For many years we have been contemplating real estate transactions from the buyer’s perspective. There are all manner of ads from real estate practitioners touting their ability to sell your home for more money and get the deal done faster than the next one. That is called a “seller-centric” approach to real estate transactions. There is nothing wrong with that. However, it could create a situation where the buyer is out of the picture.
Question: I am buying my first house. Where does the inspection fit in, and how does that work?
Answer: Let’s look at the inspection process from the “buyer-centric” perspective, meaning the focus of the sale is on the buyer.
Rosie on the House certified partners Vikki Gorman and Johnathan Miller, with Realty Executives, say buyers need to know what they are buying with greater accuracy and what they may encounter once they become the homeowner.
“Supporting the buyer requires us to switch focus,” says Gorman.
I couldn’t agree more. The current process includes many safeguards for buyers, including the opportunity to conduct a home inspection, other examinations and the opportunity to research information about the home before purchasing it. Good stuff, but there really needs to be more.
A key feature in a home purchase is the standard 10-day inspection period. While a good process, there can be a lot of confusion regarding the lack of specifics included in those reports. Not all home inspection reports are created equally. Gorman says that most inspection reports are great, but there have been some horrible ones. Those reports will note potential deficiencies but don’t provide explanations for what they may mean or offer an estimate for the repair to a potential homeowner. For example, it may be noted, “The roof appears to have some wear. You should get a licensed roofer to inspect.”
That is a bit short of all the information you should have. As a buyer, you are already paying for the home inspection and are now faced with more questions. Home inspectors are, by their training and licensing, generalists. That is their job. Most reports will note possible issues that need to be examined more deeply.
Another example of generalities is cracks in the stucco and foundations. How are you to know the difference between a crack that is superficial versus a crack that may have more to it than meets the eye?
The inspection report will typically refer you to a stucco specialist or a structural engineer for further examination and comments. Again, not really helpful to the potential homeowner.
“The buyer has the opportunity to have more inspections completed if they wish. Scheduling within the 10 days can be done,” says Gorman.
Though the more inspections you order, the more money you will spend. And the inspection fees cannot be paid out of escrow because if you back out of the contract, the inspector will not get paid.
If you don’t back out of the contract, you can request repair work from the seller to complete, or you can negotiate a credit to have the repairs done yourself.
Gorman tells us she and Miller take the buyer step by step through the buying process. A deficiency that frustrates both the buyer-centric real estate practitioner and the buyer is the lack of detail associated with a generalized home inspection.
Some buyers use the inspection report to squash the purchase out of fear of the unknown.
Q: What do you think should be included in a home inspection?
A: The issues that are often not considered part of a typical home inspection yet are a “must-know” for the potential homeowner include:
Asbestos testing: This is age-dependent. If the house was constructed before 1980, asbestos may have been used.
Lead paint testing: Also, age-dependent. If the house was built before 1978, lead paint could have been used.
Radon testing: If your home is located in a geographical area known for the presence of radon, it needs to be tested.
Permits: One of the more common problems homeowners face is when they try to remodel their new purchase, only to discover that previous work was not permitted. The inspection needs to determine if any work requiring permits was completed, and checks need to be done with the local building departments to see if permits were pulled.
Short-term rentals: Has the neighborhood you are looking to buy in have, or did they have short-term or vacation rentals? This can be very difficult to find out and isn’t always a bad element for a buyer.
In conjunction with the items listed above that are not normally looked at, it’s recommended that you get inspection reports from roofers, electricians, plumbers, HVAC, structural engineers, civil engineers and general contractors.
Ask for specific recommendations for work needed and the costs associated with those recommendations.
Gorman notes that buyers have an opportunity to purchase a standard home inspection. As a buyer-centric realtor, she believes the more comprehensive approach better suits the serious buyer and makes people more comfortable.
Such an in-depth process will also serve you, the homeowner, as a basis for establishing an ongoing maintenance program and help you prepare a budget and work schedule you can live with.
Contact the Rosie on the House office at 1-888-767-4348 for the inspection information you need.
