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Why you should always hire YOUR OWN Professional Building Inspector - A Cautionary Tale

I am a Professional Home Stager and Interior Designer. One of my long term Interior Design clients recently purchased a house. He was handed a Building Inspector's report which was generated (or so the Seller said) by a previous purchaser who's escrow fell out for undisclosed reasons. My client, who normally behaves in a very intelligent manner, accepted the building inspection report given by the seller, and did not hire an Inspector to do another inspection. I don't know what his Realtor was thinking to allow him to do this without advising him of the pitfalls of this course. To make a long story short, my client has had to spend thousands (over $10,000 at this point) just to bring the plumbing, electrical & HVAC systems to a functioning and safe state. He has no recourse against the seller because he willingly accepted the inspection report. He cannot go back to the Building Inspector because he did not pay for the inspection. All the costs of repair are coming out of his pocket.

My client could have used the information provided by a competent Building Inspector, which he hired and was working in my client's best interest, to renegotiate the selling price or to force the seller to make some repairs before the close of escrow. Or knowing how many problems he would have encountered, he could have walked away from the sale. Instead, he is putting a lot of money into infrastructure that he will neither be able to see nor enjoy. Yes, his home will be in much better condition, but he thought he was getting a home in good condition to start with.

Moral of the story: Never purchase a home without hiring and paying for an inspection by a Professional Building Inspector. And Realtors, protect your clients' and your own interests by urging your client hire a Professional Building Inspector.

Moving Mountains Design is a full service Home Staging and Interior Design company, located in Pasadena, CA. We stage homes and provide interior design services in Pasadena, San Marino, Arcadia, La Canada/Flintridge and Los Angeles.

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Moving Mountains Design Home Staging

Moving Mountains Design is one of the most successful home staging companies in Los Angeles, CA.

We measure our success by the speed in which our staged homes sell, often with multiple offers above listing price. We work with home sellers, listing agents and asset managers to prepare homes for sale.

Some of our services include vacant home staging, occupied home staging, color consultations, corporate and executive relocations, move organization, redesign, and interior design. We also stage model homes, REOs,foreclosures and auction properties.

For more information about our home staging services, contact Los Angeles home stager, Michelle Minch (626)441-8975 or by email.

Click here to see our Los Angeles home staging portfolio

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Click here for more information about home staging in Los Angeles and how we can help sell your home faster and for the best price

Posted by Michelle Minch Home Staging Los Angeles & Pasadena, CA on 05/29/2007 03:48 PM

Comments (45)

Why You Need a Home Inspection in the Home Buying Channel

stage, stager, home stager, interior design, building inspector, building inspection, inspection report

Originally posted at: Los Angeles Home Staging Info: Why you should always hire YOUR OWN Professional Building Inspector - A Cautionary Tale

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45 Comments on Why you should always hire YOUR OWN Professional Building Inspector - A Cautionary Tale

MAY

2007

Yep on that Michelle. Also with new construction, hire one before the ground is broken. They will stop by weekly and monitor that all is being done correctly. One we hired found a major problem, gone unnoticed or ignored by the supervisor, that would have caused serious problems for us down the line. Its worth the money.

Terry Haugen - STAGE it RIGHT!

This is also a great selling tool that the Buyer can check back and reference to in the future.

Good info

Terry: Hiring a Professional Building Inspector is not that expensive (usually less that $500, even in Los Angeles) and can save a buyer thousands of dollars. It is money well spent. I didn't realize one could hire a Building Inspector to check the progress during new construction. What a great idea!

Nicole: My husband and I do occassionally referece our building inspection report when we embark on our too numerous home remodeling projects.

MAY

2007

Great Blog Michelle!

This is excellent advice! I've rated this a 5 given how critically important it is.

Great post!

Kathy

I find it tough going to tell my buyer clients to use a previous report as their reference. Sometimes I call the inspector (if I know them) and ask them for a conference call review of the report. Doesn't work if I don't know them, though.

Michelle, Great point to always remember.

In this situation, many would think, "This report was completed not long ago so nothing has changed, why spend money on a new one? Your client's very expensive and stressful experience is the reason why you need your own professional inspection.

Thanks, Leslie

Thank you, Lori & Kathy.

Jeff & Leslie: Unless the home buyer pays the Building Inspector for the report, then they have no recourse if the report is incorrect or omits something important. And during the time lapse when the report was done and when the home is being purchased (in this case a period of about one year) a pipe could have burst, the roof could have started leaking or the furnace could have blown a seal. The $300 or so for a building inspection is cheap insurance in my book.

