In random order, I present to you seven different ways in which a home inspection report can be used by parties to a real estate transaction for advantage and benefit.

1.  Buyers can consider the reported conditions of the home's systems to determine their ability to afford to maintain the property.  A home with a 12 year old water heater, an 18 year old furnace and a 25 year old composite shingled roof is going to need some costly investments in the near future.

2.  Buyers can sometimes use information regarding undisclosed defects to negotiate the seller's action to repair the defect(s) or adjust the asking price for the home.

3.  Sellers can obtain a home inspection and use the report to disclose known defects to potential buyers.

4.  Sellers can obtain a home inspection and use the report to identify and correct significant defects that could interfere with a buyer's desire to submit a contract to buy the property.

5.  Buyers can use the inspection report as a "punch list" or "to do list" for maintaining the property after purchase.

6.  Buyers/Sellers can use the report to communicate to contractors the nature of the defect(s) to obtain estimates for repair or to arrange for repairs or replacements.

7.  Buyers can sometimes use the inspection report as a means to withdraw from the contracted agreement to purchase the home when certain types of undisclosed defects are reported.

Buyers and sellers should consider obtaining inspection reports only from professional full-time home inspectors.  Inspection reports generated by builders or contractors are often used by them as marketing tools and a means to generate business for maintenance and repairs and do not always represent the actual conditions of the property.

 

 

James H. Bushart, CMI

Visit my Website

 
This post has been included in Missouri Information Barry County, MO Information Cassville, MO Information
Post is included in group: Home Inspector's Corner
Post is included in group: LA Connection
Post is included in group: Commercial Real Estate

51 Comments on Seven Ways to Use a Home Inspection Report

OCT
31

Home inspectors in Missouri are unique from those in many states in that, while we enjoy a wonderful relationship with the general public and are providing unprecedented satisfaction levels for the services we perform, we remain unregulated and free from control by special interest groups through their lobbying of various government entities. The "dumbing down" of our profession through state licensing/registration criteria - while often attempted - has yet to happen here, and to turn our profession into just another commodity. We are working very hard to keep it that way.

 

Does that mean you have no state licensing?  What level is it at then?

10:56pm • #1

We have no state licensing of home inspectors.

I'm sure that you would agree that a state that has no minimum basic standards for constructing a home and who does not license builders, general contractors, electricians, plumbers, or hvac technicians --- would be wasting its time trying to license home inspectors.  There would be no consumer benefit at all.

In addition to the illogical consideration of licensing the inspector INSTEAD of the builder and contractor is the lack of a demonstrated need.  The total number of complaints that have been compiled in the entire State of Missouri by the Better Business Bureau and the Consumer Complaint Division of the Missouri Attorney General for the last five years is five complaints against home inspectors (compared to several thousands of complaints filed against unlicensed contractors).

While home inspectors in Missouri do not oppose licensing strictly to oppose licensing, we would first expect to see our state establish a basic minimum standard or code by which builders and contractors would work by...and for inspectors to inspect that work in accordance with the same standard.  Secondly, we would like to see a demonstrated need.

11:10pm • #2
NOV
01
Localism Sponsor Outside Blog

I think your blog is a well written blog.  I am in the state of Virginia and our home inspectors are not regulated.  I see many poor home inspections.  I think that regulation is needed as to a minimum standard of competency.  Many inspectors in my area do not try to find a lot so as to not upset the deal.  This is not what they are hired for.

12:48am • #3
428,556 Points 81 Featured Posts Localism Sponsor Outside Blog Hit Router

A good home inspector is a vital member of an agent's support team.  I hope you post these suggestions to the Rooke Realtor Group to share them with newer agents and maybe some of the company groups in your area for some self-promotion (such as RE/MAX Activerain Bloggers and/or the Keller Williams 'Rainers)

4:54am • #4

The home inspection is a bit controversial in my mind.  It is still basically an unregulated business.  There is an association and and education program but still not a mandatory situation.

