home inspection worth it or not?

Question

Hi,

First time posting here but long time listener of the BP podcast. My wife and her siblings inherited a house which is in a trust. We are trying to decide if it is worth spending the money on an ASHI Certified Home inspection or not. Inspections are pretty expensive, $700 to $1000, for a 2000 sq' house. The reason we are considering this is to be able to come up with a fair price for the house based on the inspection results. We are not engaging an agent yet because the house will be offered to family members first, then if no one in the family buys it, we will engage an agent and put it up for sale. Should we spend the money on an inspection?

Thank you in advance.

Jaysen Medhurst · Answer

@Jorge Caceres, if all you need right now is a value, I'd wait on the inspection. Get a Broker's Opinion. They're cheaper than a formal appraisal and will be give you a good sense of what the place is worth. Plus you'll have an agent queued up if you do decide to sell.

Falon Sexton · Answer

@Jorge Caceres If you have specific concerns with plumbing, roof or electrical you may want to consider calling around to local companies and have someone come out and give you an estimate on updating/replacing anything you are concerned about.

Frank Wong · Answer

You get what you pay for in home inspections.   In the Bay Area, a home inspection is around $500-650 depending on the size of the home and a termite report is $220-300.  Getting the inspections are important if you are going to sell a house.  You want to know where the house stands and don't want any surprises while you are in contract.  You don't have to wait to speak to an agent to get the ball rolling.

Jorge Caceres · Answer

@Sam Shueh Thanks for the info. In San Francisco I am getting quotes of $650 and above for the general inspection and $500 for the termite report. Sounds like I should continue shopping around.

Sam Shueh · Answer

In Silicon Valley the termite and property inspections(2) rarely goes over $500.

Jorge Caceres · Answer

@Jaysen Medhurst Thank you for your answer and I agree with you. After reviewing an example report, most of the issues included in those reports are things that more than likely will all be replaced as part of the rehab in an older house anyway.

home inspection worth it or not?

Most Popular Reply