One of the biggest perks of buying a new construction home is the benefit of the new building and structural components at the beginning of their life cycle. However, new doesn’t mean perfect, so a new construction property inspection is advised.
Not only does having a new construction home inspection provide the homeowner with peace of mind, but it also alerts them to any issues, facilitating the request to the builder to have problems remedied, ideally before closing.
Why do I need a property inspection in a new build?
Various issues can arise in a new home due to human error or missed items during construction, faulty materials and workmanship, or damage sustained from water or other sources.
Having a new build home inspection mitigates homeowner risk. While property inspections vary in cost from city to city and may vary based on the size of the home, the cost is minimal relative to the price of a home investment.
Housing components and structural items have a lifespan, meaning that part of homeownership will involve attending to repairs, maintenance, and replacement over the years. The main goal of a new construction property inspection, other than identifying issues to bring to the builder to fix before closing, is to ensure that there aren’t things in the home that might have to be repaired or replaced prematurely because of defects or faulty installation, ultimately incurring more cost for the homeowner once the builder warranty expires.
Additionally, the property inspector is an impartial third party, so the buyer’s interests are well represented.
When should I have a property inspection for a new build?
While with an existing home, there would be one property inspection before closing, ideally, a homeowner of a new build would have multiple inspections at various stages of construction, including foundation (i.e., before the foundation being poured), a framing inspection (i.e., when framing, roof and windows are in, but before drywall) and a final inspection when the home is entirely built, but before closing.
At the first inspection, the property inspector looks at the footings and ensures that grading and excavation have been done correctly. When the framing is up, they will look at beam and post-installation and have an opportunity to look at wiring and plumbing before the walls are installed. As part of a final property inspection, the inspector does not go behind the walls or cut holes in them, so this is the only opportunity to get a comprehensive look.
The pre-closing inspection is the most commonly done if a homebuyer opts for a single inspection or if they have bought a model home or a new build on spec.
For extensive due diligence, homeowners may consider adding property inspection at the 11-month mark after closing, being mindful that most builder warranties are in place for a year.
Peter Young, a home inspector with Peter Young Home Inspections, notes that homeowners find the timing of the 11-month inspection helpful to “make sure that everything that needs to be repaired under the warranty before it expires.”
In his experience in the field with new construction homes, Young says that homeowners find the information gleaned from their property inspection valuable and, therefore, a worthwhile choice.
“Homeowners are happy that they got an inspection done, especially because they would not have known about the problems otherwise. They are usually quite grateful to have information on the front end of their home purchase,” says Young.
What is covered in a property inspection?
There may be slight differences across regions in the country, but a property inspection generally covers structural and mechanical components of a home, such as:
- Foundation and basement construction
- Windows and doors
- Walls
- Floors and ceilings
- Roof and gutters. Some states include chimneys in property inspection; some do not
- Attic, including ventilation and visible insulation
- HVAC, including thermostat
- Plumbing, including sinks, toilets, and sump pump
- Electrical, including panel boards and circuit breakers
- Exterior siding
- Driveways and walkways
- Exterior structures such as the garage, deck, patio, etc. (usually are included as long as they are connected to the home)
- Appliances- particularly with attention that they have been installed correctly in regard to plumbing and electrical
What isn’t covered in a property inspection
It’s not uncommon for homeowners to assume incorrectly that a home inspection includes everything from the roof down. However, that is not the case.
A property inspector will inspect walls for nail pops, water damage, or drywall cracks. Still, they won’t open walls up to look for potential defects inside (which is why an additional inspection at the framing stage in a new construction home is useful).
They will look at the plumbing and fixtures to make sure they are leak-free and that they turn on/off or flush, but they won’t look inside pipes or look into sewer lines.
Think of a property inspection as a general checkup of what is immediately visible for the structural integrity of a new home. Several other systems, modifications, and structures within a home fall outside of a general property inspection but may still warrant a separate examination depending on the location and circumstances.
It comes down to the level of risk that a homeowner is ready to assume.
Not covered in a general new home construction property inspection are:
- Pools and spas
- Pests (although may be noted in a report if the damage is overt). While this may seem to be a problem that occurs more regularly with older homes, new construction homes are not immune to pest damage, especially in some locations where it is common
- Air quality, like the presence of radon or mold, isn’t included. Although if mold growth is apparent, it would likely be noted in the inspection report
- Home décor and finishes
- A fireplace and full interior of a chimney (outer chimney is inspected)
- Well and septic, as well as water quality
Why do I need an inspection if my home has passed building code inspections?
New construction homebuyers may feel that it is ok to pass on a formal property inspection because their home would have had to pass inspection at various construction phases for code standards.
However, inspecting to code is different from a complete home inspection. The county or building inspector will do a quick overview while a property inspection digs deeper.
