September 8th, 2009 at 4:51 pm

   

Finding a home inspector is not really a problem anymore.  Economic and licensing environments during the last 10 years allowed a large increase in the the population of inspectors in most markets.  Unfortunately, current economic conditions have not burned through the bottom-dwellers and weekend warriors yet.  The real struggle for a concerned agent or buyer is how to locate and hire a truly competent inspector.  I live in Texas, a mandatory licensing state, however, agents are learning that simply being licensed does not guarantee an inspector's quality.  So what is an agent to do?  You want your client to be protected and you want good service.  Based on my own experience as an inspector, I suggest eight considerations in selecting an inspector.  I will provide two points at a time to maintain your sanity and mine. 

 

Understand the service your client is buying.  According to most definitions, a home inspection is a visual evaluation of the conditions present and apparent at the time of the inspection.  Therefore it is not predictive, technically exhaustive, warranted or guaranteed.  A good inspector provides information regarding the conditions of the home so the buyer has a better understanding of the property they are purchasing. Using practical insight and skills gathered from professional training and field experience, a good inspector is able to deliver information to buyers within proper context.  For example, any inspector can see a sheet rock crack, but not every inspector can correctly communicate the significance of the findings and relate that information in a useful way without unnecessarily scaring the client.

 

 Evaluate Inspector Routine.  Every home is different. But an accomplished, thorough and knowledgeable inspector always approaches inspections (regardless of shape, size or age) with the same organized approach.  Good inspectors conduct every inspection with a similar routine in order to ensure consistency, organization and thoroughness of inspections and reports. Inspectors that are not consistent in their routine and/or allow themselves to be distracted from their approach can easily lose track of where they have been and miss something. This sounds like a minor issue, but let me assure you, as one that has raised many young inspectors, this point separates professionals from wannabes. 

Evaluate technical competence.  Competent inspectors require a vast knowledge of systems and structures from HVAC systems to the roof.  Good inspectors constantly seek and absorb knowledge staying current with updated systems, modes of function, and methods of installation.   That being said, great inspector know that they can not know it all.  Fear and run from anyone that thinks they know everything about any subject as vast as your home.  A good inspector acknowledges his "mortality" and will occasionally admit to a client or agent that he does not know what is going on with something.  Generally this statement is followed by "Let me do some research and get back to you".  As an example I recently inspected anew, $2.89MM, 10,800SF vacation home on a lake near Houston. All of the lights were controlled by a $180,000 home automation system.  Even after 6,000 homes, I don't mind telling you that I was clueless.  I have seen my share of big homes with all the bells and whistles, but I never seen a home with a full rack of servers controlling everything.  Thankfully the wiring sub was there with his programmer finishing some adjustments.  I got a short class and learned something new.  I know several inspectors who would have BSed their way through that inspection rather than admit a lack of knowledge. 

 

 Ask about experience.  In license states like Texas, many agents try to judge experience based on license numbers presumably to judge how long the inspector has been licensed.  While certainly a valid method of determining years in the business, license numbers are not necessarily a marker for experience.  If you want to judge experience, ask how many homes the inspector has evaluated. If the inspector is newer, ascertain what he/she did before becoming an inspector.  You may sometimes discover that the "newer" inspector has more practical experience than the one who has an older license number.  I am also not a big fan of "weekend warriors".  A part of my attitude is based on competition, the largest problem that I have is what aircraft pilots call "lack of currency".  To become truly experienced you must not only do a bunch of inspections, but you must do them often enough to truly set and build real world relevant experience.  Do you want to fly with a pilot that has not flown in the last three months?  Do you want to trust your client to an inspector whom has been at it 15 years, but does 35 per year or the guy at it 8 years who does 300 per year?  I personally believe that an inspector does not cease being a newbie until 1,500 inspections.  He does not start being an experienced inspector until 3,000 inspections. 

 Demand good people skills.  Bad bedside manner has caused many a deal to go south.  If you boil it down, home inspectors are in the communication business.  How you communicate what you find is always as important to what you find.  There are enough calm, competent diplomats in our profession that there is no reason to settle for an arrogant, blustery inspector.  A top inspector will use clear language, very little jargon, and explain the situation calmly offering few qualifications.  He or she will also answer follow-up calls.  In addition, a customer-service-oriented inspector will welcome clients to attend their inspection.  Life is too short to deal with any inspector who has such bad people skills that you spend more time explaining his personality to your client than discussing his findings. 

 

 Expect good writing skills.  A good inspector realizes that a well written report is all that is left when the inspection itself is over.  It needs to accurately reflect the issues noted at the time of the inspection. It is also, at a real level, a marketing tool.  It represents the quality of my company.  For some inspectors, it proves that regardless of numbers, they are still armatures.  Good reports are generally long enough to clearly explain the issues, without burying them.  In today's marketplace, a good report is computer-generated, includes color digital pictures, and is in your hand no later than 24 hours after the event. You should be able to easily locate repair items and other concerns within the structure of the report and there should be no significant items appearing in the report that are not discussed on site at the time of the inspection. Realistically, some limitations and exclusion language is acceptable; however, it should not be excessive.

 

Demand insurance.  Most agents have Errors and Omissions (E&O) insurance.  Most inspectors do not. The hard truth is that if the client feels wronged and discovers that the inspector has no insurance, the agent is often the next target.  Thus, an agent who works with uninsured inspectors is in effect insuring uninsured inspectors. Many inspectors still think that it is too expensive to carry E&O.  The average full-time inspector in the United States did about 300 inspections per year as of 2005.  According to my own experience, buying E&O insurance since 1995, it is affordable if an inspector looks at it on a "per-inspection" basis.  Many insurance companies accept a down payment and monthly payout that amounts to around $10-$15 per inspection.  Affording insurance is a matter of priorities and management, not expense. 

