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WHEN A HOME INSPECTOR WRITES "DOESN'T MEET CODE". . . . . Best Business Practices.

By
Real Estate Agent with Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate 303829;0225082372

WHEN A HOME INSPECTOR WRITES "DOESN'T MEET CODE". . . . .

That is a statement that is guaranteed to make a home buyer become very insecure about the Home Inspectorhome he has decided to buy. 

Inspired by an article by Charles Buell, Home Inspector extraordinaire, I was taken back to some of the home inspection whereby the mention of the "code" was problematic. 

My question is always, which code?  Rarely is that question answered.  If a feature in a house doesn't meet the code, we need to know WHAT SECTION OF THE CODE.  The buyer or seller may want to follow up with the county to determine the future problems that may ensue.

I LOVE HOME INSPECTORS.  They provide a sense of security for home buyers that they are buying a home that will give carefree living for a reasonable amount of time assuming that good home maintenance is provided.  When a home inspector does a thorough job, we use that report to negotiate seller repairs, often defects of which the seller was unaware.  Knowing that sellers are not required to make any repairs, home inspectors help if they limit their comments to actual defects.  A written report may reference future maintenance recommended to the buyer which buyers appreciate.  Of course, if poor maintenance is evident in any system, that should be written and the buyer with their agent will know how to handle it in the repair notice because poor maintenance does affect future life of many systems.

"DOESN'T MEET THE CODE" can be a deal killer for sure.   Home inspectors will be helpful if they write defects that reflect the PRESENT CONDITION OF THE HOME and not try to show their superior knowledge (which they surely have) by expressing opinions about HOW THE HOUSE SHOULD HAVE BEEN BUILT.

Some time ago, we had a home inspector insist that he write in his report that a basement window "doesn't meet the code for egress".   Normally, in a home owner installed an improvement without a permit, this would be helpful information.  However, THE HOUSE WAS 250 YEARS OLD and the windows in the basement were original.  If the home inspector had mentioned a comparison of basement windows today compared to 250 years ago, it would merely have been interesting.  Writing the windows as a defect in an historical property made no sense. 

On new construction, we had a home inspector write that the riser on the bottom basement step was 1/2 inch less than the code, a fact that was known to the code inspector and the builder and under present condition, not going to change. 

Home inspectors are often the only person, other than a builder, who is competent to understand the myriad components and systems of a house and tie them all together to give a home buyer a feeling that they are buying a "good home" and not a money pit

It helps if the home inspector examines a home as it is, which is how the homes are purchased "as is" with a home inspection contingency.   How the home inspector believes the house should have been built, especially if the house is 250 years old cannot possibly fit within a home inspection contingency.

BEST BUSINESS PRACTICES REQUIRES THAT AGENTS KNOW JUST WHAT A HOME INSPECTIONON MEANS ON NEW CONSTRUCTION.  Home me buyers can only protect themselves by having (and gladly paying for) a home inspection New Homeduring the construction of the property.  Waiting for the final pre-settlement walk-through is not going to give a home inspector the opportunity to inspect much other than the systems in a home which are covered by manufacturers warranty.

It's the basic foundation, framing and tying the house together from the ground up that needs an outside and objective inspection.  Don't forget, there is no home inspection contingency for new construction.  Best find defects or omissions while it's possible to make proper changes.  This is why we recommend a 3 step inspection, foundation (before the slab is pured), pre-drywall and final pre-settlement.  If any phase is not included to save inspection money, best to leave the final pre-settlement inspection.  When the builder's representative advises that "you don't need to pay a home inspector, the county does it for you", BEWARE!  That is a sales-person working for the builder talking.  There are many homes with lasting defects that affect value and even safety that were inspected and passed by the county code inspector.  The builder obtains a permit based on architecturals submitted, not on the quality of construction.   

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988. 

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Lenn Harley, Broker, Homefinders.com, 800-711-7988

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Comments(66)

Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

If there is a problem I like them to talk in terms of consequnces or risk to the structure or safety of people.

Sep 20, 2011 12:14 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Great post Lenn, as always.  It's often a difficult conversation for me to explain to my clients why they need a home inspection for a new-build home.  You can imagine that some of them are just downright put off that I mention it.  Amazes me every time!  I explain that mistakes can happen to the best of us and wouldn't it be nice to discover them now or even within the first year to allow the builder to repair those items.  I still receive rejection!

