I'm a home inspector wondering if I'm now being asked to work for the lender and the mortgage insurance companies and what, if any consequences might affect the home buyer consumer.

I have seen a growing trend over the last 6 months or so, where my buying client's lender and even the mortgage insurance companies have asked for my professional opinion on the physical condition of a subject home, stemming from the appraiser's comments.

I have no problem doing this as it helps my client's in the home purchase process. After all, I am in the service business.  I obtain permission from my client to respond and discuss the home inspection with the lender or related parties on their behalf.  My statements are qualified, limiting my liability with no guarantee or warranty to the home's condition and reference the initial inspection report, as the case should be.

I understand why these questions are being asked of the inspector.  I also think it's a testament to the growing value and credibility of the home inspection industry and service today.

However, it does raise a couple of questions/concerns:

•1)      COST - If this becomes a common practice, I will need to charge my client for the time and added liability exposure. Based on half dozen or so I've been involved with, a client could be charged an additional $95.00.  There tends to be a lot of back and forth requests & confusion on what the underwriter is asking/needs and how to wordsmith it to meet the request, maintain the integrity of the inspection and report and not provide more than what's asked for (see following consequence point).

•2)      CONSEQUENCES - These requests so far appear to have been based on the appraiser's stated observation(s) raising concerns with the underwriter, needing a better understanding of the apparent physical condition and risk as it may affect the loan's collateral asset.  My home inspection observations are more comprehensive as the "expert" opinion.  Apparently the underwriter knows the appraiser is not a qualified home inspector.   Consequently, each case has come with the risk of opening a new can of worms for the buyer in obtaining the loan or obtaining the loan with the initial terms as my (inspector's) observations may reveal a bigger or unknown concern for the underwriter than identified in the appraiser's inspection. 

•3)      CONFLICT of INTEREST - Maybe?  My client, the buyer/borrower, has a different objective and perspective than the lender/mortgage insurer has regarding risk tolerances and purpose of the inspection.  They clearly are not the same.  So, a home inspection for a buyer may inadvertently cause problems with the financing because of the more comprehensive assessment of the home's physical condition and the lender/mortgage insurer are now expanding the physical condition into the lending process.  Under some scenarios, I could see a buyer foregoing a home inspection if it could conflict with the loan.  If that's the case, would the lender "require" a home inspection?  What if the buyer doesn't want or approve the disclosure of the home inspection to the lender?  What if the buyer, by a chosen option, pays for a home inspection only to have the inspection be the basis for denying the loan or modifying terms that won't work for the buyer?  They could incur some considerable out-of-pockets expenses (home inspection and appraisal) for information benefiting the lender and not them.

Anyhow, just some noted observations of the recent trends and changes in our market place.  I'm sure we'll all adjust accordingly.  More factors for a consumer to be aware of in the home buying process.

I hope this is helpful.  Any additional comments or insights to consider?

A firend recently provided this insight into why many short sale loans are delayed - it's not always due to lender delays.

Question:  How helpful is it for Realtors and homebuyers to have online web based inspection service ordering and scheduling?  

Very few home inspectors offer this, due to fear of putting their inspection service fees out in public for competitiors or price shoppers. 

Well, I just added this feature because of the positive feedback from some.  We'll see how it works.

Benefits:  Can't answer all phone calls at all times.  Should reduce risk of lost inspections due to short-term missed calls.

Should reduce time spent on phone with price checkers or people checking availability.

Should increase add-on services due to customer exposure of menu options.

Any thoughts?

This a a re-post of a response I made to "Should it be assumed, by the Buyer, that the Seller should bear the cost of repairing any and all defects uncovered during a home inspection? by Rick Schwartz.

I'm re-posting it for a second time with a new title because the original post responses raises the question with respect to some additional consideration below. 

Have you ever noticed the trends and range of responses people have? 

Anyhow as a Realtor, 1) how do you generally handle inspection objections and 2) do the following points provide any insight that might change your approach?

CONSIDERATIONS TO PREPARING INSPECTION OBJECTIONS: Although I don't get into making inspection objection recommendations to clients.  When asked I always tell clients to work with their Realtor.  However, I have developed some distinct observations as an experienced home inspector and former market analyst.  The following generalized and categorized buyer mindsets with respect to how inspection findings are viewed/used by Buyers.

Expectations of Buyers vs. The Seller's Representation of the Home's Condition. -A real situation I just had with a client explains this well.  The home was only a few years old, well maintained and decorated, and had the hardly lived in appearance.  The Seller's flyer marketed the home as "better than new."  My inspection found about a dozen issues to address, mostly maintenance type items and a couple of minor cost repair items with potential bigger consequences if not corrected sooner than later.   The Buyer was not discouraged with the inspections findings.  However, he stated to his wife (they were there with me for the entire inspection) that he (Buyer) wanted the Seller to fix everything.  He was surprised the inspection discovered anything as the Seller presented his house as being defect free (the Seller stated, "I've maintained this newer home and you shouldn't find anything") and the flyer said "better than new."    If you were the Buyer in this scenario, how would you respond? His expectations, as sold to him, were that the home was defect free and better than new.