5:28am • #5

Home inspecting is controversial, in my opinion, because it requires a combination of high levels of skill in two very different areas.

First, one must be totally educated regarding a home and its systems in order to be able to determine when a material defect actually exists.  Second, we must be skilled in communicating (verbally and in writing) the practical implications of these defects.

IMO, none of us ever reach the level where we cannot improve in some regard in one or both of these areas.

7:19am • #6
Outside Blog

Thanks for the great blog. I'm learning more about how valuable home inspections can be.

8:43am • #7
136,780 Points 12 Featured Posts Outside Blog

Even though I am "only" a professional home stager, I always recommend home sellers get a building inspection before they put their home on the market in order to be made aware of condition issues that can be fixed before the house is listed. Some choose to do the work to get the home in top condition and others used the report as a way to disclose defects. Either way, all parties have a lot more information after getting the report than before.

In addition, home buyers should always get their own home inspection done. I have an interior design client that relied on the home inspection report provided by the seller. He has now spent almost $80,000 replacing the plumbing, electrical and putting on a new roof. He didn't realize the sellers report was 5 years old. If he had hired his own inspector, he could have used that information when negotiating the price or may have chosen to walk away. Either way, he would have been armed with important information.

8:49am • #8

Well said Jim. You phrased the uses for a home inspection very well.

I am a licensed, professional home inspector in north Texas. It is hard to imagine that other states do not regulate the home inspection trade as was stated by several of the comments. 

While I am normally against government involvement in most things, I do find that some regulation of industries like real estate and home inspection is useful. In Texas, the qualifications and required training help make home inspection a true profession by keeping out those who would take advantage of an unregulated market.

Personally, it was a challenge to obtain the education/training (expensive) and then pass a state licensing exam (tough) even with my experience as the owner of a construction company (past).

I look forward to hearing more from you on ActiveRain and more about home inspections in other states.

David Selman
Selman Home Inspections

 

9:18am • #9

I recently sent a letter to my State Representative as follows. As a graduate engineer with 20 years experience as a construction engineer/manager and a home inspector for most of the last decade I am embarrassed by some of the inspections and inspection reports I see.

 

Dear Rep. Murdock,

In your capacity on the Consumer Protection Committee I would like to see you address the lack of any regulation of home inspectors in our state.

 

Minnesota now stands in an ever shrinking group of states with no oversight over those who choose to present themselves as "Home Inspectors." This is more than a little surprising since Minnesota is usually considered one of the leading states in protecting the interests of all its citizens.

 

The essential elements of inspector regulation would appear to be;

Determining a baseline of competence by requiring a certifying examination to practice the profession,

Requiring some level of Errors and Omissions Insurance to help provide some protection for all parties involved,

and Regularly verifying to the state that these requirements were met.

 

Some states have created their own examinations to help determine competency, although most seem to accept one or more of the major certifying agencies examinations. Membership in the certifying agencies would be an ongoing requirement as most mandate continuing professional education.

Errors and Omissions Insurance is always required although the level varies state to state. ND requires only $100,000 which appears to be minimal in today's economy. More typically it seems that $300,000 to $1,000,000 is required.

This insurance is not inexpensive, starting at about $2,000 per year, not including General Liability and bonding, and is often put forth as a reason to not regulate home inspectors since it might put some out of business. This argument is similar to saying we should not require drivers to be insured since some might not be able to afford to drive. Society has determined that this is a reasonable requirement in light of the damages that can occur to innocents.

An annual affirmation that the requirements are met is, I believe, always a requirement. This allows the industry to fund, or offset, the enforcement of the regulations and helps assure that those in the industry are committed to serving that industry.

The purchase of a home is most often the largest investment a family ever makes. The state licenses or regulates almost all those involved in these transactions except those who might advise the purchasers on the physical soundness of the collateral. This does not appear reasonable.

