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Is There Any Value In A Home Inspection?

Some of my clients ask the question, "Robert, should I have this house inspected prior to the purchase?" And nearly 99% of the time, I answer "yes". During the home purchasing process, the buyer is given an option to have the house inspected by a professional inspector. In most cases, the buyer is given 10 days from the signing of the purchase agreement to inspect a home. Many times the prospective buyer will forgo the inspection to save the approximately $300 fee charged by most inspectors. Moreover, the owner reserves a right to not correct the items found in an inspection, thereby making the potential buyer leery of paying the $300 fee.

There are some horror stories associated with home buyers who relinquished the right to have the inspection conducted. A couple recently purchased a house and chose not to have it professionally inspected. One week later, after moving in, they began to experience drainage problems underneath the slab. A simple inspection of the water drainage system would have revealed the problem. Fortunately, in this case, the sellers were willing to correct the problem. The repairs cost approximately $2500. A potential for a lawsuit was looming had not the sellers agreed to fix the problem. I have witnessed inspectors finding electrical problems, appliances that do not work, as well as faulty light fixtures.

In most cases, the sellers are willing to correct problems prior to the close of the sale. So, I strongly urge that the buyers have an inspection conducted, especially for older homes (those built in the early seventies). Many of these homes have drainage systems constructed with cast iron piping which could deteriorate over time. Even if the owners elect not to make the repairs, the contract allows a buyer to opt out of the purchase of the house. Remember $300 dollars is a small price to pay to avoid the pitfalls of later discovering hidden defects.

Posted by Robert Snowden Zachary Realtor Ken Doss Realty on 08/16/2009 05:06 PM

Comments (50)

Home Inspections,Home Inspection Issues in the Home Buying Channel

home inspections, real estate, home inspection issues

This post has been included in Louisiana Information East Baton Rouge Parish, LA Information Zachary, LA Information

50 Comments on Is There Any Value In A Home Inspection?

AUG

Robert...

The few times I've bought homes without having an inspection done, I've regretted it. I really should listen to my own advice :)

TLW...ROAR!

TLW,

Thanks for responding. Sometimes its a hard sell to our clients too.

I've purchased homes without a home inspection, but I know what I'm doing. The average consumer does not.

In Virginia, one of my area, we are a caveat emptor state. A buyer who declined a home inspection wouldn't get very far in court seeking damaes. The judge just tells them, "Sorry, you had your chance. The seller is not obligated to tell you anything.".

Maryland is more buyer friendly, but a buyer still will have a hard time proving damages if they didn't at least look for defects prior to purchasing. If defects are found in the home inspection, they can void the contract. TOTOH, if the seller provided a PROPERTY CONDITION DISCLOSURE and didn't disclose some defects and they are found in the home inspection, the seller will 99% of the time make repairs.

Lenn,

In the State of Louisiana, the seller is required to complete a Property Disclosure form. In this case one was completed, but the drainage problems were not disclosed by the seller. That's why, even with a completed Disclosure I urge my clients have the inspection done. You are correct, the seller will make the repairs in such instances.

My last home inspection had the inspector crawl into the crawlspace -- which I would never want to do, or have my clients do either -- and there was a high water table, which had pooled in the SE corner of the property. Who would have detected that without the damage to the property? YEAH -- a home inspection is WORTH IT!!

Home inspectors crawl under the house, get into the attic, on the roof, check out the plumbing, heating, air conditioning, appliances that are part of the purchase etc. I cannot imagine buying a house without a home inspection but then again I'm married to a home inspector :)

Definitely worth it! Even if the inspector finds no defects, it is still a good learning experience for the buyers.

No question - inspections are worth the time and money. I was shocked when a friend of mine (who is a Realtor) bought a very expensive property with NO inspection! Practice what you preach, dude.

I strongly encourage buyers to have one and I've never had one refuse thus far.

Robert, I am a big believer in getting a home inspection on all purchases, even on new construction - especailly on new construction.

Robert, under what conditions would you not recommenda home inspection (you say 1% of the time)? I would ALWAYS recommend it, for for nothing less than protecting myself. I've had flippers pass on home inspections and try to make me feel guilty for (specific example) a broken sewerline later.

Having a Home Inspection completed by a Buyer is a better placed for both Seller and Listing Agent to be liability wise !!!

Similar case could be made for physical examinations just like home inspections. You may feel OK, you may even look OK, but every now and then you need to have an expert check the key components. I explain to buyers from day one, you need to plan to have the home you agree to buy inspected by a licensed inspector. So far, all have seen the need. Good point from Phil. What is the 1% where its not recommended?

And right-on, Marie! I learned this personally. I bought a new home (I watched it being built and was very involved) and passed on an inspection.

In Oregon, we have a State requiring 1 year warranty to be given by ALL home builders, and just prior to that anniversary I had an inspection.

SHITE!!! :) They found all sorts of problems in areas that are not easily viewed....

