What Is A Home Inspection?
A home inspection is a thorough and systematic
evaluation of the condition of a residential property.
It is a complete physical exam of the general integrity,
functionality, and overall safety of a home and its
various components. The purpose of this process is to
ensure that home buyers know exactly what is being
purchased, prior to completing the transaction.
In the course of a home inspection, the inspector will
evaluate the foundation, framing, roofing, site
drainage, attic, plumbing, heating, electrical system,
fireplaces, chimneys, pavement, fences, stairs, decks,
patios, doors, windows, walls, ceilings, floors,
built-in appliances, and numerous other fixtures and
components.
In all homes, even brand new ones, some building defects
will inevitably be discovered during the inspection. All
pertinent findings will be detailed in a written report
for the buyer's reference and review, and the inspector
will make a complete verbal presentation of these
conditions for those who attend the inspection.
This information enables a home buyer to make educated
decisions about a home purchase: whether to complete the
transaction, whether to ask the seller to make repairs,
or whether to buy the property as is. Buyers can also
determine how much repair and renovation will be needed
after taking possession, which problems are of major
concern, which ones are minor, and what conditions
compromise the safety of the premises.
A thorough inspection enables a home buyer to avoid
costly surprises after the close of escrow. It is an
indispensable component of a well-planned purchase.
How To Choose A Home Inspector
Home inspectors are not created equal. As with any
profession, some practitioners inevitably outshine
others. To aid in choosing a qualified home inspector,
interview each prospect, using the following criteria:
1) Professional Affiliation: In most states, the only
home inspector standards are those enacted by
professional associations such as the American Society
of Home Inspectors (ASHI), the National Association of
Home Inspectors (NAHI), and similar state organizations.
Membership requires adherence to strict standards of
practice and participation in ongoing education. When
you choose a home inspector, specify membership in one
of these recognized guilds. And beware of those who
claim adherence to these standards without being
members.
2) Inspection Experience: Home inspectors are often
perceived as general contractors who happen to inspect
homes. This view underlies an essential misunderstanding
of the home inspection process. Although building
knowledge is essential to a home inspector, construction
itself has little or no relation to the skills of
forensic investigation. A home inspector is primarily a
property detective - someone who observes and ascertains
defects. Inasmuch as a traffic patrolman is not a crime
detective, home inspectors should be viewed as distinct
from other contracting professionals. The average
apprenticeship for a home inspector is approximately
500-1000 inspections. For contractors who disagree, I
propose the House Detective Challenge: Call the nearest
professional home inspector with at least three years of
full time field experience, and conduct separate
inspections of the same building. Then compare findings.
That's where the consumer protection difference becomes
apparent.
3) Errors & Omissions Insurance: A critical aspect of
professional accountability is insurance for a faulty
inspection. Undiscovered defects can range from minor
maintenance problems to structural failure; from leaking
faucets to major fire hazards. Inspectors who take their
business seriously carry insurance for these untimely
mistakes. Note: There are two types of E&O insurance.
The best of these is a 'per occurrence' policy, because
coverage remains in effect, even after the inspector
goes out of business. The other type is called 'claims
made.' This can be effective on the date of inspection
but invalid when it's time to file a claim.
4) Building Code Certification: The primary focus of a
home inspection is not code compliance. Nevertheless,
property defects often have their basis in code-related
standards. To ensure inspector competence in this area
of knowledge, seek someone with building code
certification. This is required for municipal building
inspectors in most areas of the North America.
5) Ask for a Sample Report: The proof is in the product:
So request a copy of a previous report. The best format
should be not only detailed and comprehensive, but
easily interpreted, making a clear distinction between
defective building conditions and 'boiler plate'
verbiage. Some reports are so encumbered with
maintenance recommendations and liability disclaimers,
that pertinent information about the property is
obscured. A quality report lets defect disclosure stand
out distinctly, in contrast with less pertinent data.
6) Let the Choice Be Yours: When choosing a home
inspector, don't rely on others. The final selection
should be your own. New and inexperienced inspectors
often obtain professional recommendations, regardless of
competence or lack thereof. You want the most
meticulous, detailed inspector available -- the one who
will save you from costly surprises after the close of
escrow. The best inspectors are often labeled as 'Deal
Killers' or 'Deal Breakers.' Someone with this
reputation is likely to provide comprehensive consumer
protection.
7) Avoid Price Shopping: Inspection fees vary widely.
The price of a quality inspection is typically between
$250 and $300 for an average size home. Lower fees
should be regarded with suspicion, as they often
identify those who are new to the business or who spend
insufficient time performing the inspection. A home is
the most expensive commodity you are likely to purchase
in a lifetime. One defect missed by your inspector could
cost 100 times what you save with a bargain inspection.
