One of the many questions asked by people when they are shopping for a home is how much does a home inspection cost in Indianapolis. This is a question that is as easy to answer as “How much does a home cost in Indianapolis?”. In either case, it will depend on many factors. Some of these factors will be similar for both the price of a home and the price to inspect it, but other factors affecting the cost of a home inspection will differ from the factors that drive a home’s price.
Does the economy affect the price of home inspections in the Indianapolis area?
Some factors affecting the average price of a home in the Indianapolis metropolitan market which also come to bear on home inspection cost are economic factors- when the housing market is hot, and sellers are able to ratchet up their price, a higher number of sales transactions translates to more work for inspectors. When inspectors are super busy, they may increase their prices a little- because they can. This phenomenon is also often seen in building construction and maintenance. When trades specialists are super busy, their prices will go up. Conversely, when the housing market has a significant slowdown, builders, contractors, and trades practitioners will often lower their prices a little in an effort to get more work. Home inspectors may do the same, if they fear that competition is fierce and they need to lower their price to get work. Fortunately for home inspectors in Central Indiana, the Indianapolis market has proven stubbornly steady, even in the face of higher interest rates and other challenging economic factors. This market stability in turn tends to stabilize the cost of home inspection in Indiana, and Indianapolis in particular. Price stability helps everyone. Prices being consistent, it is unlikely that pricing between several home inspection companies will vary by much. This is good for the consumer; they can focus more on finding the right inspector for their needs.
What other factors influence home inspection cost in the Indianapolis market?
Other common factors that influence home inspection cost in Indianapolis, or anywhere, is, in a nutshell, a reflection of how much work and time will be required. Common parameters used by many home inspection companies in Central Indiana is square footage. Square footage is easy for the inspector to verify (so don’t fudge on it!), and it plays a substantial role in the amount of work and time required to perform a home inspection. Larger houses have larger roofs, longer gutters, more downspout drops, larger attics, and larger foundations. It’s easy to see why home inspection companies use this measurement in their pricing. Less commonly, some home inspection companies in Indianapolis also consider the number of bathrooms and kitchens (in the event there is an in-law suite, or second kitchen for entertaining). These both add work and time to the inspection. This element could be considered as affecting complexity. Another facet of complexity is building type. If the home being inspected is a condominium, most home inspectors in Indiana will charge quite a bit less than what they would for a single-family home of a similar size. This is because many of the inspected systems, such as the roof, the external walls, and the foundation- are the responsibility of the condo association, and not the individual unit owners. Most condo buyers are therefore not concerned with these items. Even so, excluding these systems from a home inspection does come with added risks. We cover that in more detail in another article.
How does the age of a home affect the cost of a home inspection in Indianapolis?
Another dimension that affects the cost of home inspection in Indianapolis is the age of the home. The reason for this is twofold. First, and primarily, newer homes tend to have fewer defects that the inspector needs to write up in the inspection report. Describing and explaining defects takes time. The more there is to write up, the more time involved. The other reason is that older homes can be harder to inspect. Pull-down attic access stairs did not really become a standard builder’s item in new construction until fairly recently. Prior to that, they had to be installed by a homeowner or contractor after purchasing the home. Typical attic access was through a scuttle in the ceiling, typically in a bedroom closet. Not only was there no built-in ladder, but the space is typically crowded, and the scuttles were very small- typically only half or less of today’s acceptable minimum standard. Add to that the need to bring a stepladder, and you have an attic that may or may not in fact be accessible at all. Older houses in the Indianapolis area also have a higher probability of having been built on an unfinished basement or crawlspace, whereas newer homes lacking a basement are commonly built on a slab floor. Crawl spaces can be difficult to access, are often wet, muddy, infested with insects, spiders, and rodents and can be quite dangerous to the home inspector. We discuss crawlspace dangers in another article in more detail. In short, if a home is built on a crawlspace, expect to pay a bit more to have it inspected.
Does the location of a home affect the cost of a home inspection in Indianapolis?
The location of a home could affect the price of a home inspection in the Indianapolis area, but this will really depend on the individual home inspection company. Some inspectors will charge a small amount extra for the drive distance, whereas some inspectors do not differentiate. For example, an Indiana home inspector based in Carmel may likely charge extra to perform a home inspection in Martinsville or Franklin. Conversely, a multi-inspector firm may have a home inspector who lives closer to those areas, and would not need to add a drive cost. At the end of the day, it is better to hire the home inspector you want, even if that means paying a little extra.
What other factors influence the cost of a home inspection in the Indianapolis area?
In addition to the factors already discussed, another big determinant of the cost of a home inspection in Indianapolis has to do with the scope of the inspection. In the condo example mentioned earlier, if the inspection excludes certain systems it would become less expensive. Indiana law stipulates what is to be included in a home inspection. Any reduction to that scope must be agreed to in writing before the inspection starts. Similarly, there are additional inspection services that are not included in a standard home inspection, which can be added. Obviously, adding more inspection services will increase the price. Common inspection add-ons include Infrared/thermal imaging, radon testing, mold testing, wood-destroying insects inspection (WDI inspection), sewer line inspection, well water testing, a more detailed fireplace inspection, and a deeper dive into anything else of concern with a licensed contractor or engineer. In addition to all of these various extra services, sometimes something is not accessible at the time of the first home inspection, requiring the home inspector to return at a later date. Since it is common for the home seller to be in the process of preparing to move by the time the home inspection is ordered, there may be boxes or other personal property blocking access to the attic. This is quite common, actually. Although it is usually just a simple oversight, the home inspector in Indiana will not move significant amounts of personal property to access the attic. What happens at this juncture is either the client must move forward with an incomplete inspection, or coordinate with the seller to move their stuff, and have the home inspector return to inspect the attic when it is accessible. This will trigger a re-inspection fee with most home inspection companies in Indianapolis and the surrounding area. The fee is usually fairly nominal, maybe $100, being intended to offset the costs of making another trip to the property and updating the home inspection report with any new findings.
