Home Inspections vs Code Inspections? What's the Difference?

Understanding the two main types of property inspections—home inspections and code inspections—is essential for anyone buying or selling a home. These inspections serve different purposes, and knowing their distinctions can lead to better decisions. Let's break down these inspections in simple terms to clarify their roles in real estate.

What is a Home Inspection?

A home inspection is a detailed assessment of a property's condition at the time of the inspection. It's usually required when buying or selling a home and focuses on identifying any issues that may need repairs. Home Inspectors follow the Standards of Practice and Code of Ethics adopted by their licensing states and or professional certification organizations, such as InterNACHI or ASHI.

Typically hired by the buyer, home inspectors will visually examine all the various accessible systems of the house. They look at (not all-inclusive):

Exterior: Wall covering materials. Eaves, soffits, fascia. Windows, doors. Flashing, trim. Stairways, porches, railings, handrails. Surface drainage, grading, vegetation.
Basement, Foundation, Crawlspace: Structural components. Cracks in walls or foundation issues.
Roofing: Roof covering material. Missing flashing, shingles or leaks. Vents, chimneys, roof penetrations.
Electrical systems: Service supply entrance attachment and equipment. Disconnects, panelboards, grounding and bonding. Ensure a representative number of outlets and circuits function properly, including all AFCIs and GFCIs. Presence of smoke and CO2 detectors.
Plumbing: Main water supply shut-off. Water heating equipment. Interior water supply. Toilets, sinks, tubs, showers and drains. Check for leaks or outdated piping.
HVAC systems: Ensure heating and cooling units are operational.
Fireplace: Visible portions of fireplace and chimney. Lintels, damper doors, cleanout doors.
Attic, Insulation & Ventilation: Insulation in unfinished spaces. Ventilation in unfinished spaces. Mechanical exhaust systems.
Doors, Windows & Interior: Doors, windows, floors, walls and ceilings. Stairs, steps, landings and ramps.
Kitchen: Attached appliances, cabinets, drawers, doors, countertops. Electrical outlets and switches.
Attached Garage: Residential access door. Floor, walls. Manual and auto operation of garage door. Garage door safety, photo-electric sensors. Manual disconnect.

For example, according to a National Association of Realtors survey, 61% of buyers find issues that might affect their purchasing decisions after a home inspection, highlighting how important these evaluations can be.

Why You Should Get a Home Inspection?

Imagine spending a significant amount of money on a new home, only to discover crucial repairs needed—you won't want to face a surprise like a leaky roof just a year after buying. A home inspection provides insights that arm you with valuable information during the buying process.

If serious issues, such as a malfunctioning heating system or pest problems, are found, buyers can use the report to negotiate repairs or a lower sale price. In fact, about 63% of home buyers negotiate repairs based on inspection findings, potentially saving thousands.

Sellers can also gain from a pre-listing home inspection. Fixing identified issues before selling can lead to a smoother sale and often higher property value. According to home improvement statistics, homes that have been recently inspected and repaired often sell for about 10% more than similar, uninspected properties.

What is a Code Inspection?

On the other hand, a code inspection assesses whether a property complies with local building codes and regulations. These inspections are typically required by local governments during major renovations or new constructions. Local governments typically follow or have adopted some form of the Following: International Residential Code, Uniform Plumbing Code, National Electrical Code, among many others.

A municipal inspector evaluates:

Structural integrity: Ensures safety standards are met.
Electrical work: Verifies installation conforms to code.
Plumbing systems: Confirms pipes and fixtures are correctly installed.
Heating and cooling: Checks that HVAC systems meet code requirements.
Safety devices: Ensures smoke detectors and carbon monoxide detectors are installed and functional.

Failing a code inspection means the owner must address issues before occupancy, protecting future residents from poor building practices.

The Purpose of a Code Inspection

Unlike home inspections, which are voluntary, code inspections are often obligatory, especially during construction or renovation. Their primary purpose is to ascertain that properties meet safety standards.

For homeowners ready to dive into renovation projects, being aware of code inspection requirements is vital. Missing these inspections could lead to costly fines or the need for major repairs later on, disrupting a project timeline.

Key Differences Between Home Inspections and Code Inspections

Now that we've discussed what each inspection entails, let’s highlight the key distinctions.

Focus on Condition vs. Compliance

Home Inspection: Focuses on the overall condition of the property, including functionality and potential red flags. Typically completed when a house is sold.
Code Inspection: Centers around whether the property meets local laws and safety standards, aiming to ensure safety compliance. Typically completed when a house is built or renovated.

Who Conducts the Inspections?

Home Inspection: Conducted by private certified inspectors hired by buyers or sellers.
Code Inspection: Performed by government inspectors acting on behalf of local authorities.

Timing of Inspections

Home Inspection: Usually takes place before the sale of a home, generally during the buying process.
Code Inspection: Occurs during construction or significant renovation to confirm that work is being executed up to standard.

Outcome and Documentation

Home Inspection: Results in a detailed report showing any necessary repairs and recommendations. Not a pass or fail result, solely informational for the client.
Code Inspection: Produces a compliance report indicating whether the property meets or fails to meet specified building codes.

When Do You Need Each Type of Inspection?

Timing is key for both types of inspections.

For home buyers, scheduling a home inspection should be standard practice. It offers peace of mind and safeguards your investment. Homeowners should consider home inspections on a regular basis in order to safeguard against future problems.

Conversely, if you’re contemplating significant renovations or construction, a code inspection is often required. This step ensures that your project remains compliant and avoids future headaches. Ensure your timeline and budget includes the permitting process.

The Benefits of Home Inspections

Homebuyers uncover several advantages when opting for home inspections:

Avoid Unexpected Costs: Catching problems early stops unexpected financial burdens.
Negotiating Leverage: With an inspection report, buyers can ask for repairs or discounts, leading to significant savings.
Increased Confidence: Knowing you have done thorough research makes the buying process smoother and more assured.
Better Preparation: Identified issues allow buyers to budget for repairs prior to moving in.

The Benefits of Code Inspections

If you're considering renovations, code inspections also come with notable benefits:

Enhanced Safety: Ensures the property stays safe for occupants by adhering to established standards.
Increased Property Value: Homes that pass code inspections often have better resale value. Keep those records.
Avoiding Legal Complications: Complying with codes minimizes the risk of fines and penalties down the road. Don't skip the permitting process, it doesn't save you any money in the long run.
Documentation for Future Buyers: Passing a code inspection provides paperwork that can attract future buyers, demonstrating a commitment to safety.

Common Misconceptions about Home and Code Inspections

Several myths can cloud the understanding of home and code inspections. Let’s clarify a few.

Myth 1: Home Inspections Are Only for Buyers

In reality, sellers benefit greatly too. Conducting a pre-listing inspection can save time and prevent delays by diagnosing issues in advance.

Myth 2: Code Inspections Are Just Formalities

Many believe these inspections are routine; however, they are essential for ensuring safety and adherence to regulatory standards. Ignoring them can lead to dangerous outcomes.

Myth 3: Inspectors Always Find Problems

While issues are common in home inspections, not every property encounters significant problems. Some homes truly shine in their condition.

Final Thoughts

In conclusion, both home inspections and code inspections play crucial roles in the real estate process. Knowing their differences is vital for anyone involved in buying or selling a home. As you navigate your real estate journey, remember that being informed leads to more confident decision-making.

Be proactive, understand these inspections, and arm yourself with knowledge. Happy house hunting or selling!

Ralph Castro is a Certified Professional Home Inspector in NW Arkansas inspectorguy.biz