Frequently Asked Questions (FAQ's)
Colorado Home Inspection

Generally, having a home inspection before making an offer isn’t necessary. However, there are some rare circumstances when you might consider it. An example would be a strong seller’s market when you want to make a competitive offer without an inspection contingency. Having a home inspector walk the home with you before you make your offer might alleviate your concerns moving forward.

Most realtors will encourage you to exercise your right to an inspection contingency regardless of the circumstances, and we agree. Before going under contract, all your home inspector can do is quickly look around. Your home inspector can’t perform a thorough, comprehensive home inspection until after you’re under contract.

While it might seem counterintuitive to have an inspection before your home hits the market, a pre-listing home inspection offers several benefits that may streamline the selling process.

• Identify and address any potential issues that might deter buyers.
• Make necessary repairs or improvements that may enhance the value of your home and win you a better offer.
• Demonstrate your honesty and transparency to buyers, encouraging them to move quickly to closing.
• Research repairs and prepare yourself to negotiate with the buyer in advance.
• Alleviate your fears surrounding the buyer's inspection because you'll know what to expect.

Though the housing market is ever-changing in Colorado, there was a time when it seemed impossible for buyers to have their offers accepted with an inspection contingency. Many buyers strengthened their offers by waiving their Inspection Objection deadline and having a home inspection for informational purposes only.

This was unfortunate for both buyers and sellers. When a buyer waives their Inspection Objection, their only option is to terminate if the inspection uncovers issues they’d otherwise be happy to negotiate.

Both buyers and sellers should be aware that a home inspection for informational purposes only may shut down negotiations and increase the odds of the buyer terminating post-inspection.

Denver recently passed the "Healthy Residential Rentals for All" bill requiring landlords to be licensed. Landlords must renew their rental licenses every four years, and the approval process requires an inspection.

For details about the program, please visit Denver’s website here: https://denvergov.org/Government/Agencies-Departments-Offices/Agencies-Departments-Offices-Directory/Denver-City-Council/Meet-the-Council-Members/Stacie-Gilmore-Council-District-11/Healthy-Residential-Rentals-for-All

We recommend three types of home inspections for new construction homes: the pre-drywall inspection, the pre-walkthrough inspection, and the 1-year warranty check.

• Pre-drywall: Builders sometimes cut corners. A pre-drywall inspection checks plumbing, electrical, insulation, and structure as the home is being built, before drywall hides these important systems.
• Pre-walkthrough: Your new-build home is under warranty for the first year. An independent buyer's inspection will guarantee the condition of your new-build home before taking possession.
• 1-year warranty check: Builders offer a 1-year warranty on the major systems and components of your new build home. An inspection prior to the expiration of this warranty could save you a fortune on repairs and upgrades.

While your new construction home may seem flawless, an independent professional home inspection will ensure that your investment is sound.

What is the difference between the buyer's home inspection and the appraisal required before loan approval?

Home inspection: The home inspection is for the buyer's benefit. It thoroughly examines the property's condition, focusing on structural integrity, safety, and functionality. The goal is to identify existing or potential issues with the home before the buyer finalizes the purchase.

The result of the home inspection is a detailed report outlining defects, safety concerns, and potentially costly repairs that the buyer may use to make informed decisions and negotiate with the seller before closing.

Appraisal: An appraisal is primarily for the lender's benefit. It's an independent assessment of the property's market value. The purpose is to determine whether the property is worth the amount the buyer has agreed to and if it provides adequate collateral for the loan.

Appraisers consider the property's size, overall condition, location, and comps (recent comparable sales in the area) to determine its fair market value. Lenders use this information to decide whether to approve the loan and for how much.

Generally speaking, the home inspection serves the buyer's interest by uncovering potential issues the buyer may negotiate with the seller. The home inspection is also considerably cheaper than the appraisal, so if it reveals any deal-breakers for the buyer, the buyer may terminate before moving forward with appraisal and loan approval.

What is the difference between a home inspection and an FHA appraisal?

A home inspection is a comprehensive assessment conducted for the buyer's benefit, aiming to uncover all property issues. The result of the home inspection is a detailed report outlining defects, safety concerns, and potentially costly repairs that the buyer may use to make informed decisions and negotiate with the seller before closing.

On the other hand, an FHA (Federal Housing Administration) appraisal is a more focused evaluation required by the lender to ensure the property meets specific minimum standards set by the FHA, including standards of structural integrity, safety, and habitability.

Buyers are encouraged to have a home inspection prior to FHA appraisal. This gives the buyer the opportunity to discuss issues with the seller that may delay closing or terminate if the inspection reveals serious concerns that are deal-breakers for the buyer.

A home inspection and a VA (U.S. Department of Veterans Affairs) loan are two separate components of the home-buying process.