The best method of price shopping is to shop for
quality.
What's The Big Deal About Home Inspection?
Why does my Real Estate Agent harp on getting a home
inspection? Do you think this is a needless expense?
Think again.
Since the late 1980's, disclosure of property defects
has become the primary focus of most residential real
estate transactions after first emerging as a service
during the mid-1970's. Gaining gradual recognition over
the past decades, home inspectors attained prominent
acceptance as a distinct and essential profession
providing the service of inspecting and disclosing
property defects.
To those who approach real estate with the old 'as-is'
mind-set, the advantages of home inspection are not
immediately apparent. But make no mistake; a thorough
inspection can shield you from costly discoveries after
the close of escrow. It's one of the best consumer
protection services available.
Every home, regardless of age or quality, harbors a
small, medium, or large list of defective conditions.
Some are obvious, while others are only apparent to
those who know how and where to look. When you hire an
experienced, qualified home inspector, there is no
question as to whether unknown defects will be found;
but rather what, where, and how serious, dangerous, or
expensive the defects will turn out to be.
Most homebuyers spend fifteen minutes to an hour walking
through a home prior to making an offer. At best, this
provides a general impression of the overall physical
condition. But what about foundations and structural
framing, attic construction, insulation, ventilation,
and roof conditions? These are just a few of the
hundreds of considerations included in a home
inspection.
Above all, let's not forget building safety. An
inspector can alert you to red flag issues involving the
electrical wiring and fixtures, fireplaces and chimneys,
gas fixtures such as furnaces, water heaters, cook tops,
and ovens, railings at staircases and decks, tempered
safety glass in required locations, and automatic
reverse of garage door openers.
Furthermore, an inspector can forewarn you of problems
involving faulty ground drainage, defective plumbing,
substandard construction, firewall compliance, building
settlement, leakage, general deterioration, inoperative
fixtures, and so much more.
Clearly, your agent understands this process and the
importance of equipping you to make an informed purchase
decision. Be thankful that your agent is working to
protect your financial interests. With a detailed home
inspection, you will know what you are buying, before
you buy it. And that could save you thousands of dollars
and years of regret.
Do New Homes Need Inspection?
The belief that a new home is flawless, simply because
it is new, is an unfortunate piece of popular mythology.
Since when is a brand new product exempt from possible
defects? We often hear of brand new cars recalled by
Detroit; experienced sailors can tell you of brand new
boats that have leaked; and even brand new parachutes
have been known to fail when the ripcord was pulled. As
for new homes, anyone who has worked in building
construction knows that contractors and trades people,
as typical members of the human family, are prone to
occasional, or not-so-occasional, errors and oversights.
Inspectors polled from across the US on new home defects
unanimously agree that most, if not all, new homes are
not totally free of defects. None have ever discovered a
perfect specimen, regardless of the quality of
construction or the integrity of the builder.
Even when the builder warrants the work for one full
year, such guaranties are of no benefit unless inherent
defects are discovered. Unfortunately, many types of
building problems and safety violations do not become
apparent for many years. A faulty wiring condition might
not be revealed until it damages your computer or causes
a fire. Other defects might only be discovered when you
finally resell the property, and the buyer decides to
hire a home inspector.
The list of faulty conditions that have been found in
new homes is extensive and includes such items as,
defective roof installation, improper fireplace
construction, errors in electrical wiring, excessive
water pressure, fire safety violations, unsafe venting
of heater exhaust, leaking drains, faulty site drainage,
hot water piping connected to the toilet (can you
imagine a steaming bowl?), etc, etc. In one infamous
case, a new home was built and approved on a concrete
slab without a perimeter foundation. Obviously, we're
not likely to find a major list like this in any
particular new home, but every new structure contains a
few undisclosed defects, sometimes minor, sometimes not.
New homes are often presumed to be exempt from human
error, and consequently many close escrow without the
benefit of a final examination. For buyers preparing to
make such a large investment, assumptions about quality
of workmanship can be financially fatal.
Your best advice is to take nothing for granted. The
cost of an inspection is incidental when compared to the
price of a new home. A qualified home inspector will
most assuredly find items that need repair. Better to
discover them now than after the close of escrow.
Inspection Report Not A Repair List For
Seller
So, you've hired a home inspector to make a complete
repair list for the home you're buying. The inspector
did a thorough job and disclosed some serious problems
with the property. Maybe it was in the plumbing, or the
electric wiring. Perhaps it was the roof. But the seller
refuses to fix anything. Is the seller responsible to
make these repairs? Were you under the impression that
the sellers must repair the problems discovered by home
inspectors?