 

 Do not allow price to become the deciding factor.  As a rule, new inspectors try to penetrate the market by undercutting those that have been around longer.  Make sure that your client is making a decision based on factors that matter in the long term: experience, communications skills, service and quality of the inspection. Critically, today many inspectors are so desperate to survive that they are really cutting down fees.  Do not forget that $50 or $100 saved on an inspector can cost the buyers thousands of dollars in repair fees. 

 In the end, a great inspector is not solely decided by technical expertise.  Business and communication skills are equally as important to providing superior customer service.  Great inspectors will be around for you when you need them-for years to come.  They stand behind their work, communicate clearly and follow-up with pressing client questions. A great inspector is an asset to both you and your clients, and is an essential member of every real estate agent's extended professional team.

 

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September 8th, 2009 at 4:49 pm

 

Let’s face it, home inspections would be shorter and less painful for all parties if the seller was really ready for the inspector.  Homes that are well prepared end up with fewer write ups, a shorter negotiation and buyers that are less worried about surprises. 

 

I have been providing agent the following checklist for a number of years.  I am a Texan, so those of you that deal with snow and basements may have a slightly different list, but this should still be of some help. 

 

First things first.  Get your attitude right.  AN inspector is not an impediment to a transaction.  Good inspectors can inform a buyer without threatening your sale.  Treat the inspector with respect and he will treat you (and your home) with respect.  If you are a jerk, he will wonder why and work his hardest to try to figure out what you have to be so defensive about.  You never get a second chance to make a first impression.  We have all herd it because it is still true.  It always will be.  You want the inspector to be as happy and as positive as a prospective buyer. 

 

Starters.

·        Clean your house. 

·        Mow the yard.

·        Pick up dog mess from the yard.

·        It’s best that pets be removed from the premises during the inspection.  Keep in mind that the inspector needs access to the entire home, so the garage and the backyard is not a good idea!

·        All utilities on (Electricity, Gas, Water and all Pilots lit ) so the inspector won’t need to return to finish

 

Exterior

·        All exterior doors should be accessible

·        All door locks should be operable

·        Remove debris from gutters/downspouts

·        Trim trees from within 4 feet of the roof slope

·        Trim shrubs at least 18 inches away from the foundation

·        Lower soil, where possible, to reveal the top 4 inches of foundation

·        Insure that the interior of the garage is accessible and that the door and/or opener functions.

 

Interior

·        All interior areas should be generally accessible

·        If present, Crawl Space access should be clear

·        Remove clutter from utility rooms used for storage

·        Attic should be accessible. Make sure the stairs can be pulled down without endangering belongings/people below

·        Remove clutter in closets

       

Electrical

·        Electrical Panel needs to be accessible to the inspector. Remove anything blocking the panel for easier access

·        To avoid unnecessary write-ups, replace all burned out bulbs.

·        Remove “creative wiring” such as extension cords used in attic, interior and exterior.

 

Plumbing

·        Fix any leaks before the inspector arrives or let the inspector know.  Otherwise, testing the plumbing could result in a very wet mess.

·        Correct any plumbing “alignment” issues, hot should be left or up on all controls.

 

Heating and Air Conditioning

·        Install a clean filter

·        Consider having the unit cleaned and serviced especially if it’s been a while

·        Maintain all repair invoices

 

Fireplace/Chimneys

·        Especially if has been a while, clean the fire box before the inspection.  If you have anything in the fire box that would prevent lighting the fireplace, remove it. 

 

Foundation

·        Remove wood, debris or stored items away from the foundation.

 

Appliances & Systems

·        Any appliance or system that is going to stay with the house should be operational or disclosed to the buyer as not operational.  This includes all kitchen, bath, yard and garage mechanical systems. 

·        The control panels for the sprinkler, pools and any other devices must be accessible. 

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September 8th, 2009 at 4:47 pm

 

One of the continual debates among inspectors, defense attorneys and other interested parties is not what to write, but how to write it.  The question is how much information does anyone need about any one issue noted. 

 

In general most agree that there are three levels of comment on an issue:

 

1. Simply describe the issue.  Some inspectors hold that it is their role to simply list the issues noted during an inspection.  No inspector can know enough about the buyer to know what each piece of information means to any buyer.  Also an inspector can not determine the breadth of repairs needed based on his visual inspection.  The buyer of the inspection service must do further research on his own.  E.g.  “The half bath toilet is loose and can be shifted on the waste pipe.” 
2. Describe the issue and explain what it means to the buyer.  Many inspectors not only note issues, but explain, basically what it means to the buyer.  Most avoid in-depth explanations and stick to the most prevalent impact.  This technique still stays away from specifying repairs.  E.G.  “The half bath toilet is loose and can be shifted on the waste pipe. This can allow a leak at the floor or subfloor which can lead to both cosmetic and structural damage.” 
3. Describe the issue, explain what it means and specify repairs.  Under this technique the inspector provides all of the information needed by the buyer except cost.  The risk is that he/she could be wrong about his repair specifications.  E.g.  “The half bath toilet is loose and can be shifted on the waste pipe. This can allow a leak at the floor or subfloor which can lead to both cosmetic and structural damage.  Remove the toilet, check the floor decking, wax ring and mounting bolts, repair as needed and remount.” 

 

In the end, many of us use all three techniques, depending on need. After all, you probably need more information about a foundation failure indication that a simple broken window.  I am always a bit concerned about any inspector that sticks to a specific technique for all items.  This will invariably bog down the report or make it too sketchy. 

 

Part of developing good communication practices for an inspector, is to develop a sharp understanding of how much information is needed for each item. 

 

Good Luck.  

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