Sep 20, 2011 12:32 PM
Bill Reddington
Re/max By The Sea - Destin, FL
Destin Florida Real Estate

This is a reason that I go to the home inspections. Replace a 250 year old window. Don't think so. I think a home inspector needs to realistic in their inspection.

Sep 20, 2011 12:32 PM
Karen Crowson
Coldwell Banker Residential Brokerage - Rancho Bernardo, CA
Your Agent for Change

Len, I had a home inspector recently state that the windows didn't meet code. The buyer's agent was on top of it - she stated, well the windows were just put in two years ago, and were permitted. "Oh yeah, he agreed. I guess they're ok then." 

Sep 20, 2011 04:50 PM
Joe Nernberg
AmeriSpec Inspection Services - Simi Valley, CA

This a great topic. Imagine inspecting an 80 year old home with a 10 year old kitchen and 2 year old windows. The original foundation may have met the building code 80 years ago, but people will be occupying it this year. Structural recommendations should be stated as "safety upgrades." Every counter outlet should be GFCI protected to satisfy the code at the time the kitchen was remodeled. The newer windows should meet current code for egress, light and ventilation.

I may get some grief over this, but inspectors look for code compliance at every home. We base our findings on the code and we chat amongst ourselves on-line about codes. I rarely use the term "code" in my inspection reports, but if a client asks me if an item is not to code, I can mostly answer YES.

Sep 20, 2011 05:14 PM
Donald Hester
NCW Home Inspections, LLC - Wenatchee, WA
NCW Home Inspections, LLC

Lenn,

This one got lots of great comments.

I should point out you always should inspect a home to its period of build. I always state that in my inspections but reserve the right to make suggested safety and functional upgrades to any home based what is observed and what the clients needs may be. That does not mean the seller should be on the hook for it all. The client should know what cost may be ahead for them so they can plan for it or not.

As someone stated, there is the test of time, but there is also the end of time, nothing last forever ; )

To Jennifer's comment(#39), I have been behind some large restoration companies and it would be highly advisable for any home owner to have an independent inspector evaluate what work was performed (on the insurance dime). I have seen some pretty shoddy work in areas the homeowner will not see i.e. crawlspaces and attics. The big companies usually contract out specific work and quality control can be an issue.

Not all of these companies are the same, some of them milk the insurance companies which we all pay for in the long run.

 

Sep 20, 2011 05:27 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Gene.  Indeed.  Risk reduction is one of the best uses of a home inspection report.

Jan.  All we can do is advise.  Buyers have to live with (and complain about) their own decisions.

Bill.  Absolutely.  That was the most classic case of "overkill" I can recall. 

Karen.  And after that, I'm sure you took everything the buyer asked for with a jaded eye.  That home inspector didn't do those buyers any favors.

Joe.  The problem with that (code) focus is that it fails to do what a home buyer needs, an inspection of the systems for condition. 

Donald.  Indeed, restoration for insurance purposes is a difficult situation for inspectors.  Good contractors are hard to find.

Sep 20, 2011 11:26 PM
John DL Arendsen
CREST "BACKYARD' HOMES, ON THE LEVEL General & Manufactured Home Contractor, TAG Real Estate Sales & Investments - Leucadia, CA
Crest Backyard Homes "ADU" dealer & RE Developer

Unfortunately Lenn in California nowadays the era of generalization is gone. With our pervasively litigeous climate no one wants to accept any liability. The minute a "general home inspector" sees a plumbing, electrical, roof, sewage, etc problem the first thing they do is tell their client to hire a specialist for a more comprehensive evaluation. I've actually seen some folks end up spending $1000 by the time they finished with all their inspections.

You're right about the foundation issue as well. foundation problems are definite deal breakers not to mention the cost of evaluating the problem.

Sep 21, 2011 04:46 AM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

You're right Lenn, seems stupid to quote today's code on a 250 year old house. Of course there have been improvements.  Maybe something like 'by today's construction codes'.  Still doesn't mean anything is going to get changed from the report.

Sep 21, 2011 07:40 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

John.  You folks need some of our inspectors.  They write defects and don't write lists of contractors for further inspection.

Give me the list of defects and I'll write that THE SELLER shall have unit repaired and produce a paid receipt.

Lyn.  I though it unreasonable too.  We never used that inspector again. 