Crawlspace had LOTS of standing water (in our dry season) as the drainage there was plugged.
A few cement tiles were missing from the roof
Some venting was improperly installed on the roof (overlapping the tiles and not sealed)
There was all sorts of stuff under the house!
There were many construction remnants in the HVAC venting (2x4 pieces, carpet, nails, sawdust, etc.)

That $400 home inspection saved my bacon on getting all those repairs done by the builder. Especially the standing water. Remedying that alone took 2 men a week to hand dig and install new drainage and a sump-pump in the crawlspace. I'm certain it would have cost me many thousands of $$$$ !!!

Robert - In my opinion inspections are so important and I recommend them 100% of the time.

I always recommend that the buyer get a home inspection, even on new construction. I have never purchased a home without an inspection. I don't want to be sued by anyone for not doing my job properly. My job includes explaining why a home inspection is a necessity.

Robert, I agree, I recommend an inspection to all buyers. And the buyers should attend as well.

I recommend an inspection to all buyers but I wouldn't recommend it to a seller. Because as a buyer I wouldn't trust a sellers inspection.

I answer that question the same way. YES YES YES, an inpsection is a wise investment. You never know what a home inspection will find. On the flip side, if it doesnt reveal anything major, then worries can be rest assured of the purchase.

Yes...always tell them to get an inspection done. It will definately save them some money..and if nothing else, especially with foreclosures..let them know what they can expect when the move in, or start repairs!

Greg,

Thanks for responding.

Robert

Maria,

Thanks for commenting.

Robert

No home inspectors weighing in yet, huh? Well I used to be a home inspector. I have to comment on Russ Ravary's comment (#18). Having the Seller get an inspection is not for the benefit of the Buyer. It is for the benefit of the Seller. By having a pre-listing inspection done, the Seller now can make better disclosures because s/he knows more about the house's problems, or s/he can get three estimates for repairs and provide them to the buyer along with the disclosures, or s/he can actually have problems repaired and provide the receipts to the Buyer.

In my mind, a Seller or the Seller's Realtor who springs for a pre-listing inspection, which often are less expensive than a Buyer's inspection, shows that the Seller wants to be as helpful as possible in providing a good property for sale. NAR regularly reports that homes that have pre-lising inspections on them sell for more money, more rapidly, and with fewer problems during escrow. What Realtor would not want that? As one judge said in a court case here, "You, Mr. Listing Agent, stood to make $15,000 commission on the sale of the property. You should have spend $300 to find out what you were trying to sell." I think he had a good point, especially since he ruled against the listing agent.

Robert I strongly urge all home buyers to have a home inspection. Like you say it is a small price to pay to find out later that you have a major problem.

Jim, I'd love to know the details of that case. I'd bet even money that since the listing agent lost, there was a lot more going on other than him/her not paying for an inspection.

I do like it when the seller already has a recent inspection report for review, but, frankly, I'd still recommend to my buyer's to have the home inspected by another inspector. All inspections have caveats, plus I've often seen two inspectors come up with different views on necessary repairs.

Hey, Phil - As I remember it, and as the judge slyly noted, both the Seller and the Realtor pleaded ignorant, but ignorance is no excuse when there are big bucks involved and when one can educate oneself for a mere $300 in order to make a commission of $14,700 instead of a commission of $15,000 that is offset by an equivalent amount -- or more -- spent on the lawsuit.

I've purchased a few REO properties without a whole-home inspection (I always get a termite inspection), but would never recommend this approach to any client. Even if no major issues are found, the piece of mind is worth a few hundred bucks.

I do some pre-listing inspections---not enough in my opinion. They are never cheaper though than a buyer's inspection---in fact they are typically slightly more. I like to think I am incredibly detailed and thorough on any inspection. On a pre-listing inspection my liability goes WAY up in terms of the possibility of something being found by subsequent inspectors. I am going to make damn sure that is not going to happen. That said the pre-listing inspection should NEVER be a substitute for a full inspection by an inspector of the buyer's choosing. If the purpose of inspections is to obtain information all parties should see all inspections as just a means of obtaining information and no one inspection should ever be seen as absolute. If that kind of inspection is desired I would need to be there two or three times as long and be able to charge $2-3000 instead of $450.00. I don't know how it got started that a home inspection is supposed to catch ALL issues. It is not going to happen. A good inspector will catch all of the "significant" issues---but they will not identify ALL issues. Multiple inspections will just give all parties a better picture----but most likely still not the whole picture.

Inspections are so inexpensive compared to the price of the property that it doesn't make sense not to get one.

I recommend EVERY buyer to get a home inspection. If someone were to say a home inspection was not needed and then the buyer sound massive damage... Hmmm... I would not want to be the Realtor that said a home is spection was not needed. So.. Always recommend a home inspection.. this is great advise

AUG

We encourage every buyer to have a home inspection. We also suggest the seller, during our listing presentation, have a pre-listing inspection done. Often times, the buyer feels more comfortable and willing to put an offer in knowing the home is in good repair.

