(Note:  This article pertains to home inspections in New Jersey, but is nonetheless applicable to other jurisdictions.)

Home buyers have a lot to think about when shopping for a new home. Questions like, “Is this the best deal?”, or, “Can I afford it?”, or, “Will I be happy owning this home?” are common. Once an agreement of sale is signed, hopefully these questions have been answered, but then there are likely a new set of questions, like “Will my mortgage be approved?” Or, “Is the home I am buying in good condition?” A professional home inspection is intended to be the means by which a home buyer can gain a measure of additional comfort in answering this last question.

While most buyers know that a home inspection is part of the “due diligence” process of a home purchase, many buyers don’t fully understand what a home inspection involves. The assumption may be, incorrectly, that a home inspection will uncover any and all issues that would make a home less-than-perfect. This assumption can provide buyers a false sense of security, and provide unrealistic expectations as to conditions. The intent of this article is to provide some answers, help guide your expectations and educate you in what you should expect from a home inspection.

1. A home inspection is a generalist inspection. Think of it in similar terms as you would a check-up by your family doctor. It is not intended to be technically exhaustive, and no invasive techniques are used (such as cutting open a section of sheet rock to examine the interior of the wall, or disassembling an appliance). If issues that require more rigorous diagnosis or testing are needed, your home inspector will recommend that a specialist be consulted to perform additional diagnosis or testing.
2. A home inspection is a visual inspection of the home’s components and systems. While a home inspector will use tools such as a moisture meter, combustible gas detector, microwave tester, carbon monoxide detector and outlet tester, most of what they do involves visual inspection techniques. Hidden or latent defects that have no outward indication of failure or damage will not be able to be reported. The buyer may discover some of these hidden issues later, for example during renovations or when equipment is being serviced. This may be because the seller hid the issues, but most often the reason is that they were undetectable by normal inspection protocols.
3. A home inspection is a snapshot of conditions found on the day of the inspection. Some defects do not reveal themselves on the day of the inspection, either because the inspected device is valved off or switched off (like outside showers and air conditioning in the winter) or because the defect occurs sporadically, such as a toilet float that “hangs up” occasionally. In either case, it possible that a defect is not identified because it was not evident by generalist inspection techniques on the day of the inspection. In cases where the inspector is unable to evaluate the system or component, he or she is bound to note this in the inspection report.
4. A home inspection report describes the components and systems inspected and their condition. Your home inspection will identify items that the inspector finds are defective and those items that need maintenance service. Although not required by the New Jersey home inspection licensing law, your inspector may also note what they believe should be done to correct the problem. If the inspector recommends further evaluation by a specialist, you should consider if this next step is appropriate as part of your due diligence, or whether it is more appropriate for the seller to address the issue. Your real estate professional can help guide you through this process.

As much as it is important to know what a home inspection IS, you should also know what is NOT.

1. A home inspection is not all-inclusive. Items such as fire or security alarm systems, smoke alarms, septic systems, private well systems, window air conditioners, and irrigation systems to name a few, are not required to be inspected by a home inspector.
2. A home inspection is not a municipal code inspection. Home inspectors are not code officials and are not required to know construction codes, although some code knowledge is helpful, since construction codes provide a basis for occupant safety. Most important to understand is that there is no requirement that a pre-existing home being sold meets current construction codes. Construction code enforcement is the exclusive domain of the local code enforcement official for new construction, additions and some types of renovation work.
3. A Certificate of Occupancy (CO) inspection does not replace or supplant a home inspection. In New Jersey, many municipalities require the seller to arrange for a “CO” (technically, a continuing certificate of occupancy) just prior to a home sale. Typically, items that are examined by the municipal inspector in a CO are smoke detectors, carbon monoxide detectors, fire extinguisher placement, and the installation of ground-fault protected outlets in kitchens and bathrooms. However, some jurisdictions require a simple fire inspection only, others follow the “rehab code” and thus are more stringent, yet still other municipalities have no CO requirement. The CO is a basic inspection and is by no means comprehensive, such as a home inspection. (It is important to understand that some sellers mistakenly believe that a home inspection defect issue that was not identified in a CO is therefore ok, and does not need to be corrected).
4. A home inspection is not intended to identify which party in a sale transaction should be responsible for repairs, or further evaluation. Whether or not the seller should address the problem is based on several factors, in my opinion. I recommend that my clients who are buyers consider (1) the age of the home, (2) whether the issue is something that was clearly evident prior to your negotiating the price, and (3) if the defect materially impacts the value of the home or the safety of the occupants. Typically, some further investigation should be part of a buyer’s due diligence (for example, to confirm the existence of a buried oil tank).
5. A home inspection report is not the place to find accurate repair estimates. While some inspectors provide an estimated cost to repair, understand that these are order-of-magnitude estimates and that the actual repair cost may vary substantially from the inspector’s estimate. The cost of a repair is only valid when provided by a qualified repair professional, as these individuals have an understanding of the best repair method, cost of labor and materials. Repair costs can be highly are seasonal, depend on the geographic location, and are prone to market conditions.

The last step in a home inspection is most important, obtaining a written report that is understandable and provides sufficient detail to be of use to the buyer in making informed decisions. At a minimum, your inspector should have clearly identified the issues he or she believes constitute a material defect, which as defined by the NJ State home inspection licensing law, is as follows:

“A material defect is a condition, or functional aspect of a structural component or system that is readily ascertainable during a home inspection that substantially affects the value, habitability or safety of the dwelling, but does not include decorative, stylistic, cosmetic or aesthetic aspects of the system, structure or component.”