners.

Speed is critical. Depending on the purchase and sales agreement, you may only have a week to 10 days to arrange the inspection.

Here is a typical inspection timeline:

  • Arranging the inspection: 1 to 10 days
  • Typical home inspection time: 2 to 4 hours
  • Receiving the comprehensive inspection report: 1 to 2 days

Remember, the clock is ticking when you get the property under contract. Therefore, try to get the inspector on to the property within four days of mutual acceptance.

Preparing for a Home Inspection

A typical home inspection will go faster if you and the seller are well-prepared. It’s vital for the seller to declutter and clean the property, ensuring the inspector has access to all areas, including crawl spaces. The seller should have documentation of recent repairs or renovations. Most importantly, ensure utilities are connected so the inspector can inspect all systems.

Should you attend the home inspection as the buyer? Absolutely. After all, you’re paying for it—so why not get your money’s worth? Walk, crawl, climb, and touch every inch of the property as the inspector does. Ask the inspector questions. This way, you get the best idea of potential issues with the property.

The inspector’s job is to explain the property’s condition in detail. Usually, they can tell you the severity of the issues in simple language. However, the information may not be as clear when reading the report. For example, after the inspection, you’ll receive a 30-page—or longer—report. It’s full of technical jargon that may be tricky to understand.

Even from the report, you may not realize how bad something is. The report could say something scary like “illegal and hazardous wiring in bedroom two.” But if you can’t ask the inspector questions, you might not realize it’s a minor issue requiring a 30-second repair. So being there, asking questions, and taking photos can help you make an informed purchasing decision.

How Long Should a Home Inspection Take?

An average home inspection should take two to four hours. However, the inspection time depends on the property size, structure, and components. For example, inspecting a condo may take only an hour. But a large home could take up to six hours. You should receive the report within two days.

Factors influencing the duration of a home inspection

Ideally, the typical home inspection shouldn’t be too long. Factors affecting the inspection time include condition, accessibility, and documentation availability. Also, complex properties may require more time to complete the detailed home inspection checklist. 

Factors to consider include:

  • The size or complexity of the property: Larger homes with several bedrooms and bathrooms require more time for a detailed inspection. Intricate layouts or unique features can also extend the inspection time.
  • The age of the home: Older homes or properties in poor condition typically have more complex issues that get flagged in the inspector’s report.
  • The home’s condition: Previous issues with the property could extend the inspection time. For example, structural issues, previous flood damage, or signs of leaks require further investigation.
  • The home inspector’s experience: Experienced inspectors may work more efficiently, potentially reducing inspection time. A startup inspector may take longer because they lack the expertise to make quick, accurate assessments.
  • Major systems: The number and complexity of major systems in a home impact the time it takes for inspection. For example, a complex HVAC system will take time to inspect thoroughly.
  • Environmental factors: Home inspectors typically don’t check for mold, lead paint, radon gas, pests, or other environmental conditions. However, these signs can indicate more serious structural issues requiring more inspection time.
  • The weather on inspection day: Bad weather can cause a home inspection to take longer than the typical two to four hours. Heavy rain, strong winds, snow, or extreme heat can impact how quickly the inspector can work.

How Much Does an Inspection Cost?

The average home inspection costs $340. However, the final cost depends on several factors, such as property size and location. The cost of a home inspection can increase if you want a special home inspection. This type of inspection can add between $50 and $1,300 to the cost.

Special home inspections include:

  • Termite inspection
  • Septic inspection
  • Mold, radon, or asbestos testing

For larger investment properties, home inspection companies usually charge per square foot. Therefore, a small multifamily property might cost up to $1,000. Larger multifamily properties with five or more units get more expensive the larger they are.

Instead of worrying about the cost, consider the value and peace of mind a comprehensive home inspection will bring.

The Home Inspector’s Report

A home inspector’s report typically includes detailed findings on the property. It will consist of assessments regarding structural integrity, electrical systems, plumbing, HVAC, roof condition, and safety issues. The report also provides detailed descriptions of any problems discovered, accompanied by photographs and recommendations for repairs or further evaluation.

Most home inspection companies prepare their final report in 24 to 48 hours after the inspection. However, in rare cases, the report may take longer if they discover major defects.

The inspection report is one of the key decision-makers in the homebuying process. Despite costing a few hundred dollars, the report can save you hundreds of thousands of dollars if it helps you avoid buying a property that becomes a financial black hole.

Home Inspections and Prices

A detailed home inspection report is a great tool that gives you leverage when negotiating purchase prices. If the report flags significant issues, you can usually do one of the following:

  • Negotiate with the seller to resolve the repair issues before the final sale.
  • Lower the purchase price.
  • Get the seller to pay closing costs.
  • Walk away from the deal.

However, the purchase agreement must include an inspection contingency to use the report as leverage in price negotiations.

Home Inspection Example (Case Study)

What type of information can you read in a detailed home inspection report? Let’s look at an example of a typical report.

First, the report has the homeowner’s name, address, and contact information. Next, the report may have a glossary to define terms. This helps you determine if a property component is acceptable, needs monitoring, has minor defects, requires repair, or is hazardous.

For simplicity’s sake, we’ll not publish a complete report here. But let’s look at a case study, showing the report an inspector wrote about the roof.

  • Roofing
    • 1.0 Asphalt Shingle roofing at all areas of the home
      • Estimated age of the roofing material = 25 Years (Estimated roof lifespan is 15-20 years).
      • Two or more layers of roofing noted. At the next reroofing, the roof surface will need to be stripped.
      • Deterioration in asphalt shingle and surface nailing, missing tabs, and surface areas of the roof show signs of cracking.
      • Recommend obtaining estimations for roof replacement.
    • 1.1 Plumbing Stacks
      • Prior sealant repairs are noticeable at the plumbing stacks. Maintain seal as needed. Anticipate additional repair or replacement needs when reroofing.
      • Roof (Drip Edge)
      • No drip edge flashing was installed for roofing shingles (in all areas).
      • Roofing repair is recommended, including the installation of drip edge flashing at the eaves and rakes.
      • Chimney
      • Prior sealant repairs are noticeable at the chimney flashing. Maintain seal as needed.
      • Requires repair or replacement at the time of reroofing.
    • 1.3 Metal Chimney (Furnace)
      • Inspection of the chimney’s exterior surfaces, unless otherwise noted.
      • Recommend an annual sweep and cleaning of all chimneys and flues.
      • Recommend a Level 2 evaluation at this time if the annual service has not been performed.
    • 1.4 Fascia/Soffit/Trim
      • Areas of deterioration noted.
      • Recommend periodic repair and painting as needed to maintain.
    • 1.5 Gutters
      • Severe leaf and debris accumulations were noted in the gutters.
      • Recommendation: Check all gutters for damage, blockage, or overflow at least twice annually.
      • Recommendation: Install gutter guards to prevent leaves and other debris from accumulating quickly.
    • 1.6 Downspouts
      • Subgrade routing of downspouts has been noted in some areas of the home. Verify and maintain clear drainage at all times so water flows away from the property’s substructure.
      • Downspouts terminate at the grade adjacent to the foundation wall.
      • Recommendation: Extend downspouts to divert water further away from the foundation.

Along with the issues identified, the home inspector included pictures to highlight the problems.

Final Thoughts

A home inspection should only take two to four hours. However, a few hours and a few hundred dollars can prevent you from investing in a property with potential problems and significant repair issues. Only a detailed home inspection report can reveal the actual condition of the property’s structure and components.

Armed with a home inspector’s report, market research, property valuation, and cash flow projections, you can make an informed decision for purchasing an investment property.

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Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.