I have a waiver form for the hard headed know it all buyer. I advise 100% of my clients that this is a area you don't want to skip.

You state the obvious. Even with new houses we recommend inspections. In as is short sales and REO's we still subject to inspection. I also like to keep from getting sued, so if they are that stupid to not get an inspection, I get them to sign a waiver saying I strongly recommended it.

Hi Jim.

Au contraire....The seller's ignorance IS the one and only excuse for not disclosing (unknown) flaws in the condition of a home being sold. That is why our contracts put the onus on the BUYER, not the seller, to have the property inspected by any reasonable means they deem necessary and satisfy themselves as to the condition of the property.

The court case you mention sounds more like the seller and their listing agent KNEW there was a flaw in the condition of the property, but did not disclose it. Either that or something much more than you are remembering. IMHO.

I always recommend an inspection be done. It is a small price to pay and can save lots of heartache. Excellent post.

Robert... I agree with you totally. I always strongly suggest that my buyers have an inspection done, whether or not the seller is providing a warranty. I believe it's the very best $250-$300 they can ever spend, especially if they use a good inspector. I'll continue to recommend it, even though I have had inspections - and inspectors - who killed deals for me.

Robert,

The cost of a home inspection is money well spent. For older homes it's pretty much a must, but many new home buyers do it, too.

You hear horror stories of those people trying to save a few bucks, no doubt, money well spent!

I personally bought my house without an inspection, but don't counsel buyers to do the same. I knew the risk and was willing to take it.

AUG

Erica: I have one client/investor and he has the knowledge and the know how when it comes to repairing a home and what to look for. He is an exception to the rule

Sandy and EskoYes it is money well spent.

Bill and Blair: I have not had a deal killed by an inspection, but it came close. Both parties wanted the deal to badly.

Gary: Thanks for your comments

Phil: It did not go to court, but yes the sellers did know about the problem

Joe and Laura: I like the idea of getting the waiver. I will employ this method also. Thanks

Harold: In Louisiana we has a property disclosure form to be completed by the seller.

Roland: Thanks for responding. The 1 percent that I do not recommend a professional inspector is for a client who buillds and basically inspects the house himself. He could be classed as a professional inspector

Robert

Christine: Thanks for responding. They are cheap, however read Charles Buell response.

Charles: Great insight. Because what you point out concerning an inspection not being a catch all is often times how an inspection is preceived by everyone.

Carla Muss: Thanks for responding.

Judi: I know your husband has seen a lot.

Barb Szabo: Amen Barb

Jason:Thanks for responding

Chris:Great job

Marie: Thanks for responding.

Phil, Michael, Michelle, Carol Deborah, Wayne: Thank you for responding, your comments were great as with the rest. The one percent of the time that I do not recommend a professional inspection is with one of my clients who is an investor with prior building experience. He has incredible knowledge of what to look for as if he were a professional inspector. Once he inspects a house for investment purposes, he immediately knows what it is going to cost to makerepairs and still make a profit. He makes most repairs himself. Other than a person like him, I always recommend an inspection. I also like the idea of a pre-inspection, something that I have not recommended to my clients, but I will start. We complete a Property disclosure Form, based strictly on the sellers knowledge of their homes.

Robert

AUG

There is no substitute for a good professional home inspection. I am quite frankly surprised at some of the agents buying properties with out inspections. You do not learn how to inspect a home by being around home inspectors. That's like me saying I know how to buy and sell homes because I am around real estate agents.

Here in CT I feel the sellers disclosure is a formality. If someone is sued over not disclosing a defect the plaintiff will have to prove that the seller had knowledge of the deficiency. Very difficult to accomplish.

Bottom line a home inspection by a good and knowledgeable home inspector is worth every dime spent.

James , Great analogy. Let the experts do their thing. Thanks for responding. Robert

AUG

Here's a funny for you. Brand new $300,000 plus home. Cut I-Joist under whirlpool tub by Erby - The Central Kentucky Home Inspector

Who'd care to guess what happens when the hydrotherapy massage tub (a large two person tub) is filled with water and two big butts. Not to mention that the stand alone tiled shower was directly on the other side of the same I-Joist.

Then there's the I-Joist under the toilet! Of course it usually only supports one large butt at a time.

Cut I-Joist under toilet by Erby - The Central Kentucky Home Inspector

Or who would care to guess how much it costs to fix both of these issues on an engineered system!

Some builders have a quality control problem!

What kills me is the client who calls saying they think they need an inspection because, while their agent TOLD them they didn't need one, the agent then wanted them to sign a waiver saying the agent recommended the inspection. Some folks are smarter than you think!

AUG

I work with investors so on the buying side it is always as is, but we furnish one on the selling side. When I wasn't working with investors, someone has to get an inspection even if I bought it.

Erby- Thanks for sharing the pictures. One would not think that such shabby work would be done on a house.

Charles- Thanks for responding. Very good point.

OCT

Erby,

Those cut TJIs are great examples of why a new home should be inspected.

By the way, did you also report that S trap in the top photo?

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