It is generally accepted that a thorough home inspection is needed before purchase. Inspections can save buyers and sellers (those who do a pre-sale inspection) from unpleasant surprises.  What specific information should you be looking for? How do you use this to protect yourself? The following are some pointers to keep in mind when you have your inspections.

Inspectors are generalists

An inspector is like your general practitioner physician. He is not an expert at everything he inspects. This is one of the most common misconceptions of first-time buyers.

The participants

A Seller and his agent are usually not present. This permits the buyer, his Realtor and the inspector to explore and talk freely. One exception would be if the property has unique problems or aspects that the seller needs to personally explain to the inspector. In the case of a pre-sale inspection, the seller and his agent should attend.

Active participation

If you are dressed appropriately (grubby clothes for crawling and/or climbing), most inspectors will be glad to have you follow them around. Carry a notepad to keep track of your questions. It is best to save most of them until the end so as to leave your inspector free to concentrate and take his own notes.

The inspection

 A comprehensive home inspection covers all the major systems in a property, with an emphasis on health, safety and structural concerns. Although many things can be wrong in a house, some are definitely more worrisome than others.

Foundation problems can be relatively minor, or very costly. If this comes up, ask the inspector if he recommends a further inspection by an engineer. If you hire the engineer, make sure to get a written report. It is worth the extra expense.

Drainage can also run the gamut in terms of seriousness. Besides problems with mold, mildew and possible pest control, drainage inadequacies often lead to foundation deterioration. Take your inspector’s advice on what steps to follow.

Sewer line (also called sewer lateral) problems must not be underestimated. If the seller has indicated past blockages or backups, or your inspector recommends it, hire a plumbing contractor who specializes in sewer lines to videotape the line for breaks.

Roofs are another area of concern. If the roof needs replacement, it could entail removing several layers of existing materials, replacing eaves and/or framing under the roof and, possibly, replacing gutters and downspouts. If there is any question about the condition of the roof, get at least one written report by a licensed roofer.

The inspector’s summary

Once the inspection is completed, and before he leaves, your inspector will orally summarize his findings. This is when it is most important to have your agent present so he or she will be able to accurately convey this information to the seller’s Realtor.

Now is your opportunity to pose those questions you have been saving. Also, ask about the implications of what was reviewed. It is the severity, or possible long-term effects, of the problems that you should be most attuned to during the summary. Listen carefully to not only what he says, but how he says it.

Your agent should be an “interpreter” of the inspector’s language. I consider this one of my most important jobs in protecting my clients. Based on experience, I often “hear” something somewhat differently than what my buyer or seller may have heard.

For example, an inspector might say, “It would be a good idea to have a licensed heating contractor check out the furnace’s heat exchanger.” Understanding inspector-speak, I translate the statement to:

“1) The heat exchanger looks like it has a crack, but I am not a heating expert. If it does have a crack, it will possibly emit dangerous, life-threatening gases; 2) You can bring in PG&E to look for free, but a licensed, experienced heating contractor will often have better credentials than the PG&E inspector. Therefore, it is worthwhile to spend $65 to $75 to hire a professional .”

In order to survive in the business, an inspector learns to choose his words carefully. If he overstates the problem, he can be liable to the seller for “defaming” the property. This can lead to his getting a reputation as a “deal-killing” inspector, and a possible loss of referrals from agents.

Conversely, if he fails to call the problem, or understates its seriousness, the buyer can be harmed and justifiably look to him for compensation. An inspector who misses important issues will be thought of as not being thorough, and, again, risk losing agent referrals.

The best inspectors have a knack of telling it like it is without sounding alarmist. They also explain the positives, not just the short-comings, of the house and grounds.

Responsibility

As long as the seller owns the home, he also owns the problems. Unless the price has been discounted to reflect the defect(s), the seller will customarily need to make a concession in either price or payment for serious problems. In some circumstances, e.g., where there are multiple offers, a buyer may be willing to accept the situation “As Is.”

Problems can have a variety of fixes which are not readily apparent. Coming up with effective analyses and solutions is what differentiates the finest inspectors and Realtors from those less qualified.

Separate major from minor

The purpose of an inspection is not for the buyer to create a laundry list of $50 and $100 items for the seller to pay or repair. It is to look for serious, i.e., expensive, problems—ones that negatively effect value.

Be concerned with the major problems, as indicated above, and with health and/or safety issues that need immediate attention. Demanding that the seller pay for minor items, e.g., changing exterior door locks, can sometimes be the death knell of an otherwise smooth transaction.

Inspection contingency timing

Having a clause in the purchase contract that reads: “Buyer hereby removes his physical inspection contingency based on seller agreeing to the following...” is not the removal of the contingency. Asking for seller concessions is actually reopening negotiations on that part of the contract.

It is preferable not to wait until the very end of the inspection period to ask the seller to either pay for a problem or adjust the selling price. Some agents do not clearly convey this to their buyers.

If the date for removal of your inspection contingency has passed while the seller is deciding how to respond to your request, you could be allowing time for an offer from another buyer.

Final thoughts

Home inspections are only as good as the inspector you choose and the real estate professional who helps you analyze the findings. Always ask for a written report and read it carefully. It should not contain anything significant you did not hear during the inspector’s oral summary.

Once you have had the inspection, remember there is no right or wrong to real estate transactions; there is only what feels comfortable or acceptable to both parties.

Related Articles: Home Inspections, Part 1; Not Just Termites, Part 1 and Part 2; Are Permits Important?; Check Drainage; "As Is" Pointers, Part 1 and Part 2; Sewer Line Blues