Expectations of Buyers in a Buyers vs. Sellers Market - This one is self explanatory. Most Buyers are going to take advantage of market conditions and use it to their benefit.  Why not?  I thinks it's the Buyers (or Seller's) prerogative, depending on those market conditions.  Wouldn't you?

Risk Tolerance Level of Buyers -This one I find few Realtors either fully understand or take the time to understand their client's position on risk tolerance.  I use it to gage how I speak and interact with my clients in order to best communicate the inspection findings.  We all have different risk tolerances and this is especially true when making a big, if not the biggest purchase decision and emotionally charged purchase of buying a home.  The bottom line is some people want to eliminate as much risk as possible and others don't care as much.  Where your client falls on this scale will help answer this blog's posted question. For example, a low risk tolerant Buyer with "minor" inspection items, yet with the potential to become a bigger problem regardless of likelihood of occurrence, is more likely to request the Seller correct the items or provide an allowance.  I see this often, with the Realtor frustrated in trying to understand why the Buyer is being "nit-picky" or assuming the home inspector lead the Buyer to this position.  Regardless, I find this to be a very common occurrence that could be a useful means for a savvy Realtor to come out as a hero for their client by simply understanding the client's level of risk tolerance.

Negotiation Savvy of the Buyer - Many Buyers just don't know what options they have or how the purchase inspection negotiation process works and are not the subject of this Blog question or discussion.  However, other Buyer's are pretty sophisticated and actually look forward to using whatever inspection information they have to negotiate a better position with the Seller.  This may include a strategy of asking the Seller for everything, sometimes even upgrades.  Their approach is that they don't know what the Seller will do until they ask, so why not ask for everything as a starting point and make trade-offs from that point.  I've often heard back from Realtors how they were surprised the Seller agreed to correct or make financial allowances as requested by the Buyer.  I've seen banks with foreclosed properties under contract in "as is" condition give up concessions on repairs because the Buyer (or their savvy Realtor) simply asked for them. 

Here's another noteworthy observation. I've had investor clients ask me not to share the inspection report with their Realtor because they "didn't want the Realtor to interfere in their negotiation strategy." 

So as a Realtor,

1) How do you generally handle inspection objections?  

2) Did the aforementioned points provide any insight that might change your approach?

I hope some find this helpful.

Regards,

Jon Rudolph

This question was posted on www.Trulia.com by a real estate agent.

There were many answers, of course say "yes!" with elaboration of why.  I thought this relatively obvious question and answer actually deserved a more detailed and specific answer. 

A home Inspector's Answer to the question Are Home Inspections Worth the Money?

The biggest caveat to answering your question being the qualifications and ability of the home inspector.   It's in your best interest to find and select a qualified home inspector your are comfortable with choosing based on comparable qualifying criteria.    Some states have minimal standards and requirements for home inspectors and some do not.  Even with state requirements, you still need to qualify your choice in home inspectors to best ensure you are getting your money's worth.  Also, your Realtor may have some or one home inspector referral, it's still in your best interest to screen and qualify that home inspector.  Don't assume the nicest Realtor is going to refer the best qualified inspector.

Consider this; you are relying on the professional opinion, the observation skills, technical knowledge and communication skills of someone you may interact with for only a few hours at most, in order to make an informed and confident purchase decision on a home.  Are you willing to compromise your time to qualify and fee to hire a reliable and qualified home inspector professional?

Here's are two scary, yet very real considerations:

•·         For states that don't have home inspector requirements, such as Colorado, your home inspector could have NO qualifications, have served in prison for federal offense and received a Certified Home Inspector credential from the internet.  And you could be hiring that person to enter another person's home unattended.  Then relying on their "professional opinion" to make a home purchase decision.

•·         General Liability insurance.  If your inspector doesn't carry it or an adequate coverage, YOU are generally liable since you are hiring the inspector to go on someone else's property.  What if something is stolen or damaged?  Are you prepare to carry the liability because the home inspector you hired isn't?

Fortunately, there are a few simple questions you can ask to help ensure you are getting one of the many well qualified and reputable professional home inspectors.

Questions To Ask When Choosing A Qualified Home Inspector:

•1.       Do they carry general liability and errors & omission (E&O) insurance?

•2.       What, if any, standard of practice do they base their inspections (e.g., American Society of Home Inspectors (ASHI)?

•3.       What kind of certification, if any?  ASHI Certified inspectors is the only third-party accredited certification.  Some are simple online internet or correspondence courses.

•4.       What source & level of training, experience & education do they have?

•5.       How much time do they typically spend on an inspection?

•6.       What additional inspection techniques and tools do they use?

•7.       Are they impartial (e.g., independent of anyone with a financial interest in the results except the client)?  Did they pay or compensate some way for the referral?

•8.       How do they present results? Are clients encouraged to attend the inspection?

•9.       What do their clients say? Do they guarantee client satisfaction?

•10.   How much is the fee and what is it based on? Is it competitive for the services and qualifications provided?

•11.   How do their qualifications compare to the price?