Michelle,

That's a sad story----I totally agree about having a buyer use an independent inspector.

Specializing in Move Out Cleanings and property turn-overs, I encounter many things that make me cringe before the inspector arrives, especially with a property that has been a rental. The most common is severe water damage due to improper maintenance of tubs and showers and every seller with half a brain will do their level best to cover and cheaply repair the damage prior to inspection.

It is not only important to hire your own inspector but one that will dig deeply to ensure you are making an investment in a solid structure free of damage. Great job on your article!

Teresa Hall, www.TheCleaningService.net

Great information, Michelee. Another example of why it is so critical for buyers to have their own inspections and do their due diligence thoroughly. It's not worth trying to save a little time or a few hundred dollars. Thanks for this reminder.

Jeff

My husband ( a State licensed general contractor doing only roofing) has also undergone training as a Home Inspector and he cautions everyone to make sure they don't just do a visual inspection of roofs from the ground level. There are inspectors and then there are good inspectors. Make sure they are working for you & therefore liable should things not be as they have reported them. Building Inspectors here in Mn work for the city in which the building or remodeling is being done and they check code violations. Our Home Inspectors do the prepurchase inspection. Also you don't want to hire one that is working in the interest of the realtor to put the sale through.

Good blog, Michelle - you just saved someone a lot of $ down the road.

Good blog!

I just had someting like this happen with a client, who thankfully did have their own inspection... Only to find devastation by wood destroying critters, plus a gaping sewer leak and many, many issues with the electical throughout.

Yes, it cost them some cash out of hand, but it saved their bacon in the long run.

Jeff: Thanks for your response. Due diligence is very important. I wish all Realtors felt that way.

Sarah: I'm glad that things worked out for your client

Kathleen: Thank you for reiterating the point that it is important to hire an independent Home Inspector, who will work in the best interest of the home buyer, and not someone who will be less that forthright just to appease the Realtors involved.

Teresa: I'm sure you have seen some real humdingers in your line of work. As a Professional Home Stager, I am sometimes asked to mask structural damage as part of my staging services. I refuse to do so, and feel it is unethical, if it is more than something cosmetic.

So true. I just wish that in a competitive seller's market like San Francisco we wouldn't constantly have to waive the home inspection alltogether just to have a chance at getting the property.

Excellent advice! Thank you for the great post!

Michelle, you are absolutely right! I always advise my clients to get their own inspection. A couple of hundred dollars spent on the report is very worth it, considering the purchase price of hundreds of thousands of dollars.

Great post, Michelle, Congratulations on the feature!

Joelle

This is something of a surprise to me. I had a similar issue about 2 weeks ago. I had a buyers Realtor call me after 9 PM one night, who desperately wanted to buy my buyers inspection report. The whole reason my buyer pulled out was because of the inspection report!

She was fishing to save her client some money. All well and fine, my buyer sold it to her for 1/2 what he paid. But what does anybody gain. The inspection is what sunk the deal to begin with.

People try to shortcut and save a couple of hundred bucks in this biz all of the time. It is up to us to help them make wise decisions.

This is good information for all of us to have. Yikes...sorry for your client, that's a lot of money to lose.

Hi Michelle !

Thanks for the tip! It is always nice to have good tips! Thank you and keep posting.

Nalliah Thayabharan

Commercial and Residential Building Inspector

Expert Building Inspections Ltd

MAY

2007

Inspectors are an absolute must.

Carolin Benjamin
Bob and Carolin Benjamin
The Benjamin Team
Keller Williams Integrity First Realty
Gold Canyon Arizona

I am in agreement 100%. I have found that a really great inspector can identify many potentioal problems as well as the obvious ones. I also encourage the buyers to request a home warranty if the seller is not offering one. If seller is not willing to pay for the Home Warranty I encourage the buyer to purchase for their protection.

The older home we bought in 2004 has had the water heater replaced (While we were in Hilton Head SC on vacation) and just recently the Dishwasher. Both only cost me $55.00 each. Savings has more than paid for the yearly premiums.

Keep up the great posts.

I agree with your response to my earlier comment, just for the record...

My business partner and I buy flippers from time to time, when time and money permits. Even if we are buying the house "As-Is" we still insist on getting a building inspection. We want to know what we are getting into, even if we do not expect the Seller to make any repairs.

Dena: It is my understanding that if you do not buy the inspection report directly from the Home Inspector, then the Home Inspector has no obligation to you to cover damages for anything he/she misses.

Shirley: Thanks for bringing up the value of Home Warranty Insurance.

Great blog i could not agree with you more.

In my book, no transaction is complete without a home inspection.

