HouseMaster, a prominent home inspection company operating across over 390 cities in the United States and Canada, reveals that approximately 40 percent of pre-owned homes exhibit at least one form of damage. Kathleen Kuhn, CEO and president of HouseMaster, emphasizes that virtually every previously owned home requires some level of repair or enhancement, which is particularly crucial given today’s soaring real estate prices. Kuhn underscores the importance of being informed about any significant issues in a prospective home and understanding the necessary remedies.

Drawing from a database of over one million home inspections, HouseMaster has identified the most critical home defects for buyers to be vigilant about:

1. Cracked heater exchanger
2. Failing air-conditioning compressor
3. Environmental hazards such as radon, water contamination, asbestos, lead paint, and underground storage tanks
4. Moisture in the basement
5. Defective roofing and/or flashings
6. Insect infestation, including termites or carpenter ants
7. Mixed plumbing
8. Aluminum wiring
9. Horizontal foundation cracks
10. Major house settlement
11. Undersized electrical system
12. Chimney settling or separation

While many of these issues are remediable, the costs can vary depending on their severity, particularly if they affect a major system. Therefore, prospective buyers need to carefully consider these factors before making a purchase decision.

For instance, repairing or replacing a roof could entail expenses amounting to thousands of dollars, while a new air conditioning compressor might cost up to $1,200. Basement repairs typically run around $5,000. During negotiations, buyers should consider including provisions for renegotiation or contract withdrawal in case the inspection reveals serious problems.

Eric Tyson and Ray Brown, authors of “Homebuying for Dummies,” advise that significant repair costs can potentially derail a deal. For instance, if an inspection uncovers $20,000 worth of termite damage, dry-rot repairs, foundation work, and a new roof on a $200,000 house, it could become a deal-breaker.

However, if buyers are still intent on purchasing a property despite its issues, several options are available:

1. Sellers can allocate funds in escrow to cover repair costs, with instructions for the escrow officer to disburse payments to contractors upon completion.
2. Lenders may withhold a portion of the loan amount in a passbook savings account until repairs are completed.
3. Sellers might offer a credit for the necessary work, though lenders may be hesitant due to uncertainties surrounding repair completion.

Ensuring a thorough inspection is paramount. Professional inspectors typically charge between $250 and $400 for their services. Buyers should seek referrals from reputable organizations like the American Society of Home Inspectors or the American Association of Home Inspectors to verify an inspector’s credentials. Additionally, spending time with the inspector to understand identified issues and maintenance tips is crucial.

In conclusion, as Kuhn emphasizes, a pre-purchase inspection serves as the best safeguard against making an emotionally driven rather than financially sound investment in a home.