If you are purchasing new construction, it is reasonable to assume that the entire home is in very good condition.
However, some home inspectors have taken to TikTok to show people just how wrong that assumption can be.
Carolina-based home inspector, ClearVUE Home Inspection, gave a behind-the-scenes look at newly built homes from their professional perspective.
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In a video In a video that went viral in January, a ClearVUE inspector showed the shoddy work behind a $1.5 million new build. There were also major water leaks and wood slats laid haphazardly on top of each other.
“I was more impressed with the fifth grade gingerbread house contest than I am right now,” the ClearVUE inspector says in the video. another videoThe inspector points out that there are three things you should consider as a potential buyer before even submitting an offer or paying for an inspection: gutters, cracks in the walls and the age of the home.
Yet 22% of home buyers waive the home inspection requirement when purchasing a property, according to the National Association of Realtors in May 2024. report.
However, many real estate professionals say that failing to do an inspection is a surefire way to end up with a financial hole.
Why new homes are in poor condition
In the first quarter of 2024, one-third (33.4%) of homes for sale were newly constructed single-family homes, according to Redfin latest figuresThis is almost double pre-pandemic levels.
Huge demand for housing during the COVID-19 pandemic has not dropped mucheven though mortgage rates continue to hover around 7%. This may be why newly built homes are having structural problems.
“There was a marked decline from 2019 to 2020 in terms of construction quality,” said Michael Cholewa, a building inspector based in Portland, Oregon. said MarketWatch. He added that builders were “just trying to build enough homes” and “can’t keep up.”
According to MarketWatch, demand for housing is typically the main reason so many people forgo a home inspection. They wanted to “sweeten their offer” by avoiding the expense and time it would take to get one done.
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“You will always find something”
The average cost of a home inspection ranges from $300 to $500, according to the U.S. Department of Housing and Urban Development. website.
While it adds another annoying cost to the already expensive homebuying process, it’s certainly worth the time and money, says Joe Hunt, Phoenix-based market manager for Redfin.
“You’ll always find something, whether it’s something new or something 100 years old,” Hunt told MarketWatch.
Some problems come up during a home inspection that can be fixed easily and at relatively little cost. But there are others that aren’t worth the purchase price.
Manny Angelo Varas, CEO of a Miami home construction company, said CNBC reports that a leaky roof or crumbling foundation can cost you between $15,000 and $25,000.
Dishonest Inspectors
Even if you have your home inspected, you never know if you will be dealing with an honest professional.
For example, Samantha Barker bought a 1940s ranch-style home in North Carolina in 2023 after a home inspector told her it was fine. But according to her since-deleted viral video (which has also been reported by others press organs), the inspector lied and she ended up paying $65,000 to repair the home’s electrical system and foundation, among other things.
“Buying a house ruined me financially,” Barker said said in his video.
While there are many honest home inspectors out there, it can be nerve-wracking to trust a stranger with the evaluation of a major financial purchase.
If you’re still a little nervous, there are other ways to invest in the real estate market without buying a home.
You can buy Real Estate Investment Trusts (REITs)which are essentially a collection of real estate assets that are freely traded on a stock exchange. It is possible to invest in REITs with small amounts of money, making them very accessible to beginners.
Sure, you won’t have a roof over your head, but it also means you won’t have to worry about a faulty home inspection or paying for major repairs.
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This article is provided for informational purposes only and should not be construed as advice. It is provided without warranty of any kind.