I would really appreciate anything you might be able to do to bring this vital issue to the attention of your committee and the legislature as a whole would be appreciated and to the benefit of all Minnesota home buyers. I would be glad to have an opportunity to discuss this with you.

Thanks for your time and consideration,

Marshall Brown
9:19am • #10
Outside Blog

In my area of California (San Francisco Peninsula) most sellers have a home inspection done and provide it to potential buyers before offers are received. It is, indeed, most helpful.

I suggest that my buyers either: 1) have their own additional inspection done,  to have two professionals evaluate the home and the opportunity to "shadow" the inspector, or 2) hire the original inspector to do an in-person walk-through with them to explain everything in his/her report.

The home inspector is an important team member here.

9:21am • #11
1 Featured Post

Fascinating as I've always assumed a degree of competence and now realize how sketchy the skills are. There is a national association for home inspectors and I wonder what standards they hold their members to.

9:27am • #12

Jim these are great uses of a home inspection report.  I am a licensed home builder and will be a licensed home inspector(when the state has them).  In our state (FL) a contractors licesense is difficult to obtain and one must show knowledge of construction techniques.  This experience is helpful in the home inspection business, I would not say it qualifies one to be a home inspector though.  I would recommend that a home inspector's experience and licenseing be a determining factor.  A contractor may be used but should not be soliciting for work.  I recommend a home inspector be a member of the International Association of Certifed Home Inspectors (interNACHI).

9:29am • #13
194,423 Points 1 Featured Post Localism Sponsor Outside Blog Hit Router

Good basic points, nice list.  I re-posted it as I think it will have value for my readers on the outside blog.

9:55am • #14
141,177 Points

Jim:  Great post ... thanks! Home inspections are a must when I represent a Buyer. I tell them upfront they need to get one ... and if they don't they will sign a waiver acknowledging they we well informed and understand the risk of not getting one.  For Sellers, the same thing applies. I make my listings contingent upon the seller agreeing to get a least a termite inspection.  Inspections are only as good as the inspector which is why it is critical to use a good great one.

9:56am • #15
101,594 Points Outside Blog

Sellers can  also use the report as a PRE EXAM to do the punchlist to get top dollar on their homes...i.e. win the beauty contest.

9:57am • #16
243,437 Points 8 Featured Posts Localism Sponsor Outside Blog

Jim,

This is a good report worth repeating and using a s a useful tool for first time home buyers, which dominate our local market.

The down side...if there is such a thing is if the buyer pulls out, we are not suppose to make that report available to the next buyer.  I understand everyone wants the work, but a report should then become part of the known disclosures for a property.

The other down dis, it there is a defect pointed out to the buyer the buyer cannot technically file a claim with a home warranty company.  If the furnace is not working now - why should the home warranty company replace it?  I know it happens, but would that not be considered mortgage fraud?

I'm, going to go ahead and re-post this for my readers with my comments as an introduction - I would certainly appreciate your response back on my blog.

John

10:02am • #17

Thanks for sharing this.  Home inspections are one of my favorite aspects of real estate.  I learn something new every home inspection that I attend.

10:13am • #18

I don't agree that Home Inspectors should be required to carry E&O Insurance. This type of insurance is strictly for the protection of the Inspector. It should be up to the Inspector if he/she wants this type of coverage. The belief that this type of insurance is cheap guess again. It depends on many factors including location of the business to what the premium will be assessed for the specific policy. Liability Insurance should be mandatory because that does provide some protection for the client in case the Inspector damages their property during the inspection. For licensing Home Inspectors does not make any one Inspector a good Inspector it just shows that he can pass an examination. Licensing is definitely a great idea so the industry can be regulated and keep the not so ethical individuals at arms length. As in any industry where there are inspectors there are good, bad and middle of the road inspectors and hopefully the bad ones will disappear after a while leaving good and great inspectors.

Home Inspections should be mandatory by lending institutions and not the government or at least give the buyer incentives to have the Home Inspected. 

