Is a Home Inspection Required to Buy a Home in California?

This blog post is part of an ongoing series in which we answer frequently asked questions about buying a house in California. Today’s question: Is a home inspection required when buying a home in California with a mortgage loan?

At a glance: Generally speaking, home inspections are not required in California. It’s entirely possible to buy a house without having it inspected first. But an inspection is still a worthwhile investment, because it reveals the true condition of the property. Appraisals, on the other hand, are usually required for mortgage loan approval.

Is a Home Inspection Required in California?

With that being said, a home inspection can provide a lot of value for a buyer and for a relatively low cost. By having a house professionally inspected, you will gain valuable insight into its current condition.

Home inspectors evaluate all aspects of the house. This includes the roof, the foundation, the electrical system, plumbing, and more. They generally have hands-on experience and a trained eye that allows them to identify issues that a home buyer might overlook.

Purpose of a California Home Inspection

A home inspection is a non-invasive examination of a home’s physical structure and systems. It typically includes the roof, siding, windows, doors, foundation, plumbing, electrical, heating and cooling systems, and overall condition of the property.

Home inspections help to identify potential problems with the property, before the purchase is finalized. This can help you, the buyer, make an informed decision about whether or not to purchase the house.

In California, the average cost of a home inspection is around $430. But the cost can vary depending on the size and location of the home, among other factors. So the final cost might range from $350 to $500 for a typical property inspection.

It’s the buyer who requests and pays for the home inspection. After all, the entire process is designed to help the buyer make an informed purchasing decision. So it’s their responsibility to select, hire, and pay the inspector.

What the Inspector Looks for

California home inspections involve a thorough investigation of the property being purchased. The inspector will examine the house inside and out, with an eye out for damage, items in need of repair, and possible safety hazards.

While the process can vary from one inspector to the next, it typically includes the following checkpoints.

• Structural Components: The inspector will evaluate the integrity and stability of the home’s foundation, walls, roof, and overall structure. They look for signs of cracks, water damage, sagging, or other indications of structural issues.
• Electrical Systems: The inspector will examine the electrical wiring, outlets, circuit breakers, and panels to ensure they meet safety standards. They may also check the functionality of light fixtures, ceiling fans, and other electrical appliances.
• Plumbing Systems: The plumbing system (including pipes, drains, faucets, and toilets) will be inspected for leaks, blockages, or inadequate water pressure. The inspector may also check water heaters, septic tanks, or sewer lines if applicable.
• HVAC Systems: The inspector will assess the heating, ventilation, and air conditioning (HVAC) systems for functionality and efficiency.
• Roofing and Exterior: The inspector examines the roof for any signs of damage, such as missing shingles, leaks, or weak spots. They also evaluate the condition of the gutters, downspouts, siding, windows, doors, and any other exterior features.
• Interior Components: The inspector evaluates the interior elements, including walls, ceilings, floors, stairs, and railings. They may look for indications of water damage, mold, pests, or structural issues.
• Insulation and Ventilation: The insulation levels and ventilation systems are evaluated to ensure energy efficiency and proper airflow within the home. This might involve assessing the insulation in the attic, crawlspaces, and walls, as well as checking for the presence of exhaust fans in bathrooms and kitchens.

Despite its detailed nature, a home inspection is a non-invasive examination. The inspector will not look inside walls or dismantle any installed systems during this process. The examination is purely visual and limited to what they can see without taking invasive measures.

Benefits for the Buyer

Given everything we’ve covered, you can probably already understand the biggest benefit of getting a home inspection in California. It gives you a deeper level of insight into the property’s condition, compared to what you would gain when walking through it on your own.

Here’s a more detailed look at these and other benefits:

1. Peace of mind

A home inspection can give you peace of mind knowing that you are buying a property that’s in good condition. This is especially important for first-time buyers. The inspection can help you identify potential problems such as water damage, mold, or structural issues. In short, it helps you make an informed decision about whether or not to buy the home.

2. Reduced risk of costly repairs

By identifying problems that might lead to costly repairs in the future, the home inspection can help you budget for such repairs. It can prevent unpleasant surprises down the road. For example, if the inspector discovers that the roof needs to be replaced, you’ll know that you need to budget for this expense in the near future.

3. Increased bargaining power

If a home inspection reveals major problems, you might be able to negotiate a lower sale price or ask the seller to make repairs. It gives you an extra bargaining chip for negotiations.

4. Better understanding of the home

A home inspection can help you learn more about the property’s history and condition. The inspector might be able to tell you how old the roof is, when the plumbing was last updated, and if any major repairs have been made in the past.

Why It’s a Worthwhile Investment

In California, home inspections usually cost somewhere in the low $400 range. But the cost can vary based on the size of the house and the complexity of the inspection itself. A larger home might cost more than average, while a condo or a smaller house might cost less.

But either way, it’s a relatively small price to pay for peace of mind. Especially when you consider that the median home price in the Golden State is currently approaching $900,000.

Buying a house in California is a huge investment. You want to make sure you’re making a sound investment, and the inspection process helps you determine this. It gives you a clearer picture of the home’s condition, as well as any potential repairs that might be needed.

You’ll Probably Need an Appraisal

Home inspections and appraisals are often lumped together erroneously. First-time buyers sometimes get them mixed up, thinking they are one and the same. But these are two separate processes.

• Inspection: A home inspector’s primary objective is to evaluate the condition of the house and identify items in need of repair. They are not concerned with the market value of the property.
• Appraisal: The purpose of a home appraisal is to determine the current market value of the house, based on recent sales activity in the area (and other factors). The appraiser’s primary goal is to figure out how much the house is worth in the current market.

Home inspections are usually not required in California, but appraisals are almost always required when a mortgage loan is being used.

Banks and lenders want to ensure that a house is worth the amount the buyer has agreed to pay for it. After all, the home is being used as collateral for the loan. So they use home appraisals to determine the market value.

Need a mortgage loan? Bridgepoint Funding has been serving the mortgage financing needs of Californians for nearly 20 years. We offer competitive rates on FHA, VA and conventional home loans. Please contact us if you would like to receive a rate quote, or if you have any mortgage-related questions.