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On the surface, it looks like a Dream Home: plenty of closet space, a big kitchen and yard, two-car garage and a nice neighborhood. But maybe the basement leaks, the electrical wiring is shot and the roof is on its last shingles. Enter the home inspector, whose job is to survey the house to see what kind of condition it is in. A home inspection protects and informs the consumer and can protect the seller. It helps consumers make more informed decisions. Nuts and Bolts The basic purpose of an inspection is to find any major structural or mechanical problems and to try to show a prospective buyer how to take care of the house, says Bill Harpole, an inspector and president of the Kentucky Real Estate Inspection Association. For example: A little water damage on a wall or ceiling might indicate a leaky faucet needs a washer, or a significant problem, such as that the roof needs repair. Defects often cited by inspectors include inadequate wiring: worn-out furnaces; heat pumps that don't work properly; carbon monoxide leaks; and cracked heat exchangers. In homes at least 20 years old, the most common items needing repairs are roof shingles, electrical wiring and water drainage, according to the American Society of Home Inspectors, a nationwide organization. In new construction, it says, inspectors find water seepage in the basement, inadequate attic ventilation, poor roof construction and substandard masonry and finish work. Typically an inspection is arranged and paid for by the buyer, but in some cases a seller might hire an inspector to get a better sense of the condition of the property before negotiations begin. The average inspection takes two to three houses. The average cost is $250, but varies with location, type and size of the house. "That means (you should) shy away from the $50 inspection," says Glenn Edelen, vice president of the Louisville Board of Realtors, who adds that inspectors should provide a written report. Inspections are usually for the benefit of the buyer, and generally come after a deal has been struck. But there's the rub. Sales contracts usually stipulate that the deal is contingent on a favorable inspection, and an inspection that turns up costly defects could give a buyer cold feet. Some real-estate agents view inspectors as "deal killers", although in many cases a bad report just leads to more negotiating over final price. The inspectors' association believes that the best time for an inspection is when a seller first (puts his home on the market). That way a favorable report can provide the seller with a sales tool, while one that spots defects can give the seller an opportunity to make repairs early and thus eliminate any surprises later that could ruin a deal. Peterson favors an inspection at the time of listing but says most sellers don't want to pay for it -- and besides, he says, buyers probably want to have their own inspection. With more focus on seller disclosure, though, an inspection done for a seller could lead to more accurate disclosures and "keep sellers out of hot water," says Sharon Vornholt, owner of AmeriSpec Home Inspection Service.
After the Inspection Once an inspection has been performed, the buyer should receive a written report detailing findings. "The home inspection industry has no standards for this report, so there will be variations in its format, depending on the inspector," notes the Better Business Bureau, adding, "Thus it is important to understand and agree on the format of the report before the inspection." According to the American Society of Home Inspectors, the report should describe the condition of the home at the time of the inspection, based on visual observation, and should provide an indication of the need for major repairs. "Finding defects doesn't mean one shouldn't buy the home, only that the consumer can know in advance the type of repair costs to anticipate," the society says. "If repairs are needed, the buyer may be able to negotiate to have the work done by the seller, or lower the price of the home based on the cost of the repairs." Above all, though, an inspection can offer peace of mind. "A consumer should be as informed about the property as he can" to satisfy his comfort level, says D.J. Hines, president of the Southern Indiana Board of Realtors. "Whether it's seller disclosure, inspections or warranties, buyers need to avail themselves of the tool that does the best for them," he says. Inspectors look for the good and the bad
* Inspectors normally don't test for environmental hazards such as radon gas or asbestos, but some inspectors might be able to do so as an extra service or might refer prople to someone who can do such tests. * Prospective buyers should accompany inspectors during the inspection to obtain important information about the house and become familiar with matters that are expected to be part of the report. * A buyer can help the inspector by asking the seller to provide pertinent information about the house, such as fuel bills, age of appliances and information about repairs. * Inspectors should be impartial, noting the good as well as the bad. "Our purpose is not to pick someone's house apart, but to educate the buyer so he can understand what he's buying," said Sharon Vornholt, owner of AmeriSpec Home Inspection Service. "Some inspectors may go in with the idea of saving buyers money. We go in to educate and let them know what they're buying so they can make an informed decision."
Checklist When you go house-hunting, you might want to consider doing your own inspection before you make an offer for the home. The American Society of Home Inspectors, a nationwide group, recommends a few ways consumers can determine what kind of condition a home is in. * Take note of the overall impression. Is the house well kept? Are the outside walls straight? What's the condition of the paint? * Observe the roof. A tar and gravel roof should last up to 15 years; sphalt shingle, 15-20; wood shingles, 15-20; and wood shakes, 20-25. * Look at windows and door frames. Is the wood decayed? * Check pavement, driveways and horizontal brick surfaces. Have any cracks been filled? Is there damage from freezing? * Is the attic insulation adequate? * Plumbing: Turn on the bathroom sink faucet and the shower and flush the toilet. Fill the sinks and tubs with about three inches of water to see whether they drain properly. * Look over the interior for signs of leaks, water stains or cracked plaster. * Open the cabinet door to the fuse boxes or circuit breakers, but don't remove the panel cover. The average house requires 100 amp service at both 110 and 220 volts. Are they labeled as such? * Check the heating equipment. How old is it? Has it been maintained? |