Is there data showing what the average home inspection costs in Indiana?
By now, you should have a better understanding of the myriad of variables that influence home inspection cost in Indianapolis and the surrounding area. You probably also see why it is difficult to put a number on “average”, because there is such a wide diversity in the housing market. In spite of this, it seems to be a natural human desire to put a number to “average” or “typical”. At least one inspection software company has attempted to do just that. This particular software company, which I will not name, is a very popular option used by home inspectors all over the country. This company recently released an analysis of their own data. Because their software bundle includes scheduling and payment in addition to the reporting process, this company saw itself as uniquely positioned to be able to crunch the numbers. Anyone who has worked in data analysis for very long knows two facts about data- your analysis can only be as good as the data, and the data is never as good as you think it is. When this company released their findings of what was the “average” cost of a home inspection by market, they believed they had a good analysis. But feedback from home inspectors all over the country was that the numbers were way too low- not even close. As it turned out, the company lacked the ability to identify which inspections were a full home inspection vs. a partial inspection. Nor could they identify which were re-inspections. In addition to the blocked attic mentioned earlier, re-inspections are also commonly used to verify repairs made. Some inspections, in fact, are periodic visits made to a building while it is under construction. All of these would be significantly less per visit than a full home inspection. So, as it turned out, their great dataset was not so great after all, and the conclusions drawn were ultimately not valid. I only relate this story to warn you- don't trust numbers you see online that are derived from data analysis. With the abundance of AI developed (crap) articles on the Internet, these false results are being repeated over and over by bloggers who don't know the difference. It could potentially hurt the industry when all the home inspectors you contact seem to be charging 30-40% more than what they are "supposed" to be charging. It's not a good start to an important relationship. Having said all of that, you probably came here looking for a number, or a range- and I hate to disappoint. But let’s consider what you REALLY want to know, if you’re in the market for a home. What you really need to know is how much to budget for home inspections. The typical home buyer knows their payment budget, how much down payment they need, and how much for closing costs- at least a very good estimate from their lender. So let’s approach this question from a budgeting perspective, instead of a “how much” perspective. From a budgeting perspective, you as a potential home buyer should be prepared to pay for several inspections. Why? Suppose you find a house you like, put it under contract, and send in your home inspector. The inspection reveals severe defects that the seller is unwilling or unable to complete within the time frame of the contract. You decide to walk away, and find a different home. While the inspection was money well spent (you avoided taking on major, expensive repairs), you will have another inspection process all over again with the next home. As an example, when I bought my house last year, it was the second one I put on contract. The first one was being flipped, and the inspection revealed that the seller was so busy putting lipstick on it, that they completely ignored the structure and mechanicals. There was a significant foundation issue that had already been covered up with drywall in the basement, among other things. The second home I put under contract, the inspector had difficulty in accessing the attic, resulting in not just one, but two re-inspection visits. Additionally, there was a fireplace that warranted a closer inspection by a licensed chimney sweep (I really wanted to use it!), and that cost nearly as much as the home inspection. I also learned that my fireplace was not safe to use in its current state- a big disappointment, but it was potentially life-saving information. By the time the dust settled, I had spent nearly two thousand dollars on inspections between the two houses. But, I had valuable information. It was money well spent. To put my 2k spend into perspective, the house I ended up buying was a well-maintained 80-year-old two bedroom house on a crawlspace. So we have a smallish house, potentially with small price increases for age and crawlspace (I don't know that company's pricing model for sure). The main inspection was somewhere around 500 dollars for each house. The first house had a detached garage, which incurred an additional charge. So, this is how I would like you to look at the question:
How much should I budget for home inspections in the Indianapolis area?
As we detailed throughout this article, the cost of home inspection in Indianapolis can vary substantially, depending on a long list of variables. As a home buyer, your concern should not be to find the cheapest home inspection you can. You should find a home inspector who you “click” with- someone with whom you can communicate effectively, and who communicates well in return. After all, it does not matter what your home inspector finds, if they cannot communicate it to you effectively. With all that being said, as a home buyer, you need to strike a balance between being financially ready for a potential string of home inspections and not letting fear stop you from moving forward. As a rule of thumb, I would recommend to be prepared to spend around 1% of the purchase price on home inspections (this percentage will come down as the home price goes up). Whatever you don’t use for inspections could be used for minor repairs, new carpet, window coverings- you get the idea. I personally would rather have a little left over, than run into a situation where some inspection items are left ignored. If you don’t get a radon inspection, for example, do you plan to do that later? You certainly can, but how long do you want to live with a radon problem that you may or may not have, before knowing for sure? In conclusion, home buyers who budget around 1 percent of their home price for inspections should have more than enough ability to go through the home purchase process without running out of resources before closing.
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