The buyer's home inspection evaluates the home's condition to detect current or potential issues. This includes issues relating to the buyer's health and safety or potentially costly repairs. The result of the home inspection is a detailed report the buyer may use to make informed decisions and negotiate with the seller before closing.

A VA loan is a mortgage program offered to eligible veterans, active-duty service members, and certain National Guard and Reserves members. Its purpose is to help veterans and military personnel finance the purchase of homes with favorable terms like no down payment, competitive interest rates, and limited closing costs.

Approval of VA loans depends on the borrower's eligibility and the property's compliance with VA MPRs. If the property fails to meet these requirements, necessary repairs must be made before the loan can proceed.

Buyers are encouraged to have a home inspection prior to VA appraisal. This gives the buyer the opportunity to discuss issues with the seller that may delay closing or terminate if the inspection reveals serious concerns that are deal-breakers for the buyer.

THANK YOU FOR YOUR SERVICE! At JDS, we appreciate our veterans - please let us know if you are financing your home with a VA loan!

What is the difference between a full, professional home inspection and a limited 4-point inspection?

A home inspection is extensive, covering all aspects of the property, including foundation, roofing, plumbing, electrical systems, HVAC, appliances, health and safety hazards, and more. A buyer's home inspection aims to educate the buyer on their future home and empower them in their negotiations with the seller. Every buyer is encouraged to have a detailed, professional home inspection before advancing with their home purchase.

A 4-point inspection, on the other hand, is a limited evaluation of four major areas: the roof, electrical system, plumbing system, and HVAC system (heating, ventilation, and air conditioning). Insurance companies often require 4-point inspections, especially on older homes, to assess the risk factors associated with these systems. Fix and flip investors often conduct 4-point inspections rather than full home inspections before closing on investment properties.

Generally speaking, home inspections are conducted for buyer awareness and negotiation purposes, while 4-point inspections are limited inspections meant to assure an investor's interest.

The roles of a home inspector and a real estate agent in a real estate transaction are distinct, each with their own set of responsibilities and boundaries.

Your home inspector's primary role is to assess the physical condition of the property you intend to buy. Afterward, we generate a detailed report outlining any defects or concerns, helping you make informed decisions, and arming you in your negotiations with the seller.

However, home inspectors do not participate in negotiations between buyers and sellers, offer opinions on property value, or guide you on whether to buy or sell. We provide a factual assessment of the property's condition, but we can't legally advise you on what to do with that information.

Your real estate agent is there to advise you. You can rely on your agent to assist you in house hunting, negotiating offers, and navigating the legal and contractual aspects of the real estate transaction.

Home inspectors and real estate agents work together to secure your best interest. Think of us as integral members of your rockstar real estate team. When your team works together, you win!

In Colorado, the inspection contingency in a real estate transaction refers to a critical clause in the contract between a buyer and seller. This contingency allows the buyer a specified period, typically 10 to 14 days, to conduct various inspections of the property after the offer is accepted.

Evaluating the Property:

During this inspection period, the buyer may hire a professional home inspector to assess the property's condition. Other typical inspections include radon testing (especially important in Colorado - see my article: Why Test for Radon?), sewer scoping, and sometimes specialized evaluations for pests, mold, or structural issues.

There are many inspections the buyer may opt for depending on the property and the buyer's concerns. Typically, the buyer pays for these inspections.

Inspection Objection Deadline:

Following inspection, the buyer receives a detailed report they may reference in their negotiations with the seller. If the inspection uncovers any significant problems, the buyer might request repairs, credits, or a reduction in the purchase price.

Inspection Resolution Deadline:

The seller responds to the buyer's Inspection Objection with an Inspection Resolution outlining the repairs/concessions they are willing or not willing to make.

Inspection Termination Deadline:

If the buyer is unsatisfied with the inspection results and/or cannot reach a satisfactory agreement with the seller, they have the option to terminate without forfeiting their earnest money.

Buyers in Colorado need to act diligently during the inspection contingency timeframe. The home inspection, radon testing, and sewer scope inspection can generally be completed within a few days; however, the buyer should allow enough time to review reports and make informed (not rushed) decisions.

Radon testing is particularly important in Colorado due to the state's geological characteristics and elevated radon levels. Radon is a colorless, odorless, radioactive gas that seeps into homes from underground, posing serious health risks.

Colorado is known for its high prevalence of uranium-rich soils and rocks. As these materials naturally break down, they release radon gas. The state's dry climate and expansive bentonite clay soils exacerbate this problem, allowing for radon migration into homes.

Prolonged radon exposure is the second leading cause of lung cancer in the United States, making radon testing vital for public health. In Colorado, where one in three homes test positive for high radon levels, radon testing is essential. When radon is detected, mitigation measures can be implemented to reduce the health risks for residents.

