Importance of Home Inspection

Home Inspection on Purchase Versus a Real Estate Appraisal

Gustan Cho Associates are mortgage brokers licensed in 48 states

In this article, we will cover and discuss home inspection on purchase transactions compared to home appraisals. Many homebuyers often asked the difference home inspection and a home appraisal for homebuyers. Home inspection on purchase transactions are not mandatory by mortgage lenders. However, home appraisals are mandatory by all mortgage lenders.

Homebuyers often get confused why they need a home inspection when they are going to need a home inspection. In the following paragraphs, we will cover and discuss home inspection on purchase transactions. We will discuss and explain why a home inspection is highly recommended and why a home inspection is different than a home appraisal.

Is A Home Inspection Necessary When An Appraisal Is Required?

Why is a home inspection on purchase transactions necessary when an appraisal is required? Is a home inspection a waste of money when a real estate appraisal needs to be done? There are instances homebuyers want to save a few dollars and waive a home inspection on their proposed home purchase. Home inspections normally cost anywhere between $300 to $600 dollars.

Home inspections are not required by lenders. However, there are many horror stories of things going wrong after a home purchase. A home inspection would have solved that. However, the premium of a home inspection is a small price to pay versus the potential defects of the home. In this article, we will discuss and cover the importance of home inspections for home buyers.

Home Inspections Are Highly Recommended For Homebuyers

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A home inspection on purchase is highly recommended for all home buyers, especially those who are purchasing older homes. Home inspections on purchase are normally not required by the mortgage lender. But having a professional home inspector inspect the potential new home of a home buyer is worth every penny. This is because in the event if the home inspector discovers major hidden defects with the potential home purchase. A home inspection on purchase is normally ordered prior to the appraisal. So in the event, if there are some serious defects with the home, the buyer can cancel the purchase contract. Or the buyer and seller can negotiate the purchase contract.

Should Real Estate Agents Attend Home Inspections?

Real estate agents should attend home inspections with their homebuyers while the home seller is present. Illinois Realtor Karry Razik is a veteran real estate agent with Re Max First Class in Orland Park Illinois. Here is what he says about home inspections:

Mr. Karry Razik is an expert in helping first time home buyers in Chicago and its surrounding suburbs. He works very closely with many home inspectors, lenders, contractors, title agents, insurance agents, real estate attorneys, and other realtors. He has a wide database of third-party real estate professionals and can give reputable referrals.

How Should You Choose A Home Inspector?
Home Inspectors

Home inspectors are not regulated by the federal government. A Home Inspector does not need to be licensed in many states. Many home inspectors are trained by private home inspection academies. Or are trained through their company’s in house training programs. If a home buyer hires a home inspector, the home inspection on home purchase should include the following inspection:

Structure of the home: 

  • The main construction of the framing, walls, ceilings, flooring, roof, and foundations should be examined and any defects should be noted

The exterior of home inspection: 

The general exterior should be inspected by the home inspection which includes the following:

  • siding general landscape
  • grades, elevations
  • drainage of the surrounding property, gutters, and downspouts
  • windows
  • doors
  • electrical
  • lights
  • switches
  • driveways

Roof and Attic: 

  • Roof and attic should be checked for proper framing and ventilation, flashings, leakage, mold, and other potential defects


  • General plumbing should be checked and any leakage should be noted
  • The home inspector should check if all plumbing is done per code and any potential defects
  • All plumbing fixtures should be checked if it is in proper working condition and/or leaks

Mechanicals which includes:

  • HVAC
  • Chimneys
  • Electrical panels
  • Garage door openers
  • Water heaters
  • Water softeners
  • Sprinkler systems

Appliances which includes:

    • Refrigerators
    • Dishwashers
    • Washers
    • Dryers
    • Microwaves
    • Ovens
    • Garbage disposals
    • Alarm systems
    • Other systems should all be checked and see if they are functional and per code

Home Inspection Report

A home inspector should write a detailed report on items he or she deems to be unsafe or short in its life span. For example, the home inspector should not short life expectancy on roofs, furnaces, air conditioning units, appliances. A home inspector is a general practitioner and might not be an expert in every field but will know a little bit of every aspect of home inspection.

Do Home Inspectors Need To Be Licensed?

Real estate appraisers need to be licensed to conduct appraisals. However, home inspectors normally do not have state licensing requirements to conduct home inspections in most states. There are standards for home inspectors to follow such as general accepted trade contract and fair trade standards and guidelines.

A home inspector may not be licensed or certified in asbestos remediation but should know that the subject property might have asbestos issues. If a home inspector points out a potential issue, it will be up to the home buyer to hire a specialist to consult with a specialist in the field if they want to look at the matter further and see what the costs are to repair them. It is normally a home inspectors job to give you an estimate of what a repair will cost. Some home inspectors might give you a ballpark going rate on certain repairs while others will not.

What Is In The Home Inspection Report

The home inspector will complete a home inspection report after he has reviewed his home inspection. Just because the home inspector notes many defects in the subject property does not mean it is a deal killer. Some items might be extremely minor defects like replacing a ten-dollar light fixture or replacing a receptacle or two. There are home inspection reports that yield major potential problems like foundation issues or structural issues.

Why Is a Home Inspection Recommended?

A home inspection on purchase transactions is highly recommended to all home buyers. The few hundred dollars that a home inspection charges is a great insurance policy that your new home purchase will not have any major defects. Again, it is up to the home buyer whether or not they will have a home inspection on the purchase done.

Home Buyers or homeowners who need to qualify for a mortgage with a mortgage company licensed in multiple states with no lender overlays can contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at The team at Gustan Cho Associates is available 7 days a week, evenings, weekends, holidays.

This Guide on Home Inspection on Purchase Was UPDATED on August 17th, 2022

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  1. My dad would like to sell his home this year, and that is why he has decided to start looking for a home inspection service that will check it for any damages. Thank you for clarifying here as well the importance of detecting any cracks in it too. We’ll have its siding and windows inspected as well. Have contracts lawyers realtors and sellers all set up wife got denied for not having 40 hr on pay stubs has 39.5 hrs I am unemployed right now but collecting we need to get into this house asap please help my score is low 525 something like the there keeps dropping from being ran so now 645

  2. My wife and I are looking to possibly getting a home. My credit score on all bureaus is about 620 as of the 15th of July and my wife’s is bue. I am a Marine veteran and would like to apply for a VA loan.

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