MAY

2007

Michelle, you make an excellent and maybe not so obvious point. A buyer always wants to fund his own inspection report for all the reasons you mentioned. Thanks for bringing this to everyone's attention.

To think at one time there were no Home Inspectors, now they are essential for the primary reason you pointed out. I'm looking forward to the day when Stagers become essential.

Wow Michelle, You attracted the BIG GUNS with this blog. Congratulations first on the blog itself and secondly on being featured! Cool, cool, cool!

Just wanted to add in. It is possible that your friend may have some recourse if he can prove willful deceit on behalf of the seller. Additionally, if I were him, I'd file a complaint with the state's real estate governing body. It is his agent's/broker's responsibility to protect his interests within reasonable limits. Finally, he should contact a real estate attorney with experience in post-sale conflicts/litigation regarding his options.

Great blog! I want to add that, most home inspection reports are copyrighted, and belong to the inspector and the inspectors client only. In fact, the inspector has to get permission from the client to give a copy to the clients realtor. For a realtor to sell a report to another buyer is, at the very least, of questionable ethics, and may be contrary to some state laws. The bottom line is that an inspection is a snapshot in time. It tells the condition of the house at the time of inspection only. I believe it does a disservice to any buyer to suggest they either forego the inspection or accept one done for someone else.

JUN

2007

Michelle,

Very unfortunate how it worked out for your client. Inspections are vital, but you need to get your own. Your client learned a valuable lesson and we through your post did the same.

NOW suprises! Eventually one is goign to darken the sellers door step.

Better to be prepared then suprised. If a seller waits what they find could end a sale.

Michelle,

How unfortunate. Shortcuts are only worthwhile if they are good, and this one was not well reasoned. Great reminder to be vigilant and keep a seamless cover on one's tail end. Thanks for posting.

Paula, How funny. Now it is no longer CYA and has become KSCOOTE. Sorry Paula but I don't see that catching on, no matter how much I like it.

Yvonne: It took me a couple of minutes to figure out what the heck you were talking about. OMG, TISF. YBBF, Michelle

Tina: From your mouth (or keyboard) to God's ears!

Peter & David: I was wondering when some of you Building/Home Inspector types were going to show up. Thanks for stopping by. David: I didn't realize the reports were copyrighted. That is very good to know. And I like the line that they are "only a snapshot in time". That is a great expression.

Monique: My client brought this upon himself to a degree. He could have, but declined to hire his own Home Inspector. He chose to accept the previous inspection to save a couple of bucks. BIG mistake that he won't make again, I'm pretty sure.

The good news is that all the repairs are coming along splendidly, and in the end, I think he will be very happy with the house. It will be a far, far better house than he ever imagined when I am done with it. I will be posting photos in the future when I have some afters. The work is still in the rough in stage.

JUN

2007

This is excellent advice that I whole heartedly agree with! Thanks Lisa Stevenson

I own up to being an inspector in Texas; believe me I have seen it all. I would encourage the buyer to hire his own inspector so that they will know exactly what lies ahead and not depend on someone's report. I wonder sometimes when a buyer is buying a $200,000 home or more, and question paying a $300.00 or $400.00 inspection fee. The inspection is so important, starting from the ground up. Believe me it gets hot in July and August in the attic or on the roof or in some cases under the pier and beam. There are many items to look at and evaluate in the inspection process. In my mind, having an inspection would give you peace of mind. This goes for an existing home as well as a new home. My youngest son just had a custom home built. You would not believe the items I found that needed to be repaired and this is suppose to be one of the best builders in the area. It is easy to overlook items; therefore, an extra set of eyes are helpful.

Have a good day!

Carl Winters

Group: Hill Country Inspector

JAN

2008

Carl: I guess I missed your response when you posted it. Sorry. It is good to get the perspective of a professional - on this blog and when buying a home, new construction or previously owned. Thank you for your comments.

I am still working with this client remodeling his home, and not a week goes by that he does not recognise the mistake he made by not hiring an inspector. I think he has learned his lesson!

WOW! That is a sad and scary tail. It is incredible that a seller can get away with that kind of trickery!

KSCOOTE- I am still laughing over Yvonne's comment- However, this situation is not funny at all. I see homebuyers trying to save money by not having new construction inspected. Not a good idea!

Kathy

Jo: I can't believe my client's buyer's agent didn't push him to get an independent inspection. Shame on her!

Kathy: Even worse, this wasn't new construction. My client said that the seller seemed like such a nice guy, he didn't want to insult him by bringing in his own inspector, and he wanted to save some money. The seller, who was a nice guy, was also a DIYer, and not a very good one.

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