This can be all very disillusioning. This is a common
misunderstanding about the purpose of a home inspection.
People often view an inspection report as a mandatory
repair list for the seller. The fact is sellers are not
required to produce a flawless house. They have no such
obligation by law or by contract.
With a termite report, requirements are different: Real
estate contracts usually obligate a seller to repair
conditions classified as 'section one' in the termite
inspector. Section one includes instances of active
infestation -- termites, fungus, dryrot, etc. Other
faulty conditions, such as earth to wood contact,
generally do not require action on the part of the
seller, unless infestation is found.
With a home inspection, most repairs are subject to
negotiation between the parties of a sale. Typically,
buyers will request that various conditions be repaired
before the close of escrow, and sellers will usually
acquiesce to some of these demands. But with most
building defects, sellers make repairs as a matter of
choice, not obligation; to foster good will or to
facilitate consummation of the sale. There are, of
course, those few rigid sellers who will flatly refuse
to fix anything, even at the risk of losing the sale.
Fortunately, this response is the exception, rather than
the rule.
Sellers maintain the legal right to refuse repair
demands, except where requirements are set forth by
state law, local ordinance, or the real estate purchase
contract. Legal obligations include earthquake straps
for water heaters and smoke detectors in specified
locations. Contracts usually stipulate that fixtures be
in working condition at the close of escrow, that
windows not be broken, and that there be no existing
leaks in the roof or plumbing.
Before you make any demands of the seller, try to
evaluate the inspection report with an eye toward
problems of greatest significance. Look for conditions
which compromise health and safety or involve active
leakage. Most sellers will address problems affecting
sensitive areas such as the roof, fireplace, gas burning
fixtures, or electrical wiring.
Routine maintenance items warrant a lesser degree of
concern and should not be pressed upon the seller. If
the house is not brand new, it is unreasonable to boldly
insist upon correction of all defects. Such demands can
alienate the seller and kill the sale. Your willingness
to accept minor problems may persuade a seller to
correct conditions of greater substance.
The purpose of a home inspection is not to corner the
seller with a repair list. The primary objective is to
know what you are buying before you buy it. All homes
have defects; it's not possible to acquire one that is
perfect. What you want is a working knowledge of
significant defects before you close escrow. As the old
sea captain once told me: 'It doesn't matter if your
boat has a leak, as long as you know it's leaking.
Home Inspection Limited To What Is Visible
ASHI (The American Society of Home Inspectors) has
established accepted standards of practice and codes of
ethics, which define the general scope of a home
inspection. These guidelines have come to be the
acknowledged standards by which qualified home
inspectors perform their services.
According to these criteria, a home inspection is
limited to conditions that are visually discernible.
Specifically excluded from an inspection are conditions
which are concealed from view, such as items contained
within walls, ceilings, and floors, or which are buried
beneath the ground. According to ASHI standards,
inspectors are not required to perform dismantling of
construction or excavation of ground surfaces to
discover conditions that are not normally visible.
For clarification of the standards by which your
inspector performed his services, I recommend that you
review the inspection report. Most inspectors are
careful to define the scope and limitations of their
inspections. These parameters are generally outlined in
either the contract or the report or both. Nearly all
home inspection contracts clearly specify that concealed
items are outside the scope of the inspection.
Additionally, most inspection reports specifically
identify ASHI standards as the basis upon which the
inspection is to be performed.
How To Negotiate After A Home Inspection
The home you're buying is scheduled to be inspected.
When you get the inspection report, how do you know
which problems the seller should fix and which ones to
accept as is? Are there some rules or guidelines to
determine how this works?
In most cases, a residential sale is contingent upon the
buyers' acceptance of the home inspector's report. This
means that you, as buyer, have a specified number of
days to accept or decline the property in "as is"
condition. If you decline acceptance, you have four
basic choices:
1) Ask the sellers to make a few repairs;
2) Ask the sellers to make many repairs;
3) Ask the sellers to reduce the sales price;
4) Decline to purchase the property.
If you request repairs or a price adjustment, based upon
the home inspection report, the sellers also have
choices. They can:
1) Agree to all of your requests;
2) Agree to some of your requests;
3) Agree to none of your requests;
4) Decline to sell you the property.
The sellers' only obligation is to address defects that
are named in the purchase contact or required by state
and local laws. If the contract specifies an "as is"
sale, the sellers may refuse to make repairs of any kind
or to adjust the price in any way. Lawful exceptions may
include strapping water heaters for earthquake safety,
providing smoke alarms at specified locations, or
upgrading plumbing fixtures for water conservation.
Aside from such requirements, completion of the sale
hinges upon whatever is agreeable between you and the
sellers.