I hope this helps.  Also see my blog (http://id-inspections.blogspot.com/) that goes into some more detail on Choosing A Qualified Homes Inspector and or our web site (http://www.id-inspections.com/Home) for Downloadable a Worksheet to compare home inspectors with this qualifying criteria

Home buyers and sellers often rely on thier hired Realtor to provide real estate transaction advice based on the Realtor's professional knowledge and experience.  Here's a Realtor question for consideration.

In many states, Home inspectors are not required to carry errors & omission insurance or general liability insurance.  Should a professional Realtor advise thier Buyer clients to hire an inspector that carries both types of insurance and their Seller clients not to allow an uninsured home inspector into thier home?  Do you provide such advice? Why or why not?

Northern Colorado Chapter American Society of Home Inspectors (NCC-ASHI) 

Proudly Hosted the 3rd Annual  Senior Safety Saturday -

a skill-based service that targets improving safety in older adults' homes     

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The Event

• FREE 40+ point Home Safety Check performed by local ASHI Home Inspectors, covering: Heating Systems | Water Heaters | Fireplaces | Electrical Components | Tripping, Falling and General Hazards | Fire Safety

• Seniors 65 and older are eligible | Must be homeowner and reside at the home | Must be present during safety check-up | Must sign liability waiver

• Participating local businesses will provided free or discounted products/services

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Result Overview of

Northern Colorado Chapter of American Society of Home Inspectors (NCC-ASHI)

SENIOR SAFETY SATURDAY (10/17/09)

•·         8 Volunteer Home Inspectors; 6 Participating Service Companies

•·         34 senior homes safety checked in one day

•·         106 Specific Safety Defect items reported (not counting recommended upgrades)

•·         % of the homes' Safety Defects reported (not counting recommended upgrades)

Unfortunately, we were limited to the number of homes checked.  We had many more requests then we were able to work into this year's program.  We hope these seniors will try for next year's program or contact one of our professional Certified ASHI Home Inspectors to have their home inspected for safety hazards, sooner than later.

Thank you to all the participating professional home inspectors, service providers and the Loveland Fire Prevention Bureau.

Thank you to the people that helped get the word out and promote this annual public service program.

BOO!  BE AWARE, TAKE ACTION!!!  Don't Let Your Halloween Turn Into a TRIP HAZARD Nightmare!!

Halloween can be the worst time for trip hazard falls, injury and liability as kids and parents of all ages walk and run onto your dark property eager to receive treats. 

Any small to large and irregular surface displacement can be a trip hazard and action should be taken to minimize risk.

Suggestions:  Use Halloween decorations as a means to obstruct and slow down foot traffic at sidewalks, driveways, patio, etc.; any walkway path that may pose a trip hazard.  For example, Caution Tape over a saw horse or hay bale across the hazards.  Use your imagination, for anything that might overt, alert and avoid a trip.   Adequate lighting will also help! 

 Oh yeah, get it fixed as soon as you can ;))

I.D. Property Inspections, Inc. wishes everyone a safe and enjoyable Halloween.

3rd Annual FREE Senior Home Safety Check-ups, Sat Oct 17th for Northern Colorado Senior Home Owners!

Realtors and other professionals in the real estate and home services industries, this is agreat reason to connect with past clients and inform them of this free community service or let them know to offer to inform their qualifying family members.

The Northern Colorado Chapter of American Society of Home Inspectors (NCC-ASHI) offers this community service once a year. Many of its professional home Inspector memebership performs the skill-based 40+ point home safety check, including furnace and water heaters for gas & exhaust (CO) leaks. 

See http://www.id-inspections.com/SeniorSafetySaturday for more details!

Based on the size and Proposed Radical Change, Health Care Reform Will Affect Us All (Individuals and Business Owners) Directly and Indirectly. 

Joining a temporary petition group to get to the bottom of the health care plan controversy and move on. If interested, please join this FB Group & share the invitation w/others.

This Face Book group is simply a Sign-Up Support Petition to respectful request President Obama debate a nominated & qualified (To Be Determined) individual on President Obama's health care plan and proposed legislation. 

You will be required to join Face Book, if not already a member.

This group is NOT intended to be a political forum.  This is Group is NOT about taking a position on the Health Care Plan or Legislative proposals.

Simply Join this Group if You'd Like to See a Formal Moderated Debate.

• President Obama has stated that he welcomes vigorous civil debate on his health care reform plan. 
• There have been many Town Hall Meetings on the health care reform plan and proposed bills.  However, discussion has not been in a formal and moderated debate. 
• Many town hall health care reform meetings have been unruly, with focus on attendee's motives and actions, distracting from the subject. 
• There has not been nor does there appear to be a better means, than a formal debate, to reasonably get into some details and issues of the highly controversial and monumental health care reform plan.

Instructions:

1. Go to www.facebook.com 
2. Register/join 
3. Search for FB Friends Request for Presidential Debate on Health Care 
4. Join the group 
5. Send invitation to everyone you know and are comfortable in inviting.  They do not need to be on Face Book initially but, will be required to join in order to join this petition.