Home inspections are a crucial step of the buying process, even for a brand new home. Matt Cook, Director of Business Development for HomeTeam Inspection Service, shares why.
While housing supply has seen incremental increases in recent months, there is still a major shortage. Between 2012 and 2023, 17.2 million new households were formed, but only 9.98 single-family homes were built. Now, though, with both interest rates and the cost of build materials returning to reasonable levels, industry professionals are expecting an uptick in new construction this year.
As more homes become available and families begin the search for their next place, the value of home inspections has never been more important. Even with new construction, a home inspection is the best way to protect yourself and your investment.
“You should not close on your new home if everything’s not perfect. With a home inspection before closing, you have the opportunity to leverage your position and to ensure that everything is in order before moving in,” Matt Cook, Director of Business Development at HomeTeam Inspection Service, said. “I built a home years ago, and we got an inspection before the final walk through. Our HomeTeam inspection showed us that, among other things that needed to be fixed, the grading was not done properly around the home and would have been a prime location for water intrusion into our basement during heavy rains. Within two weeks the builder completely regraded the backyard and included a french drain to ensure that we did not have any further water issues. That’s not something a builder is going to be keen on fixing at the 11-month warranty stage. Getting that final inspection before closing on the home protects you from finding out about an issue like this one after it’s too late to get the builder to fix it.”
Most new builds do come with a one-year warranty, and HomeTeam recommends calling in the professionals for an inspection around the 11-month mark. This gives you an opportunity to identify anything that may have changed or gone wrong as the home “settled” over the first year, and to negotiate warranty repairs with the builder.
Cook pointed out that a first-year warranty tends to cover everything from nail pops, to broken appliances, etc. What you will have difficulty negotiating will be repairs on major structural issues or parts of the home, that you realized after you moved in, were not built as you had requested in the original plans Clearly it’s important to ensure everything is correct prior to closing day rather than assuming that any misses can be resolved at the one-year mark.
HomeTeam offers a specialized inspection option for new construction, called Phase Inspections, which include three different evaluations of the home as it is built.
“You’re paying smaller amounts over two to three visits, but essentially, you’re getting an inspector to look at the foundation, electrical and plumbing before drywall is put on, then the final inspection before the walk through,” Cook said. “Because inspectors can get in there and see what’s behind the walls before the drywall is put on, you’re able to get a much more thorough inspection this way.”
During the foundation phase, inspectors evaluate whether the concrete was poured and cured properly. It is crucial that the foundation is thick enough, but even if this is done correctly, things like excess moisture in the air can affect how concrete sets, resulting in a weaker foundation.
During the pre-drywall phase, inspectors look at plumbing, electrical, insulation, and anything else that may be hidden once walls are put up. Cook explained that this phase is an important time to make sure that the fixtures and amenities you are expecting are being incorporated. For example, if you are expecting an overhead light and fan in a certain room, an inspector will be able to tell you whether the existing electrical wiring accounts for this.
Finally, a HomeTeam team of inspectors will go through a “final punch-out list” and walkthrough prior to closing day. Once the builder says everything is done, this is one last opportunity to ensure everything looks good.
“If you’re set to close on the home in the near future, we can come in the week before to do that final inspection and make sure everything is good. That way, the home buyer can give a list to the builder to get any issues fixed in time,” Cook said. “The buyer has all the leverage here because they have not paid the builder yet. They just built you a home that’s very expensive to build, and you can keep that check in your hand until you decide you’re happy with it.”
Over the past decade, the housing market has not been able to keep up with the growing number of new households across the U.S. The shortage was only exacerbated by rising interest rates and cost of materials, slowing buying down even more in recent years, but the market seems to be making a comeback. Year-over-year comparisons show more homes on the market, indicating that families looking to move into their own single-family homes have an even better opportunity this year.
“The market is going in the right direction. It’s getting stronger; rates have stabilized, and inventory is increasing,” Cook said. “There is a lot of opportunity for homebuyers this year, but there’s also a lot of opportunity for real estate agents and home inspectors to make sure they’re truly protecting their client during that construction and purchasing process.”