A county or city building inspector will run through their checklist quickly, likely doing several homes sequentially. At the same time, a formal property inspection generally takes at least two to three hours because of the level of detail involved.
Building codes focus primarily on safety around systems and structures such as plumbing, electrical, ventilation, heating, HVAC, air conditioning, natural gas systems, etc. Building codes evolve with changes in technology and materials but always focus on preventing dangerous conditions in a home because of fire or flood or something similar due to a malfunction of housing components.
The code inspector works for the government (state or municipal), whereas a housing inspector works for the homeowner, representing their best interests.
A housing inspector looks at the housing components to identify any structural deficiencies or deficiencies in workmanship that may cause damage or deterioration to the home that the homeowner should be aware of before purchase. It’s an educational tool to help homeowners bring issues up with sellers (in the case of new construction, the builder) before the deal is closed.
The home inspector plays a key role in the homeowner’s due diligence, and while their work is to uncover errors, at the end of the day, it creates a better product and more satisfied customers, which is essential to the builder.
“A lot of times, new construction homes are being built by large developers, and they are moving quite quickly. Some developers look to the home inspector to help alert them to problems,” says Young.
Common problems that occur in new construction homes
Some issues commonly arise during a new construction home inspection, usually due to human error or builder oversight. Sometimes with builders on tight timelines, things get missed, underscoring the importance of a home inspection.
The good news is that many of the most common issues are fixable, and it is to the buyer’s benefit to present these to the builder before closing.
Young explains that the builder can quickly remedy most of the issues he sees during inspections.
“The most common are small things like outlets that don’t work, as they just got missed during the construction process, reversed doors and windows that need to be adjusted so that they close correctly, sometimes the insulation needs to be done better, etc. It’s usually about the details,” says Young.
It’s common to find unfinished projects like handrails on staircases not fully attached or fixtures needing to be appropriately connected.
Home inspectors often uncover problems with floors, where there are gaps in the installation or the floor itself is scratched.
While builders miss things during construction, Young suggests that mass production in a community serves as an informal quality assurance, which is why deficiencies from new home construction tend to be relatively minor.
“Larger developers are often doing production building, and their crews are just doing variations of the same house over and over,” says Young.
While many issues uncovered during a property inspection are minor, they can cause inconvenience or future damage if left unchecked, which is a compelling reason to have an inspection done.
A property inspection of a brand-new home will reveal more severe issues, such as cracks in the foundation, which may have happened because there wasn’t enough time allowed for the concrete to cure and dry. Sometimes if the framing is done incorrectly, this can cause cracks as well.
Another major issue that arises is faulty plumbing installation causing water damage.
Draining and grading issues are also common in new construction. They can be problematic in the future, as improper grading or drainage won’t direct water away from the home and could cause severe leaks and water damage to the foundation.
Roofs sometimes have issues as well, with tiles incorrectly installed. This can cause premature damage to the roof and potential water leaks, which can cause significant damage.
Difference between a property inspection and an appraisal
There is sometimes confusion between a property inspection and a property appraisal. Often as a condition of financing, a lender will require an appraisal of the home. An appraiser tours the home and determines the value based on the size, location, features, and condition of the house and comparable home sales in the area.
A lender doesn’t generally require a home inspection, but it is a choice made by the homebuyer to mitigate their risk. The home inspection ensures that projects, systems, and components are completed and in working order while an appraisal establishes value.
Difference between a property inspection and the final walkthrough
Homebuyers will have the opportunity to do a final walkthrough with their builder, which is also different from a property inspection. The walkthrough happens just before closing when the homebuyer, builder, and realtor (if the homeowner is using one) have a chance to tour the home to ensure that everything is completed and to ensure that all upgrades, finishes, features, etc., are done according to the agreed upon specification sheet. The walkthrough allows homebuyers to do a visual inspection and identify any variances from the spec sheet with a quick visual inspection. This tour is short compared to an entire home inspection which will take several hours.
What if the home inspector finds a problem?
In a sale of an existing home, the buyer usually builds a clause to their offer that the purchase is contingent on the completion of a property inspection. If issues are discovered during the inspection, the buyer can go back to the negotiating table to try to either get repairs made or to have a price reduction to reflect the cost of the repairs.
However, with a new construction home, that contingency may not be the case, especially if the house is a custom or semi-custom build.
The homebuyer will likely present issues to the builder, who will usually work to fix matters expeditiously, as they are obligated to fix problems covered under the builder’s warranty. It is more cost-effective and convenient for the builder to have problems remedied while a home is still under construction and workers are still on site in the development.
Confirm builder warranty coverage
It’s up to someone other than the property inspector to advise the homebuyer on how they should proceed with their deal, but rather they point out problems to educate the homeowner.
The homebuyer should always confirm the terms and conditions of the builder warranty. However, this is even more important if the homebuyer elects to skip the property inspection to ensure they are adequately covered.
