Buyers, Don’t Forego That Home Inspection

The housing market has never been so competitive and so tough for buyers in the last 50 years. As of April, the inventory of homes for sale at the end of the month remained at near historic lows—1.16 million homes, 20% below the level one year ago, and equivalent to just two months of the month’s sales, way below the desired five to six months of supply.
With a severe lack of inventory, home prices are rising at a torrid pace. The median existing-home sales price rose at a record high of 19.1% year-over-year in April. Many metro areas are experiencing strong price growth, with the median existing home sales price rising by double-digit pace in 89% of metro areas. Eighty-eight percent of properties sold in a month, according to Realtors® who responded to the monthly Realtors Confidence Index Survey.
On average, there were a little over five offers on homes that sold in April 2021. Cash buyers accounted for 25% of home sales, up from 15% one year ago when investors retreated in the wake of the pandemic.
25% of Homebuyers Waived Their Inspection Contingency Clause
Because the market is so competitive, buyers are doing everything to sweeten their offer—including waiving a home inspection, according to feedback from Realtors. In May, Realtors who responded to a monthly survey reported that 25% of buyers waived the inspection contract contingency clause.
Buying a home without having a home inspection is never wise because a home is the largest investment a household will normally make. Such a large investment requires due diligence, or full knowledge of the condition of the property that is properly reflected in the purchase price. A home inspection gives the buyer information about the condition of the property and potential problems that may arise. This is so the buyer can ask that these issues be fixed before closing or allows them to anticipate the costs needed to have these structural or cosmetic problems fixed if the house is sold on an “as is” basis. Does a buyer need a home inspector? Yes, because some issues are not detected by the naked senses, such as radon gas, lead, or asbestos.

41% of Single-Family Homes are More Than 50 Years Old
Most homes for sale are existing homes. In the U.S., 41% of single-detached and attached homes at least 50 years old were built before 1969. Old homes tend to be found in the Northeast and Midwest; in 13 states and in the District of Columbia, at least half of single-family detached and attached homes are 50 years old or older, with the largest share in DC (89.2%), New York (76.1%), Pennsylvania (70.3%), Rhode Island (70.1%), Connecticut (69.9%), Ohio (68.5%), Iowa (68.5%), Massachusetts (67.8%), Michigan (67.2%), and Illinois (66.4%).
According to Home Inspectioninsider.com, older homes are usually tested for the presence of hazardous building materials such as lead and asbestos. Lead paint was used in interior and exterior paint before 1978, and in plumbing pipes until the mid-1980s. Ingestion of lead either through the mouth or nose could result in heavy metal poisoning and is particularly harmful to young children. The lead paint can be sealed and painted, but only if the flaked or chipped leaded paint has been fully removed and the surface is smooth so it can be painted over.
Asbestos is another hazardous material that can cause lung cancer and other respiratory problems. It was a common building material used in cement fiberboard sidings, roof felt and shingles, vinyl tile flooring, fuse boxes, wiring insulation, and outlets.
Older homes will also have more foundation and structural problems as evidenced by unevenness in floors, exterior and interior wall cracks, sagging roof structure, and poorly operating doors and windows; these inferior openings can allow damp air into a home and encourage the growth of mildew and mold. Buyers will likely notice poorly functioning doors and windows, but other structural integrity issues will require a home inspector to assess.
Home insurance companies will usually require a 4-point inspection of the house’s major systems—the roof, electrical, plumbing, and HVAC—particularly for older homes that may have fallen into disrepair or were constructed under older building codes.
Stucco is the Most Popular Exterior Material
According to the U.S. Census Bureau’s Survey of Construction, stucco is now the most commonly used primary exterior material of new single-family houses that were sold in 2019, accounting for 32% of houses sold.
In 1994, stucco accounted for just 20%. Stucco is the most common exterior material in the West region (59%), although usage has decreased with fiber cement becoming increasingly popular. Vinyl and brick are the second most popular types of exterior materials. While vinyl is still common, its use has been declining from being the most popular primary exterior material from 1995 through 2013. However, vinyl is still the main exterior material used in the Northeast region (79%) and in the Midwest (59%).
Brick has had a pretty stable share, hovering at around 20 to 25%. It is still the most commonly used exterior material in the South region (35%). Fiber cement is the fourth most popular exterior material, but it has become more commonly used, accounting for the exterior material of 13% of homes sold in 2006 to 20% in 2019. Wood accounted for just 3%, down from 26% in 1994.
The use of primary materials like concrete block, stone, steel, aluminum, and other materials has also declined from about 10 to 15% from 1994 through 2005 to just 1% by 2019.

1 Other includes concrete block, stone, aluminum, and other types
Watch out for these home inspection issues
The use of these materials serves an aesthetic and functional purpose of providing a sturdy exterior, efficient insulation, and comfortable living environment. However, home inspectors should also be watchful of the effects of weather and natural elements on these materials and poor installation that can reduce their warranty life.
According to HomeStratosphere.com, the main benefit of stucco is its low maintenance, durability, resistance to fire, and its ability to insulate the home efficiently. However, stucco does not hold up well in wet, humid environments. Inferior installation can result in it being susceptible to water intrusion. Home inspectors should be on the lookout for stucco leaks, wet stucco, and mold infestation.
Vinyl siding gained popularity because it is a low-cost material, is available in many colors and forms (shingles, panels, fish scales), and usually comes with a warranty of 30 to 40 years. However, it has a synthetic, plastic look and is not biodegradable, so its use has been waning due to rising preference for environmentally friendly and green products and features. Vinyl can be damaged by extreme temperature, so home inspectors should watch out for cracks. They should also inspect the quality of the installation because poor installation can result in water working its way through the vinyl pieces, causing the wood underneath to rot and mold.
Wood siding is attractive with its natural look. However, it requires regular treatment to prevent termites, insect infestation, and rot. Shingles need regular caulking and painting (every three years) to prevent damage by moisture, which can then lead to the growth of mold and algae. Inspectors should watch for wood that has warped, curled, or cracked, as well as check for shingles that have loosened, causing water intrusion. For log houses, inspectors should be on the lookout for cracks in logs and should request to have all cracks sealed to prevent decay.
Brick, stone, and fiber cement are very durable and are not susceptible to water intrusion, rot, mold, termite, or insect infestation. However, they are more expensive than vinyl, stucco, or wood sidings.
Brick does not get warped by extreme hot or cold weather and is not susceptible to water intrusion or to mold or termite infestation. Brick doesn’t ever need to be repainted or refinished.
Fiber cement siding is a man-made material made using a combination of wood fibers, sand, and cement. It is created to mimic another material—usually natural wood—and can be manufactured in almost any color or design. It is water-resistant, so it does not rot or mold and insects can’t live inside of it. However, it is not as durable as brick, stone, or vinyl. Most fiber cement siding comes with a warranty of around 15 years.
Natural stone is 100% resistant to moisture as well as to fire and insects.
Metal siding is resistant to rot and mold. However, improper finishing can lead to rust so home inspectors should check to ensure finishes are done correctly.
The opinions expressed in this article are those of the author only and do not necessarily reflect the opinions or views of ASHI. The information contained in the article is general and readers should always independently verify for accuracy, completeness and reliability.
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