For more info, check out my article: Why Test for Radon?

A sewer scope inspection may seem like an added expense, but odds are your Colorado home inspector or real estate agent strongly recommends having one done.

Older homes: Many Colorado homes, particularly those in older neighborhoods, have sewer lines made of clay or cast iron rather than updated PVC. Over time, these materials deteriorate, leading to cracks or collapses in sewer lines.

Tree root intrusion: Colorado's dry climate and soil conditions encourage tree roots to seek moisture and nutrients in sewer lines. Sewer scope inspections frequently uncover invasive root growth clogging or damaging sewer lines.

Expansive soils: Bentonite clay in Colorado is known to shift and settle with changes in moisture levels. This movement stresses sewer lines, leading to misalignment or damage.

New build worksites: Think your new-build home shouldn't require a sewer scope inspection? Think again—heavy equipment and construction debris often damage newly laid sewer lines.

Preventing costly repairs: Identifying sewer issues early may prevent expensive repairs down the road. A sewer scope report also allows buyers to negotiate repairs with sellers before finalizing the sale, potentially saving thousands.

For greater details and pictures (gross!) on what you may uncover during a sewer scope inspection, check out my article: Is the Sewer Scope Inspection Worth It?

A professional home inspector will identify signs of mold growth or moisture-related issues that could lead to mold; however, mold sampling or testing isn't included in a home inspection.

JDS Home Inspection Services checks for visible mold, water damage, and conditions conducive to mold growth, such as inadequate ventilation or high humidity. If mold growth is suspected, we recommend further assessment by a certified mold specialist.

If mold is of great concern to a buyer for health reasons, the buyer may opt to include mold testing in the inspection contingency.

Yes, a thorough home inspection often includes checking for gas leaks, particularly in areas where gas lines are present. Home inspectors are trained to identify potential safety hazards, and gas leaks fall under this category. They will inspect gas lines, connections, and appliances (such as stoves, furnaces, water heaters, and fireplaces) to ensure they are properly installed and functioning without any leaks.

Inspectors may use specialized tools like gas detectors or leak detection solutions to identify the presence of gas leaks. They will also examine ventilation systems to ensure that any combustion byproducts are being safely vented outside the home.

If a gas leak is detected during a home inspection, it's a critical issue that needs immediate attention. Gas leaks can pose serious risks, including fire hazards and health concerns, due to the potential for carbon monoxide exposure. If a gas leak is identified, the inspector will typically recommend that a licensed gas professional be called in to address the issue promptly and make any necessary repairs or adjustments.

Lead-based paint may be present in homes built before 1978 or as late as 1980 (for homes still under construction when lead-based paint was federally banned). The seller must disclose the presence of lead-based paint in their home only if they are aware of it. They are not required to test for lead-based paint before selling their home. In most cases, the seller won't be sure if lead-based paint is present.

In homes where lead-based paint is likely, JDS Home Inspection Services will visually assess for signs of deteriorating paint or lead hazards; however, lead testing is generally not included in a home inspection.

It's important to be aware of health risks associated with lead-based paint, especially for children under six, as lead exposure can lead to developmental and neurological issues. If lead-based paint is of great concern to the buyer, we recommend consulting with a certified lead inspector or risk assessor for a detailed analysis and mitigation.

Ungrounded or two-prong outlets lack the third prong (grounding prong) that allows excess electricity to dissipate safely, reducing the risk of shock or fire. A professional home inspector will check for ungrounded outlets.

JDS Home Inspection Services uses a circuit tester to test for proper grounding and identify potential wiring issues. If we find ungrounded outlets, we recommend updating to three-prong outlets or installing Ground Fault Circuit Interrupters (GFCIs) for safety.

A buyer's home inspection comprehensively assesses a property's condition before finalizing the purchase. It covers various aspects of the home to provide the buyer with a clear understanding of its overall state. Typically, a buyer's home inspection includes:

 

• Structural Components: The inspector assesses the foundation, walls, roof, ceilings, and floors to identify structural issues, such as cracks, settlements, or signs of instability.

 

• Exterior: This involves examining the siding, windows, doors, gutters, downspouts, and any other exterior features for damage or maintenance needs.

 

• Roofing: The inspector evaluates the roof's condition, looking for leaks, missing shingles, and signs of wear.

 

• Plumbing: This includes checking water supply lines, drainage systems, faucets, and water heaters and looking for leaks or water pressure issues.

 

• Electrical System: The inspector examines the electrical panel, outlets, switches, and fixtures to ensure they function safely and up to code.

 

• HVAC (Heating, Ventilation, and Air Conditioning): The inspection covers the furnace, air conditioning, ductwork, and other HVAC components to ensure proper operation.

 

• Insulation and Ventilation: The inspector assesses insulation levels, ventilation in attics and crawl spaces and checks for potential energy efficiency improvements.

