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Is There Any Value In A Home Inspection?

By
Real Estate Agent with Ken Doss Realty Inc.

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.

Comments(42)

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Jim Frimmer
HomeSmart Realty West - San Diego, CA
Realtor & CDPE, Mission Valley specialist

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.

Aug 16, 2009 03:10 PM
Phil Anderson
Principal Broker & Owner of New Portland Home - Portland, OR

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.

 

Aug 16, 2009 03:32 PM
Jim Frimmer
HomeSmart Realty West - San Diego, CA
Realtor & CDPE, Mission Valley specialist

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.

Aug 16, 2009 03:57 PM
Erik Hitzelberger
RE/MAX Alliance - Louisville REALTOR-Luxury Homes - Louisville, KY
Louisville - Middletown Real Estate

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.

Aug 16, 2009 04:17 PM
Charles Buell
Charles Buell Inspections Inc. - Seattle, WA
Seattle Home Inspector

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.

Aug 16, 2009 04:26 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

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

Aug 16, 2009 04:29 PM
Roland Woodworth
Benchmark Realty - Clarksville, TN
Benchmark Realty

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 16, 2009 04:34 PM
Harold "Hal" Place
A1 Connection Realty, Inc. - Sun City Center, FL

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.

Aug 17, 2009 12:38 AM
Chip Jefferson
Gibbs Realty and Auction Company - Columbia, SC

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.

Aug 17, 2009 12:42 AM
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

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. 

Aug 17, 2009 01:52 AM
Phil Anderson
Principal Broker & Owner of New Portland Home - Portland, OR

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.

Aug 17, 2009 02:21 AM
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

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

Aug 17, 2009 02:51 AM
Bill Blair
Coldwell Banker Realty - Covington, GA
Covington Georgia Realtor Covington Living Homes

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.

Aug 17, 2009 08:31 AM
Esko Kiuru
Bethesda, MD

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.

Aug 17, 2009 08:58 AM
Sandy McKee
Sunstreet Mortgage - Tucson, AZ

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

Aug 17, 2009 10:42 AM
James Quarello
JRV Home Inspection Services, LLC - Wallingford, CT
Connecticut Home Inspector

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.

Aug 21, 2009 12:13 AM
Erby Crofutt
B4 U Close Home Inspections&Radon Testing (www.b4uclose.com) - Lexington, KY
The Central Kentucky Home Inspector, Lexington KY

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 22, 2009 02:07 AM
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.

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.

Aug 30, 2009 08:04 AM
Robert Snowden
Ken Doss Realty Inc. - Zachary, LA

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.

Aug 30, 2009 03:38 PM
Bruce Breedlove
Avalon Inspection Services - Colorado Springs, CO

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?

Oct 20, 2009 02:26 PM