Robert Bockus (Tristar Consultants)
10:26am • #19
201,278 Points 1 Featured Post

Jim,

 

Very good summary. I like the use of the report from a disclosure perspective. Oftentimes, even some difficult issues, seem a little less significant when they appear in a professional report.

Brian

11:48am • #20

Hi Jim.....These are some excellent points. Thank you for sharing.

 

Jerry Gray CRB,CRS,GRI / Prudential Carolinas Realty / Winston Salem, NC

Jerry Gray
12:12pm • #21
213,674 Points 6 Featured Posts Localism Sponsor

Jim, this is an excellent common sense post and a helpful checklist for buyers and their agents in the middle of a home purchase.

1:53pm • #22

Great list.

Home Inspections are definitely a value added...
but they would be more valuable if the field was regulated.

2:15pm • #23
189,639 Points 1 Featured Post

Good list ....thank you!  I've bookmarked it for future reference

Patricia

3:09pm • #24

Hello Jim,

Great post, but it baffles me your state is trying to License Home Inspectors when in fact there are basically no Licensed Contractors in your state.

Who could possibly come up with the intention Home Inspection should be regulated, when the folks tossing up the homes have no basic standard to build, nor a City Code Official to determine whether a builder has even met a national recognized standard while constructing a home. Does the state of Missouri basically just think (believe) all homes are built to a national standard and the builders-contractors actually abide by these national (minimal) standards? If so, they are living in the boarding state "The Land of OZ"

I would certainly think if anyone should have basic minimal standards to abide by, it would be the folks building the homes. If your inspecting a home, what standard would you be basing your opinion on when in fact the Builders are not regulated to even build a home to the minimal national standards if nobody is watching?

The Seven ways to use an Inspection Report are right on the money though, maybe you can come up with Seven ways a Builder could construct a home so it's not built like a disposable commodity.

 

Dale Duffy

Scottsdale, Arizona

Dale Duffy
3:14pm • #25

Dale,

You have asked some very good questions.

At various times, state legislators have proposed and presented bills that would institute statewide building codes and statewide licensure of builders and their contractors but heavily funded lobbyists have worked to kill these measures.

Large metropolitan areas with the tax base to support the enforcement of them have implemented building codes and I am afraid that very few of our neighbors from Kansas City or St. Louis who visit us in the Ozarks are aware that the motels and cabins they rent have been amateurishly wired without ever having been inspected.  In areas of Missouri without building codes, electrical fires destroy families, lives and property on a monthly basis.  Most recently, nearby Anderson, MO, had an electrical fire that killed 10 residents in a nursing home.

Still, we have no codes or enforcement and many times the very first time that anyone has ever inspected a home in any of these areas is a home inspector for a real estate transaction.

Many agree with your point as to how nonsensical it seems to allow private residential and commercial structures to be built and maintained with no minimum basic standards by unregulated/unlicensed builders and contractors while suggesting that, somehow, the inspector who comes along much later should somehow be licensed instead.  That is why we remain unregulated and will remain so, in my opinion, until the state establishes a minimum basic standard by which one would inspect...as well as build.

Until such time as that, and there has been set forth a demonstrated need, there is little credibility to be found in the efforts to license home inspectors in Missouri.

But with all that said, licensing is not the topic here so I will save my rhetoric for another thread.

 

3:29pm • #26

Mr. Bushart is correct in his suggestions as to what a home inspection can be used for. His last comment, however, is probably the most significant. Often, contractors and builders either soft-sell the defect discovered, or hard-sell it as something that requires immediate repair, or else. Ofteh "code" related problems are discovered, which may or may not be entirely truthful. The best is where the inspector/contractor quotes a price for repairs that no other contractor can touch.   In the end, i\ts important to hire qualified and experienced inspectors who stand to make nothing when it comes to repairing the subject property.

4:56pm • #27

Great post and lots of helpful information.