 

• Interior: This involves looking at walls, ceilings, floors, stairs, and other interior components for damage, signs of leaks, or other concerns.

 

• Appliances: Often, inspections cover the functionality of devices that come with the home, such as stoves, ovens, dishwashers, and more.

 

• Environmental Concerns: Depending on location and specific concerns, the inspection might address issues like radon, mold, lead-based paint, or other environmental hazards.

 

After inspection, the inspector provides a detailed report outlining their findings, including immediate concerns and potential long-term maintenance suggestions. This report is a valuable tool for buyers to make informed decisions about the property and negotiate with the seller if necessary.

A buyer's home inspection has certain limitations and typically does not cover certain aspects of a property in depth. Some of the areas and items that are usually not included in a standard buyer's home inspection include:

 

• Pest Inspections: While the home inspector will assess for visible signs of pests, the buyer may opt for a professional pest inspection if a suspected infestation is present.

 

• Environmental Testing: Specialized tests for environmental hazards like radon, mold, lead-based paint, asbestos, and water quality are typically not part of a standard inspection but may be add-ons.

 

• Septic Systems and Wells: The general home inspection does not include Septic System or Well Water Testing. However, JDS Home Inspection Services can help you arrange for these inspections.

 

• Swimming Pools and Spas: These amenities are not included and may need a separate inspection to assess their condition, safety features, and compliance.

 

• Structural Engineering Assessment: While visual structural evaluation is part of the inspection, in-depth structural engineering assessments for major issues require specialized expertise.

 

• Appliances: The home inspection generally covers appliances that come with the home, but in some circumstances, the inspector can't test the appliance for functionality. We note these exceptions in the inspection report.

 

• Cosmetic Issues: Minor cosmetic concerns like paint, wallpaper, and carpeting are generally not the focus of the home inspection.

 

• Boundary and Lot Surveys: The general home inspection will not verify property boundaries or survey the lot.

 

• Code Compliance: Generally, the home inspector doesn't confirm whether the property adheres to local building codes.

 

• Hidden or Inaccessible Areas: Inspectors can't access areas like inside walls, between floors, or underground spaces. These hidden issues may go undetected during a home inspection.

 

Buyers need to understand the scope of a standard home inspection and consider additional assessments or specialists as necessary to ensure a thorough understanding of the property's condition.

The concept of a clear pass/fail home inspection is a misconception. Generally, it’s up to the buyer to decide whether the home “passes” inspection and is a good fit for their needs. That said, some issues raise more concern for buyers than others:

 

• Structural Issues: Structural concerns take the lead due to their potential for high repair costs. Cracks in walls or sloping floors might indicate foundation settling, necessitating timely attention to prevent further damage. The causes range from soil expansion to inadequate drainage, particularly in regions like Colorado, where bentonite clay is prevalent.

 

• Sewer Line Problems: Sewer issues can lead to costly repairs if not addressed promptly. A sewer scope inspection is recommended, especially in older homes with clay pipes prone to damage from tree roots, settling, or other factors. Identifying problems before they escalate can save significant costs and prevent complications.

 

• Aging Roof: Roofs past their prime, especially in areas susceptible to hail damage and severe weather, can lead to leaks, mold, and wood rot. Addressing missing or damaged shingles before they escalate is crucial to prevent further damage.

 

• Federal Pacific Stab-Lok Electrical Panels: These panels, prevalent in homes built before the 1990s, are known safety hazards linked to house fires. Replacing these panels is a safety priority and often requires the expertise of a qualified electrician.

 

• Polybutylene Pipes: Prevalent in homes built before 1995, these pipes were prone to bursting, leading to water damage and potential mold growth. We recommend replacement or assessment for integrity.

 

• Mold: While mold is common in households, certain types may be harmful, particularly for those with allergies or sensitivities. If mold is extensive, it may involve substantial cleanup costs.

 

• Pest Issues: Signs of infestation, such as dead insects or mouse droppings, can be unsettling for buyers. Pest problems may range from minor to severe, with different implications for treatment and prevention.

 

• Aging Furnace: Furnaces nearing the end of their serviceable lifespan may raise concerns for buyers due to the potentially high replacement cost. Buyers should be prepared for future expenses or negotiate with the seller.

 

• Health Concerns: Radon, lead-based paint, and asbestos are health-related considerations that may prompt further evaluation, particularly for buyers planning significant renovations.

 

• Safety Hazards: Issues like missing railings, unstable decks, or other potential safety risks may appear on the buyer's Inspection Objection.

 

Effective communication and negotiation between buyers and sellers are essential in navigating these inspection issues. Both parties should trust their realtors to guide them through this process.

 

For more information, check out my article: Top 10 Things that Fail a Home Inspection.