Don't buy a home without getting it inspected first

One of the most important steps you can take when considering buying a home is to have it inspected by a qualified inspector who will give you an unbiased opinion as to whether or not you're looking at a wise investment. At best, you can move into the house confident that it's in good shape; at worst, the inspector's report can let you back out of the contract if the house has major, unexpected problems (provided that you have a home inspection contingency clause in your purchase contract).

The cost of an inspection varies by inspector, region and size of house but it averages 1% of the sales price. A typical range in the Washington DC metropolitan area, for example, is $350-$450 for a town home and $450+ for a single family home—a small price to pay for something that could save thousands of dollar as well as a major headache!

Home inspectors typically assess:

Exterior features - outside walls, decks, roof, chimneys and drainage conditions
Interior items - windows, doors, plumbing fixtures, electrical outlets and switches
Heating/cooling systems
Attic/crawl space and whether it has adequate insulation and ventilation

Home inspectors aren't usually equipped to do specialized work such as checking for termites; that's when you would need to hire a pest inspector. You may also have to hire specialists to check the conditions of swimming pools, septic systems, and underground storage tanks for heating oil. Some inspectors may not assess the appliances either.

Hiring an inspector
Your real estate agent may be able to refer you to someone they know. Or, you can get a list of certified inspectors in your area at the American Society of Home Inspectors (ASHI) website (www.ashi.org) or by calling 1-800-743-2744. ASHI is the nation's largest home inspector trade association. To become a member, an inspector must pass a test, have performed at least 250 inspections, and adhere to their standards of practice and code of ethics. Members are required to take 20 hours of continuing education annually to keep abreast of new materials, building standards, technologies and inspection techniques.

A qualified inspector shouldn't miss something major but if it does happen your options might be spelled out in the contract. Some inspectors have a contract clause limiting their liability to the cost of your inspection; others have arbitration clauses that limit your ability to file a lawsuit.