5:00pm • #28
Outside Blog

Jim,

When representing the seller and the buyer gets that inspection, I forget to breathe. We all know those reports can be deal breakers. The trick for me is to advise the seller what the options are when he chooses not to get an inspection in the first place.

When representing the buyer I urge an inspection. Again, it can be a deal breaker, but I would not be working in my client's best interest to advise otherwise. I simply ask my buyer to know some of the items on the report may not be in need of immediate repair but simply help in budgeting for future maintenance. I always use inspectors that I trust to find all the issues possible then deal with what is reported to the best interest of my clients.

You guys are scary. You guys are oh so necessary. We love you in a wierd sort of way.

5:39pm • #29

Linda,

Believe me when I tell you that we take our responsibilities to all parties to the sale very, very seriously.

I learned from the pros to have my client present during the inspection for a variety of reasons. 

First, I want him to understand what an inspection is and what it isn't.  He needs to understand before I begin that I am not warrantying the home from future problems, that the seller does not have to repair or replace every item I identify to be defective, and that every defect is not a reason to reconsider price or purchase.  I don't turn on my flashlight until we all agree to these points.

Second, by having him present during the inspection he has an opportunity to ask me as many questions as he feels is necessary regarding the defects that I uncover.  We don't go home until his questions regarding the defects are answered...at least to the extent that they can be at the stage of discovery.  He is not left to his imagination or his own devices.

When we do this, the report contains nothing to shock or surprise anyone who was present during the inspection.  Decisions are made on rational responses to information instead of reactions to misinterpreted words or pictures.

 

 

 

 

6:00pm • #30
Outside Blog Hit Router

Good points! Oftentimes the home inspection is not available until well in to the escrow!

6:19pm • #31

I have used the inspection to get a contract price reduction...

7:03pm • #32
104,736 Points 1 Featured Post

Those are good points Jim. Inspectors are now licensed in Oregon and providing much better reports.

7:10pm • #33
146,625 Points 4 Featured Posts

One way to not use it is to contradict it. Unless you are an "expert" in the contracting or inspecting field, you are treading on very thin ice if you tell a customer to disregard what a report says or in anyway try to change its meaning. If the inspector has made an error, then he can take the heat. If start interpreting, then you are willingly putting your head in a noose and one day someone will kick the chair out from under you. Let the report and the inspectors speak for themselves.

9:38pm • #35
NOV
02

My biggest issue with home inspectors is there are a lot of them and unless you get a personal referral, you really have no idea if that person knows what he/she is doing.

My other issue are the inspectors that seem to go way out of their scope of abilities and ends up doing more harm than good, assuming that was his/her intention.

What is the best way to handle an inspector that has done something completely outside the box that in turn upsets or worries a buyer? Does each state have their own guidelines on what should be inspected and what constitutes a valid repair.

Here's one example I see a lot:  heat and air system work normally, inside filters are all clean, exterior condenser unit has obvious signs of dirt/debris, etc on the coils.  Inspector calls for a whole system service.

Again, this is just one example of many that occur all the time.  I've only seen a few inspectors (I can count them on one hand) that actually do their job and do it well.  You are a very important part of the process and I am looking forward to your reply.

12:18am • #36

Very good points, Russell.

First, as to your general question "What is the best way to handle and inspector that has done something completely outside the box that in turn upsets or worries a buyer?", I have a couple of responses. 

In preparation for the inspection, a professional home inspector will ensure that the buyer understands what his inspection will entail, that the inspection is not a warranty of reported items, that the seller does not have to repair or replace any or all of the defects that are found, and that not everything found is a reason to reconsider price or purchase.

Not all states...even licensed states...have standards of practice.  All national home inspection associations do. 

If your inspector is a member of a national association, his standard of practice (what his inspection entails...and what it does not) is published and is a matter for record.  His contract with the client will (or should) state what standard of practice he is inspecting under. 

