We at 3B Properties have chosen a great real estate inspector that has saved us thousands of dollars finding building’s misfortune.  When we look at prospective investment properties, we’re crunching numbers and calculating rental income or flipping profits, but hardly ever look under the rug.   Usually we’ll have reason to reduce the purchase price by thousands or require the seller to pump thousands into repairs.  Once an offer is accepted, it is hard for the seller to back off from your requests especially when given a professional inspection report.  Finding your own home inspector to evaluate the condition of a property before you buy it is crucial. You wouldn’t buy a car without taking it for a test drive, so why would you buy a home without checking it out?  A little money spent up front can save big bucks down the line. Latent defects are costly and often unseen to the untrained eye.

Should I Hire a State-Licensed Inspector?

You may have an Uncle Henry who is a great handy-man, so why not let him inspect the property?  First, it’s not likely that Uncle Henry is qualified to provide a comprehensive evaluation of the property; secondly, should a problem arise down the line, without a state licensed inspection of the property, you’ll be at a great disadvantage in any legal dispute.

How Do I Find a Home Inspector?

If you’re using a Realtor or Real Estate Agent to represent you in your purchase, he will provide you with a list of state-licensed inspectors.  If, however, you’re representing yourself, you might be overwhelmed trying to figure out where to find one.

Advertisements in the phone book or online, and word-of-mouth are always options, but there is a caveat emptor (buyer beware) to keep in mind.  How do you know if that inspector who has a snazzy ad is really qualified to properly inspect your home?  Call your local Board of Realtors and ask for a list of state-approved inspectors.  If he’s licensed by the State, he’ll be on their list. Most states also have an online website with licensee information.  You may even want to try a locator service, such as Home Inspector Locator.

Who Grants an Inspector his License?

Each state grants licenses to home inspectors as a measure to provide buyers an educated evaluation of their property; but in order to obtain that license, an inspector must pass a thorough examination, and in some states, attend a number of classes to satisfy the requirement for the license.

How Do I Know Which Inspector to Hire?

Once you have a list of licensed home inspectors in hand, how do you know which one is the best?  All licensed inspectors have passed a state-approved examination, but not all inspectors have the same level of expertise, nor do they offer the same services. 

Just as you would interview a Realtor before you hire him, so should you interview your inspector. Don’t be intimidated; ask some questions.

• How long have you been licensed and will you provide me with your license number? (States have websites where you can check the authenticity of the licensee and see a list of any grievances that may have been filed against him)
• What is your background?
• Are you licensed to perform pest/termite inspections?
• Do you have a certification in heating/air conditioning repair?
• Do you go onto the roof to inspect for damage, or assess its condition from the ground?
• Will you provide a list of references?
• Do you sub-contract other evaluation professionals for my inspection, and if so, does your fee include their payment?
• Do you inspect swimming pools/spas?
• Does your inspection include an evaluation of the security system?
• Are you insured and bonded?
• What are your fees and are they based on square footage?
• Are you paid at closing as part of the closing costs, or outside of closing at the time of inspection?

I’ve Hired an Inspector. What Now?

In most states, a Seller’s Disclosure Form is part of the real estate transaction. This is a comprehensive list of pertinent property details: amenities in the house; age of the roof; presence of appliances; type of heating and air conditioning; details of repairs that have been made or repairs that are incomplete. This information is akin to a map for the inspector, so have this available to discuss with him before the inspection begins. Gather as much history as you can. Ask the seller for any previous inspection or engineering reports and any permits obtained for remodeling or room additions.

What is Covered in a Home Inspection?

Before your inspector begins his evaluation, he should give you a list of what he covers. The following provides an overview of what is most often covered in a typical home inspection.

(1) Structural Systems: foundation stability; grading and drainage; roof condition; attic
insulation (type and rating); walls (exterior and interior); ceilings and floors; doors and windows; fireplace and chimney; attached porches and decking; and attached carports and garages.

(2) Electrical System: service entrance and panels; branch circuits; GFI (ground fault interrupter); wiring type and efficiency; and light switches and outlets.

(3) Heating and Air Conditioning Systems: type of system and the energy source; brand of equipment; approximate age of equipment; compressor size and compatibility with square footage; and type of air ducts and vents.

(4) Plumbing: water supply; tub and faucet fixtures; outside hose bibs; water pressure; drains, type of pipes; water heating equipment; and showers, tubs and basins.

(5) Appliances: built-in microwave; cook-tops and stoves; built-in ovens; garbage disposal; trash compactor; exhaust fans; dishwasher; central vacuum; garage door openers; doorbells, and dryer vents. (Washers and dryers may not be included).

Not usually covered in a standard home inspection, but available for additional fees are:

1. Swimming pools and spas.
2. Shrubbery, sod and trees.
3. Sprinkler systems.
4. Outbuildings.
5. Water wells.
6. Septic systems.
7. Termite inspections.
8. Security systems.
9. Structural engineer’s report.

  
What if My Inspector Finds Something Wrong?

Should an inspection turn up major problems, your inspector may suggest that you have further evaluations performed by specific professionals. For example, an in-depth inspection of heat exchangers or air conditioning systems may be recommended, particularly in the case of older systems; additionally, gas lines may need to be inspected by the local utilities provider. Suspicion of swimming pool malfunction may be referred to a certified pool specialist. 

In most residential real estate contracts, unless you’re purchasing a property “as is with no repairs,” there are provisions for backing out of the sale if repairs are not performed by the seller, or if you can’t come to an equitable monetary agreement for the cost of the repairs.

Are Home Inspectors Insured?

State licensed inspectors will usually carry a base policy called “errors and omissions,” a type of insurance carried by most real estate professionals.  Ask to see a copy of his insurability. Don’t be afraid to ask for the verification; you’re paying for a highly skilled service; a qualified inspector will not be offended.

Ask your inspector if he stands behind his inspection; request a written warranty. Some inspectors will give a time-limited guarantee on certain portions of the inspection.

Buying a property is a big investment; don’t assume its structure is a solid as it looks.
A thorough home inspection by a licensed and trained inspector can help reduce the risk of those “after-closing” repairs.