What is a Home Inspection?

A home inspection is a limited, non-invasive examination of the condition of a home, often in connection with the sale of that home. Home inspections are usually conducted by a home inspector who has the training and certifications (ASHI or CREIA) to perform such inspections. The inspector prepares and delivers to the client a written report of findings. The client then uses the knowledge gained to make informed decisions about their pending real estate purchase. The home inspector describes the condition of the home at the time of inspection but does not guarantee future condition, efficiency, or life expectancy of systems or components.

A home inspector is sometimes confused with a real estate appraiser. A home inspector determines the condition of a structure, whereas an appraiser determines the value of a property. Although not all states or municipalities in the U.S. regulate home inspectors, there are some professional associations for home inspectors that provide education, training, and networking opportunities (Visit ASHI.org or CREIA.org). A professional home inspection is an examination of the current condition of a house. It is not an inspection to verify compliance with appropriate codes.

History

The first known home inspection company, Home Equity Loss Protection Services dba/H.E.L.P.S.(Glen Ellyn, IL), was originally founded by Christopher P. Nolan and Loyola Professor, Mark Goodfriend. Mr . Nolan was initially inspired by Coldwell Banker Realtor, Carole Kellby, a top producer from Wheaton, IL. He first trained DuPage County Deputy Sheriff, George Wick, as H.E.L.P.S. first official Home Inspector. Years later, the company was officially incorporated in the early 1980s by Jane Garvey, surviving wife of Professor Mark Goodfriend of Glen Ellyn, IL following its purchase from Christopher P. Nolan. As founder of the home inspection business and entrepreneur, Mr. Nolan was inspired to create a comprehensive system of home inspections. He found because as an investor of distressed real estate (then a nationally recognized real estate expert and speaker for Lowry Seminars) he realized a need to have skilled professionals inspect key areas of the home prior to his purchases in order to mitigate the risk of his investments.

Purchase Contract and the Inspection

In Canada and the United States, a contract to purchase a house may include a contingency that the contract is not valid until the buyer, through a home inspector or other agents, has had an opportunity to verify the condition of the property. In many states and provinces, home inspectors are required to be licensed, but in some states the profession is not regulated. Typical requirements for obtaining a license are the completion of an approved training course and/or a successful examination by the state's licensing board. Several states and provinces also require inspectors to periodically obtain continuing education credits in order to renew their licenses.

In May 2001, Massachusetts became the first state to recognize the potential conflict of interest when real estate agents selling a home also refer or recommend the home inspector to the potential buyer. As a result the real estate licensing law in Massachusetts was amended to prohibit listing real estate agents from directly referring home inspectors. The law also prohibits listing agents from giving out a "short" name list of inspectors. The only list that can be given out is the complete list of all licensed home inspectors in the state.

Ancillary services such as inspections for wood destroying insects, radon testing, septic tank inspections, water quality, mold, and private well inspections are sometimes a part of home inspector's services if duly qualified.

In many provinces and states, the practical standards for home inspectors are those enacted by professional associations, such as, worldwide,  the American Society of Home Inspectors (ASHI).

Currently, more than thirty U.S. states regulate the home inspection industry in some form, including California (regulations, but not licensing). 

Home Inspection Standards

Inspectors will check the roof, basement, heating system, water heater, air-conditioning system, structure, plumbing, electrical, and many other aspects of buildings. They look for improper building practices, those items that require extensive repairs, items that are general maintenance issues, as well as some fire and safety issues. However, a home inspection is not technically exhaustive and does not imply that every defect will be discovered. Some inspection companies offer 90-day limited warranties to protect clients from unexpected mechanical and structural failures; otherwise, inspectors are not responsible for future failures. A general inspection standard for all types of buildings can be found at ASHI.org. These standards serve as a minimum level of care required by the various associations mentioned; many inspectors exceed these standards within their basic inspection or offer additional services such as inspecting pools, sprinkler systems, checking radon levels, and inspecting for wood destroying organisms.