Home Inspection; What You Need to Know

Well it looks as though we are having another good spring real estate market and chances are pretty good, that if you are a serious home buyer you will be signing a contract to purchase that will be subject to a home inspection. There has been a lot reported lately on the subject and you may be feeling nervous about the inspection process, so I’ve outlined a few guidelines for you here to illustrate your rights and responsibilities.

Home inspections can be a wonderful thing. With the correct inspector, the process can be very educational as well as a fantastic protection for you. There are few things as frustrating and infuriating as purchasing a new home and then developing a major problem, roof leak, heating problem and the like. But before we get into the matter of inspector selection, let’s talk a little about the protocol.

Because home inspections are typically performed following the successful negotiation for your new property, it is incumbent upon you to move this process along as rapidly as possible. You see, although the seller is obligated to honor the sales agreement, the buyer has a giant loop hole in the home inspection clause. Therefore, as the seller really doesn’t have a sale until your inspections are complete, fairness dictates that you complete the process as quickly as humanly possible. Although the contract will establish the time parameters, finishing early is in the seller’s best interest. If in the worst case, you end up not buying the place due to something you have found in the inspection, it enables the seller to get the house back on the market.

So how does the process work? You are given a period of time in which to complete your inspection of the property. Upon completion, items of a serious nature are brought to the seller’s attention, for repair. At that point the seller may agree to make the repairs, or not. If they agree everything goes forward, if they refuse to make the repairs it then becomes the buyer’s decision. If you chose to make the repairs, the contract advances. If you do not wish to assume the responsibility, the contract ends and all parties are released. Although there is a little more to it than that, in a nut shell this describes the process.

Now what about inspectors? In the olden days of my youth, we utilized the services of specialists to inspect specific household components. For example, if as you were viewing the house you determined that the roof looked shaky, you would employ a roofer to inspect, or if the furnace was in question you might hire a heating contractor for an opinion. In many ways that was a superior process as no generalist can give you as precise an opinion as the specialist. However, the problem, in those day, was that if you employed an unscrupulous contractor, the roof (or whatever) might need to be replaced even when it was fine. Imagine that.

So along came home inspectors, individuals with nothing to gain, nothing to influence their opinion, as they will not be involved in the repair. Here are two major cautions when looking for an inspector, are they qualified and are they overly concerned with CYA. What you are interested in is a fair unbiased look at the property by someone who knows what they are looking at. In the beginning, anyone with a screw driver and flashlight could call themselves a home inspector. There weren’t and still aren’t any State licensing requirements for this profession. Today, inspectors do have to obtain certification, but that certification is awarded by one of the home inspector’s professional organizations rather than a state licensing board, and that cert isn’t that difficult to obtain, so instances of incompetence still arise. There are many hard working inspectors who know their business and continue to educate themselves in their field, yet you will still find those who have zero qualifications to inspect your home.

Let’s consider what to look for in an inspector. First are they insured? What if they make a mistake and you end up with a property that needs correction, will they stand behind their report? Many inspectors make their reports so vague that after reading it you still have no idea of the condition of the property. You want a report that is clear and provides a definite opinion of condition. The last thing you need is an inspection that seems to indicate that you need five more inspections (structural integrity, roof, furnace, electrical and plumbing). So it wouldn’t be a bad idea to ask to see a sample of the sort of report the inspector utilizes. Look for clear language, giving distinct guidance.

Ask about the inspector’s background and credentials. Is there any building experience there. One of my favorites is a fellow who has been an electrician, roofer and heating sales person, as well as having acted as a general contractor. This guy knows what he is looking at and isn’t afraid to take a position.

Another nice feature of an experienced and competent inspector is that he is happy to take you on the inspection with him and provide maintenance tips as he goes through the property. This approach enables you to save money in the long run, by helping you to understand the maintenance of major household components.

The final bit of advice is to listen to your realtor. They have done this before so follow their recommendations and by all means make your selection prior to finding that dream home. After all, you know you will ultimately buy a home, and you will get yourself pre-qualified for your mortgage, so why not interview a few inspectors to determine who you will use when the time comes.

Alright, now you know what I know, so get out there and get yourself some peace of mind.

Gary Straub is the AVP for mortgage production with Fifth Third Bank of Western PA and has been a real estate professional in the Pittsburgh area for 35 years.