Spend a little now, save a lot later
Making a home inspection pay off
Jonathan Self got an important reminder of the value that home inspectors bring to the home-buying experience.
Last year, the licensed real estate broker for Chicago’s Center Coast Realty worked closely with a couple preparing to buy their suburban dream home. Then a home inspection revealed foundation issues.
“The inspector called it out and recommended they seek the professional opinion of a structural engineer before they moved forward with the sale,” Self said.
“The inspector kept the concern in perspective without scaring anyone.
... Turns out, the foundation issue was severe enough that it needed attention. But after more investigation, it wasn’t severe enough to be a major risk.
“My buyers were able to secure a sizable credit from the seller to help fix the issue, which was well worth the time and money invested in hiring an inspector. More importantly, they now have a paper trail showing they did everything by the books to get the issue fixed, which they may leverage when they eventually sell the house.”
This example reinforces the wisdom of an expression favored by Cedric Stewart, 13-year residential and commercial sales consultant and team leader at the Rockville, Md.-based Entourage Residential Group of Keller Williams Capital Properties. “Spend hundreds, save thousands,” he said.
Kathryn Bishop, an agent with Keller Williams Realty in Studio City, Calif., agrees.
“Home inspectors are the best start to determining the condition of the home,” Bishop said. “Unless a buyer is a contractor, the buyer does not have the knowledge to assess any of the mechanical and structural components of the home. Home inspectors will point out areas of concern that the buyer can then investigate further before buying the home, not after moving in.”
In general, the greatest value a home inspector will offer potential buyers is quickly detecting and alerting them to “surface issues, such as a sagging foundation, truss issues or mold issues that could run deep,” said Nathan Outlaw, CEO with Onvico Inc., a commercial and residential contractor based in Thomasville, Ga. “I, or one of our project managers, often goes to look at a property where a home inspector was not used and shock the homeowner with a repair price on a home they thought was in good shape.”
Stewart offers the following tips to ensure a home inspection pays off:
“Home inspectors are the best start to determining the condition of the home.”
Do your research: Before hiring an inspector, shop around.
“For starters, call two to three companies and ask them what services they offer, how long they’ve been in business, how many inspections they’ve done, and check their references and reviews,” Stewart said.
Don’t be swayed by price: Don’t select a home inspector simply because he or she is inexpensive. And don’t assume expensive home inspectors will be better than others, Stewart said.
“Many inspectors have backgrounds in construction and building, so they know their way around a house,” he said. “These guys may not have the fanciest websites or catchy slogans, but they can still do an excellent job.”
Check the tech: Inspectors should come prepared with electrical testers, moisture meters and other devices to assist them.
The Entourage agents work with inspectors who use thermal imaging cameras. These cameras are capable of detecting moisture behind walls and identifying other potential problems the naked eye can’t see. Gadgets can be little more than gimmicks, though, if the inspector doesn’t have the training and time to use them. Ask about the inspector’s experience with the
— Kathryn Bishop, an agent with Keller Williams Realty in Studio City, Calif.
devices and their limitations.
Be a pest: Many home inspectors invite the buyer or buyers to walk the inspection with them. “Take advantage of this opportunity to ask them about problem areas in the home, future issues to keep an eye out for, where to find emergency shutoffs and how to operate systems, as well as maintenance tips,” Stewart said.
Make them accountable: Some inspectors write notes on their reports, take their fee and vanish. You should demand a great deal more, Stewart said. Make sure your inspector commits to being accessible to answer questions and clarify findings for you and the seller after the inspection is done, he added.
If an inspector calls for further investigation, follow through on that recommendation, Bishop said.
“When the inspector points out a problem, get licensed professionals to give ... a written quote which can then be used to renegotiate the price of the home,” she said. “If the seller does not come up with a solution that the buyer likes, the buyer can walk away from the purchase and get (his or her) deposit back, as long as the buyer has put an investigation contingency into the contract.”