So...prior to beginning the inspection...the inspector and his client have pre-established what is and what is not "outside of the box".  What he will cover during his inspection has been made a part of his contractual agreement with the buyer.

What is in the box and what is not has been defined, at this point.  He will be providing his professional opinion as to the condition of those systems that are covered under the agreed upon standard of practice.

Now, if the result of that inspection "upsets or worries the buyer" this is not within his control.  He must report what he finds and can get himself in a lot of trouble if he intentionally conceals or understates the conditions that he observes.  Unfortunately for both of us, some less than professional inspectors will actually do this out of fear of losing future referrals from a realtor which puts himself and the realtor who referred him at risk.  No one is served by such an inspection...the buyer, the realtor or the inspector.

Professional inspectors will take the time during the inspection, when the buyer is present (which should be all the time, if possible) to fully explain what they see and answer every question that the client may have regarding it.  This will usually keep buyers from jumping to conclusions or becoming overly upset and fearful regarding minor issues.

As to the specific incident that you cited regarding the HVAC unit, I would have to know the age and type of system that you are referring to in order to answer your specific question.  Older heating systems that are gas operated will condition heated air by warming it in a heat exchanger that (after many seasons of expanding and contracting) can form cracks that could distribute carbon monoxide throughout the home.  When these furnaces begin to reach their maximum points of useful life, prudent inspectors will recommend (not demand!) that the systems be checked annually to ensure its safety as well as working condition.  If carbon monoxide detectors are not already in place, they will be urged as well.

I do not know if these were the conditions at the home you were selling, but these are the circumstances where most inspectors will recommend a "whole system" type service without finding any specific defect.

I apologize for this lengthy response.  I'll summarize it by saying that your inspector's inspections should be governed by a standard of practice that the buyer (and his agent) should have access to and understand what is and what is not "outside of the box".  Inspectors are required to provide factual, unbiased and complete descriptions of what they observe under that standard of practice.

7:16am • #37

I have heard many sides to the home inspection issue.  Some say the disclosure alerts the buyer as to the age of the mechanicals, roof, windows, etc.  They say since they have that information, those buyers should not request any credits and/or reductions from the sellers.

On the other hand, I believe the home inspection can be the "wake up" buyers often need to realize they are "actually" going to buy this house with these "imperfections" and that they had better come to terms with this and act accordingly. 

Sellers that just indicate "unknown" as to the age of house particulars are not helping their situation and should not be outraged when buyers come back requesting much needed repairs.

Rita Zarcone
7:32am • #38

Russel

First of all you have to realize that home inspectors, just as realtors, have to do things for CYA.  If we don't recommend that many things be done, then the client comes back to us later and complains that we should have mentioned this or that. 

For example, if I inspect a home that is 15 years old and it has smoke detectors in the hallways, it met the requirements when it was built.  It would not meet the requirements now because that home would also have to have smoke detectors in each bedroom.  Does that mean that I do not mention anything?  No.  I mention that it met the requirements at the time of construction but that it does not meet current requirements.  I also recommend that the client consider adding  smoke detectors to the bedrooms for additional safety.  I also mention that most manufacturers recommend that smoke detectors more than 10 years old should be replaced to ensure proper resonse in an emergency. 

My job as an inspector is to educate the buyer about the home and making recommendations is part of that.

As to your comment about the air conditioner, you have to keep in mind that the testing done by a home inspector (who is a generalist and not a specialist) on an air conditioner is very basic.  I can tell that the fan is working, that the unit turns on and off and that the temperatures are within the basic limits.  There is a lot more to an air conditioner than that.  A good service tech can tell them a lot more.  The air conditioner is the largest part of an electric bill (at least here in Florida) and even minor deficiencies in it will make a big difference.  I routinely recommend that the client consider having an annual service perfomed by a qualified HVAC contractor to ensure that the unit is operating to it's best efficiency.  Also if it has a gas furnace, I recommend having the heat exchanger inspected for safety.

In my opinion, doing anything less would be a disservice to my (and your) client.