Most Common Defects Found During a Home
Inspection
Construction defects and safety violations are
surprisingly common, but the majority of home inspection
findings tend to be routine in nature. Some, in fact,
rear their unsightly heads as often as the sun rises;
not just in older homes, but often in brand new ones,
even before the smell of new paint has waned. The
following, therefore, is a list of common defects likely
to appear in a typical home inspection report:
Roofing Defects:
Problems with roofing material, either due to aging and
wear or to improper installation, are likely to be found
in a majority of homes. This does not mean that most
roofs are in need of replacement, but rather that most
are in need of some type of maintenance or repair.
Ceiling Stains, Indicating Past or Current Roof
Leaks:
The problem here is that you often can't tell if the
roof still leaks, unless it is inspected on a rainy day.
Some stains are merely the residual effects of leaks
that have been repaired. There is also the possibility
that ceiling stains were caused by a former plumbing
leak in the attic.
Water Intrusion:
Water intrusion into basements or crawlspaces due to
ground water conditions can be pervasive, difficult to
resolve, and often very damaging to buildings.
Correction can be as simple as regrading the exterior
grounds or adding roof gutters. Unfortunately, major
drainage improvements are often the only practical
solutions, requiring costly ground water systems such as
French drains designed by experts such as geotechnical
engineers.
Electrical Safety Hazards:
Electrical safety hazards, especially (but not always)
in older homes: Examples are ungrounded outlets, lack of
ground fault interrupters (shock protection devices),
faulty wiring conditions in electrical panels or
elsewhere in a building, etc. Such problems may be the
result of errors at the time of construction, but very
often they are due to wiring that was added or altered
by persons other than qualified electricians.
Rotten Wood:
Rotted wood at building exteriors and at various
plumbing fixtures: In places where wood stays wet for
long periods, such as roof eaves, exterior trim, decks,
around tubs and showers, or below loose toilets, fungus
infection is very likely to occur, resulting in a
condition commonly known as dry rot. If left unchecked,
damage can become quite extensive.
Building Violations Where Additions and Alterations
Were Constructed without Permits:
Homeowners will often tell a home inspector, "We added
the garage without a permit, but it was all done to
code." This statement is a red flag to most home
inspectors, because no one could possibly know the
entire building code, and the average person without
professional involvement with the code is likely to know
very little of it. Whenever an owner offers code
assurance, problems are likely to be found.
Unsafe Fireplace and Chimney Conditions:
These can range from lack of maintenance, such as
neglecting to hire a chimney sweep, to faulty
installation of fixtures. Most common among these are
the lack of spark arrestors and substandard placement of
wood-burning stoves. Free-standing fireplaces are
typically installed by home owners and handymen, people
without an adequate knowledge of fire safety
requirements. The most common violations in these cases
involve insufficient clearance between hot metal
surfaces and combustible materials within the building.
Fire hazards of this kind are often concealed in attics,
where they remain undiscovered until a roof fire occurs.
Faulty Installation of Water Heaters:
In most localities, less than 5% of all water heaters
are installed in full compliance with plumbing code
requirements. Violations can include inadequate
strapping, improperly installed overflow piping, unsafe
flue conditions, or faulty gas piping. It should also be
remembered that today's water heaters are designed with
a shorter lifespan. In fact, leaks can develop in units
that are only five years old.
Hazardous Conditions Involving Gas Heaters:
Most gas-fueled heaters are in need of some maintenance,
if only the changing of an air filter or a long-overdue
review by the gas company. In some cases, however, gas
heaters contain life-threatening defects that can remain
undiscovered until too late. These can range from fire
safety violations to the venting of carbon monoxide into
the building. A cracked firebox, for example, can remain
undiscovered unless found by an expert or until tragic
consequences occur.
Firewall Violations In Garages:
Special fire-resistive construction is required for
walls and doors that separate a garage from a dwelling.
Violations are common, either due to faulty
construction, damage or alterations to the garage
interior, or changes in code requirements since the home
was built. In older homes, where firewalls are not
installed, sellers and agents will often say that the
building predates the code. However, the fire separation
requirement for residential garages dates back to 1927.
Minor plumbing defects:
These are commonly found, including loose toilets,
dripping faucets, slow drains, leaking drains, hot water
at the right faucet, and so on.
Failed seals around windows:
This condition is routinely found at dual pane windows,
resulting in fogging. This is most common with windows
manufactured during the 1980's.
An unabridged list of likely home inspection findings
would probably fill a few volumes. For home buyers, this
underscores the importance of a thorough evaluation
prior to closing escrow. This is why your agent will
strongly advise you to obtain a Home Inspection.
