7 steps to a home inspection
NEW YORK (This Old House) – Charles Bellefontaine found out the hard way the value of a good home inspection. In 1991, Bellefontaine and his wife, Loretta, signed a contract to buy a three-bedroom, one-bath Georgian-style house in Elmhurst, Illinois.
Read the article from CNN Money.com
http://tinyurl.com/5a2lt
Charles has become a great inspector in his own right. It is interesting to hear of his own experiences. But, in the example of a leaking tub, I wonder how any competent inspector would be expected to find it if there was no evidence of a leak at the time of the inspection.
As to costs, I would submit that another important factor in the determination of piece is the extent of the inspection the client has bargained for. There are all kinds of inspections, from 4-point to ones which include ancillary services including wood destroying insect, mold, septic, well, and radon to name a few.
The article is absolutely correct in the amount of time it takes for a decent inspection, and Charles’ comment regarding a home inspection for $99 is also correct. Unfortunately, many clients shop by price as a deciding factor.
As to liability, the interestng thing is that the inspector is the sole disinterested party in the real estate transaction; he or she receives the same fee regardless of whether the dwellng sells or not. On the other side of the coin are the realtors (buyer and sellers agent) the brokers, the attorneys for both sides, the lender, and the seller. All these folks make money based on the sale; no sale no compensation. Yet, despite all this, the inspector is liable for failing to discover any defect in the three hours or so he has spent in the home. By the way, the inspector is prohibited from disassembling anything or destroying anything during the process; the inspective is non-invasive and non-destructive. So, the inspector has a daunting task… all for around $400 or so for a basic inspection.
Do inspectors have limit of liability clauses in their contracts? Typically, unless prohibited by law (as in Massachusetts). Does arbitration guarantee lower court costs? Maybe. Often, when inspectors carry E&O insurance, the carrier may limit what happens after a claim is tendered. Even when arbitration is permitted, sometimes the cost to arbitrate far exceeds the limits of liability (where the clause is not deemed opressive), or costs several thousands of dollars.
There is no simple formula to all this. Concentrating on the experience and education of your inspector is the most important piece of the selection process. There are many quality home inspection associations out there, including InterNACHI, ASHI, NAHI, and others. Some even prohibit soliciting busness from Realtors (IHINA). Make sure the inspector indicated which standard of practice they follow. Some states, like Texas, have a mandated SOP for inspectors to follow.
Know the facts, and realize that a home inspection is the best chance a buyer has at determining how a house has “lived” and its readily apparent condition on the day of the inspection. Participate wth your inspector, and be sure and ask questions along the way. Remember, the inspector works for YOU. He or she is MORE than an inspector; they are your consultant. Leverage their knowledge and experience to the max.
