Home Inspection - Finding and Working With a Home Inspector
By Aaron Larson
Law Offices of Aaron Larson
July, 2004
Contents
Imagine that you just purchased a house, having paid a home inspector several hundred dollars to perform an inspection of the premises in advance of closing. Now you find you have a problem with your well - and the inspector says it isn't his problem. And you have a serious problem with the electrical wiring, which the inspector said was in good shape, and are looking at an expensive repair - but your contract with the inspector limits any damages from a bad inspection to the fee you paid. Your real estate agent said this inspector was great - how did things go so wrong?
The Home Inspection Business
In recent decades, home inspection has grown to be a very profitable business.
A good home inspection will examine a property for defects, from the top of the roof to the bottom of the foundation, including the plumbing and electrical systems, heating, cooling, and ventilation systems, windows, doors, siding and trim, visible insulation, and the physical integrity of the visible structure. A good home inspection will reveal those areas of a home in need of maintenance or upkeep, as well as those which may require more costly repair (e.g., a new roof or furnace), and the associated cost.
Even with the purchase of a new home, an inspection can be very valuable. Even the best builder can make a mistake.
Potential Problems With Home Inspections
The biggest potential problem areas with home inspections are ensuring that the inspector is qualified and will be sufficiently diligent, and in making sure that all relevant aspects of the property are inspected. You should get independent referrals to a home inspector, rather than relying upon the recommendations of those who might profit from the sale of a property (e.g., the owner, or a real estate agent or broker). If you are purchasing a home with a septic field, you need to either hire an inspector who can inspect the septic system and perform a perk test or utilize a second inspector to verify the condition of the field.
The same applies to properties which may have environmental problems (e.g., a lot which has been used for illegal dumping, properties containing or which have ever contained above-ground or underground storage fuel storage tanks, and properties dependent on well water), or may have an insect or termite infestation. If you will need to repair or replace a septic system, dig a new well, engage in a costly environmental clean-up project, or bring in an exterminator and repair insect damage, you will obviously benefit from knowing what will be required and its cost before you purchase a property.
Protecting Yourself
When you hire a home inspector, you can avoid problems.
Understand the Scope of the Inspection - It is not unusual for a home inspector to exclude certain activities from the inspection service. For example, the inspector's contract may state that the inspector will not inspect wells, septic fields, or gas storage tanks. If the property you are purchasing has ever had a gas storage tank, you should consider utilizing an inspector who knows about those tanks and the environmental problems they can create. There are also specialized inspectors who will supplement your primary inspector's work, for example by testing a well for its quality and rate of flow.
Be Careful With Recommendations - You may really like and trust your real estate agent, but recall that you are a client and the real estate agent will probably make a hefty commission when the deal closes. There are cases where real estate inspectors have been discovered to have literally promised the real estate agents they work with that they will not cost them a sale - no matter how severe the problems are with a property. Additionally, even without such an agreement, inspectors know that if they cost a real estate agent a sale they risk not receiving additional referrals. It is best to seek your referral from a neutral person, and to seek out an inspector who is not afraid of alienating the real estate agents working on the sale.
Check the Inspector's Credentials - How did the inspector qualify to perform house inspections? Is the inspector certified by any organizations? How many years has the inspector worked in the field? How many home inspections has the inspector performed? How many of those inspections were of similar properties? Is the inspector insured? What type of report will the inspector provide - and is an example available? What is excluded from the inspection? What will be the total cost of the inspection?
Read the Contract - When you sign a contract with a home inspector, make sure you read and understand any limitations on the work the inspector will perform, and any guarantees or warrantees relating to the inspector's work.
Avoid Conflicts of Interest - In addition to the conflicts previously described, where the person recommending an inspector may have an interest in the outcome of the inspection, you should also be wary of an inspector who intends to profit from any problem discovered. For example, if you utilize an exterminator to inspect for the presence of termites, the inspector has an incentive to find evidence of infestation and to sell you the extermination services. While some inspectors will be honest despite a conflict of interest, you may wish to play it safe by utilizing home inspection services which do not also provide remedial services.
Understand the Limits of an Inspection - Inspectors are called upon to inspect homes which are often furnished, and usually have floor coverings. Many homes up for sale are also freshly painted. While a good home inspector may be able to detect a problem hidden behind a fresh coat of paint or a carpet, many significant problems cannot reasonably be detected without looking behind a wall or under the floor covering - and it is an exceptionally rare homeowner who will permit that type of intrusion. Also, if some of the utilities are off (e.g., gas, water, electrical), it won't be possible to perform a complete inspection. You may wish to have your inspector accompany you on a final walk-through in advance of closing, after the seller's property has been removed from the premises.
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