Home Inspection Cost

In New Jersey, where my company provides home inspections, the price for a home inspection for a typical home varies from as low as $199.00, to $1000.00, depending on the size and age of the home. There are additional costs for related home inspection services such as radon testing, termite inspections, septic system evaluation, and well water testing. A search for the presence of abandoned buried oil storage tanks is also often required, or a test of the integrity of the active buried oil tank may be advisable as well. The total costs can run up to $2000.oo or more. Are these costs worth it?

To answer the question of whether a home inspection and related inspections are worth the cost, consider a typical home that we recently inspected. This older home sold for approximately $675,000., and appeared to be in fine condition. Our inspection found the following defects or potential defects and hazards in this home:

• The presence of original old brass water pipe that had enough internal corrosion so that pin-holes were present with micro leaks.
• Two heating systems installed side by side, but only one was functional.
• A hot water heater that was 18 years old...still functional, but not much longer.
• Evidence of prior termite activity and damage to the main beam and floor joists.
• Hazardous electrical panels and obsolete wiring.
• Evidence of an abandoned buried oil tank.

We disclosed these defects and adverse conditions to the buyer in our detailed home inspection report. Cost estimates to cure all these defects came in at approximately $15,000. Based on our home inspection, the buyer instructed her attorney to request a price reduction of that amount. The sellers compromised by offering a $7500.00 price reduction.

Our fee for the home inspection services was $795.00. Do you think our home inspection fee was worth the money?