Sep 21, 2011 10:32 AM
Jayson Holland
Listings.com - Denver, CO
Jay Holland

 

Amen, it is 90% in the presentation. Ususally the inspector is a referral from the Buyers broker and the Buyers will normally trust their broker ~ so that same trust will now automatically extend to someone they have just met....the inspector. Or, in many cases the Buyers will hire their own inspector without a referral from their broker/agent.

Either way, the facts are still the facts, but if the inspector is bad at presenting his findings it can have a negative effect on the entire transaction.

I normally dont say anything during an inspection, as the broker I am there for access and to supervise, and to communicate if something goes wrong or if the inspector cant find something, like the water shut off valve, I can call the listing broker or seller to get that info. The only time I have interrupted was when an inspector started guessing what things will cost to fix, and he was so far wrong I had to step in and say something.

Hey inspectors ~ your job is to discover/uncover and point out defects and offer advice on maintenance.  You dont have to know (or pretend to know) what everything costs to fix, even though every Buyer is going to ask you exactly that.  Its ok to tell them to ask me, or you can say "you'll want to get an estimate on that". If you dont know, its ok to say you dont know and then they can go find out later via calling a contractor and getting an estimate. Dont try to guess if you have no freaking clue because that will scare the hell out of the buyer, and then when they actually get a real estimate that is accurate and a fraction of what you guessed, they will doubt the validity of the replacement/repair. Thank you!

 

Lenn, good post! Every Buyer should always always always always get a home professionally inspected. Every time. Brand new or 250 years old. Every single time. ASHI and NAHI exist for a reason. Make sure as a referring broker you know!

 

 

 

 

Sep 21, 2011 10:59 AM
Reuben Saltzman
Structure Tech Home Inspections - Minneapolis, MN
Delivering the Unbiased Truth.

I totally agree.  If a home inspector has a good understanding of building codes and standards, they should be able to explain why something is wrong or a problem, and what could happen if it's not fixed.  Saying something should be fixed because it 'doesn't meet code' is kind of a cop-out, dead-end answer.

Sep 21, 2011 11:09 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Jayson.  Spoken like an experienced agent indeed. 

The home inspection is, indeed, very important, as is the home inspector.  I expect a home inspector to do what the buyer needs from the inspection, a report on the condition and functionality of the structure itself and the systems therein. 

Anything beyond that is extraneous and can cause confusion in the buyer. 

The facts ma'am.  Just the facts.

Sep 21, 2011 11:13 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Reuben.  BINGO!!  Just as it is a "cop-out" when an agent who doesn't understand something simply says "it's the law", whether is is or not. 

 

Sep 21, 2011 11:16 PM
Erby Crofutt
B4 U Close Home Inspections&Radon Testing (www.b4uclose.com) - Lexington, KY
The Central Kentucky Home Inspector, Lexington KY

WHy would a needef foundation repair kill the contract if the price and repair are right?

Someone's gonna buy that house and (most likely) make a profit doing so.

Isn't that where your negotiation steps in?

Sep 21, 2011 11:59 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Erby.  We can't negotiate away foundation defects.  If the seller was interested in making expensive foundation repairs and they are expensive, they would have done so.

There's no guarantee that "someone's gonna buy that house".  Many properties with foundation defects simply go to rental or are foreclosed.  If investors buy it, they often make cosmetic repairs and then rent it. 

Without extensive and expensive engineering inspections and reports, the cost of many foundation defects can't be negotiated.  Even then, there is no assurance that the "fix" will be effective.  Many foundation failures, footers, etc. are caused by subterranean conditions or extensive grading matters. 

This is a matter of risk management.  You can't "negotiate" away risk.  My job as a buyers' broker is to inform and advise buyers.  Rarely is the risk of foundation matters something I'd advise.

Sep 22, 2011 12:39 AM
Eva Castillanes
Keller Williams - Thousand Oaks, CA

Great post and useful tips.  I agree a good inspector thats understand keeping it simple and to the point goes a great deal farther than unnecessary embellishment. 

Sep 30, 2011 06:03 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Eva.  Exactly the point.  Inspect and write is what we need.

Sep 30, 2011 08:58 AM
Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

It is truly interesting to read some reports and then find the answers and keep deals together.

Dec 27, 2011 06:04 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Elite.  The important thing is that we must "read the report". 

Dec 27, 2011 10:38 PM