Robert Sole

REM Inspections LLC

www.reminspections.com

www.OrlandoHomeInspector.net

 

12:13pm • #39
5 Featured Posts

This is why I only recommend inspectors that are ASHI members.  The quality of the inspector and their inspection is so far superior to other "independent" firms.  This is because home inspection services are a largely un-regulated industry in our state.  ASHI members adhere to a standard of care that will allow buyers and sellers, alike to rely on the inspection report.

I have a point 8 for your list - sellers can use a home inspection report to remedy problems before the house is put on the market to improve saleability.

1:13pm • #40

I would not limit myself to inspectors from any one organization.  Each has good and bad inspectors.  If you have had good experiences with ASHI inspectors, then by all means continue.   If you give them a chance you will find that there are just as good of inspectors at the other organizations.  I myself am not and will not become a member of ASHI (I don't want to start a ****ing match so I will not go into the reasons), but I will hold myself up to meet or exceed the standards that the better of them work by.  The important thing is to check out the credentials of the inspector.  the fact is that you can become a member of any of the organizations with very little experience or knowledge.  The same goes for being licensed (in states that require it).  A few classes and the ability to pass the test is all that is required.  It doesn't mean that the inspector can do a good job.

In my case, I list most of my credentials on my web site and when possible, have links where potential customers can verify them.  Think twice when you go to the inspector's web site and they only mention that they belong to an inspector's organization and that they have been in business for x number of years.  In most cases, that does not give them the practical knowledge to do a good job for you.

Robert Sole

REM Inspections LLC

www.reminspections.com

www.OrlandoHomeInspector.net

3:11pm • #41

 

Thank you for your contributions, gentlemen, but this is not another of many unendable arguments over who runs the best home inspection association.

All national home inspection associations require that their members adhere to a standard of practice, a code of ethics and require continuing education.  For those reasons, in the absence of personal referral or observation, the odds of a better report are increased when hiring a member of such associations than one who adheres to no other standards but his own.

As to which of these associations have the best inspectors...the argument is moot in that most of the inspectors who belong to any one of them usually belongs to several of them. 

Since there is no end to the debate as to which national association attracts the best inspector, I will end it here by promising to delete any additional off-topic posts that refer to it.  This thread is "7 Ways to Use a Home Inspection Report".  Thanks.

3:23pm • #42

Great post Jim. I have used the inspection report to obtain a credit for my buyers for repairs and to reduce the price of the home.  It's also a great vehicle to confirm the information provided by the seller about their home. 

On a recent inspection a buyer client of mine discovered that the home he was buying was not connected to municipal sewers as indicated in the listing but rather was a septic system.  The seller had no idea and had not maintained it for the 5-7 years that they lived in the home. They agreed to have it cleaned, tested and repaired before title transfer at their expense.  That ispection saved my client  considerable expense and aggravation.

7:51pm • #43
NOV
03
Outside Blog

I have used inspection reports for all 7 of these purposes.  Thanks for the list and the reminders.

12:46am • #44

This is a great reminder of the many uses of the home inspection report - one of the most important tools we can provide our buyers and sellers!  Thanks for sharing!

10:27am • #45
NOV
04
1 Featured Post Outside Blog Hit Router

Great post Jim. I don't know how a Buyer would ever skip an inspection report. It provides so much necessary info for us.

12:50am • #46
NOV
05
201,108 Points 2 Featured Posts Outside Blog

I totally winced over the part where the buyer can use the report to adjust the price for seller repairs.  That always turns into a nickel and dime negotiation for things the seller should have repaired or maintained.  Becomes subjective and causes problems I've always found.

6:06pm • #47

I am not a realtor so forgive me for venturing into an area where I have no first hand knowledge - but - I think that if I were representing a seller, I would let him know at the time he was completing his disclosure form that any items that he fails to list that are subsequently revealed by a home inspector could result in the buyer's decision to exercise his right to renegotiate his contract - to include the purchase price.  Then when it happens, I would remind him of our previous conversation as we discussed the buyer's offer. 

I have always found over the years that the majority of sellers are very honest and well intentioned people and will be genuinely surprised over discovering issues that exist in an attic where they never ventured, or a nook/cranny of a crawlspace that reveals something bad.  But then, in rare cases, there is the seller who thinks they can hide the stains from a roof leak with a gallon of Kilz...and forgets to paint the nearby stained closet ceiling that gives it away.  In both cases, both sellers should understand that the offer made on the home was made in good faith based upon the information that the seller, himself, provided.  When that information proves to be incorrect, it is grossly unfair for them to ask a price that does not take these defects into account in any way.  Would you agree?

Again, buyers must be prepared by their inspectors (so as to better understand the scope of the inspection) that a seller does not have to repair defects or adjust the selling price...but sellers need to be prepared to expect that their undisclosed defects could affect the outcome when their house comes under contract.  Preparing them for that as they prepare the disclosure, IMO, would be the best time to do it.

6:28pm • #48

Jim, very well written article. It easily communicates the importance of a home inspection by a qualified Inspector as well as the different ways that an inspection report can be utilized.

Good Job!!

I am a firm believer in pre-sale inspections. If more Listing Agents would advise their clients to get them, more times than not, they would prevent themselves and their clients from unpleasant surprises that are so often revealed.

3.  Sellers can obtain a home inspection and use the report to disclose known defects to potential buyers.

4.  Sellers can obtain a home inspection and use the report to identify and correct significant defects that could interfere with a buyer's desire to submit a contract to buy the property.

Kevin M. Leonard - The Home Inspection Company
7:50pm • #49
DEC
02
Outside Blog

Good list Jim

Here is a list from the International Association of Certified Home Inspectors (interNACHI) on why to have a home inspectiond performed before listing your home.

Having an inspection performed ahead of time also helps in seventeen other ways:

1. You can choose a certified NACHI inspector rather than be at the mercy of the buyer's choice of inspector.

2. You can schedule the inspections at your convenience.

3. It might alert you of any items of immediate personal concern, such as radon gas or active termite infestation.

4. You can assist the inspector during the inspection normally not done during a buyer's inspection

5. You can have the inspector correct any misstatements in the inspection report before it's generated.

6. The report can help you realistically price the home if problems exist.

7. The report can help you substantiate a higher asking price if problems don't exist or have been corrected.

8. A seller inspection reveals problems ahead of time which:

· might make the home show better.

· gives you time to make repairs and shop for competitive contractors.

· permits you to attach repair estimates or paid invoices to the inspection report.

· removes over-inflated buyer procured estimates from the negotiation table.

9. The report might alert you to any immediate safety issues found, before agents and visitors tour the home.

10. The report provides a third-party, unbiased opinion to offer to potential buyers.

11. A seller inspection permits a clean home inspection report to be used as a marketing tool.

12. A seller inspection is the ultimate gesture in forthrightness on your part.

13. The report might relieve a prospective buyer's unfounded suspicions, before they walk away.

14. A seller inspection lightens negotiations and 11th-hour renegotiations.

15. The report might encourage the buyer to waive the inspection contingency.

16. The deal is less likely to fall apart the way they often do when a buyer's inspection unexpectedly reveals a problem, last minute.

17. The report provides full-disclosure protection from future legal claims.

2:37pm • #50

Thank you for sharing, Al.

4:14pm • #51

Leave a response…



(optional)
What does the graphic say?
 
Rainmaker_large

Jim Bushart

Cassville, MO

More about me…

Home Inspection Services of Missouri

Address: PO Box 742, Cassville, MO, 65625

Office Phone: (314) 803-2167

Email Me

Thoughts of a Missouri Home Inspector.


Links

Archives

RSS 2.0 Feed for this blog

Find MO real estate agents and Cassville real estate on ActiveRain.