Issue #8 April 22, 2000 

What is a Home Inspection and why are they such a problem?

You thought you knew didn't you? Please forgive me up front for becoming a little personal on this one. I promise not to do this often.

Placed in proper perspective for you as a Realtor or Associated Professional: A professional home inspection is one of your best defenses against litigious post-closing surprises. It's your insurance and it's free, paid for by your client. Why then are you and your associates not excited to have a home inspection on every property you sale?

Home Inspectors kill deals! Do they not?

Sellers, builders and agents hope I find little wrong and my client's hope I find everything that is wrong.

Could there be more fertile ground for conflict?

The reason there are so many conflicts and misunderstandings between Realtors and Home Inspectors in most cases is simple.

We are not reading out of the same book.

Within the OFFER TO PURCHASE AND CONTRACT is the crux of the conflict between Home Inspectors and Realtors. The following statements clearly spell out most Realtors positions on inspection issues: "shall be performing the function for which intended and shall not be in need of immediate repair … any items not covered … above are excluded from repair negations under this contract."

Many Realtors seem to have the idea that the home inspector functions as part of the real estate contract. Fortunately nothing could be farther from the reality. Most home inspections are about much more than functioning as intended, in need of immediate repair or items which are excluded. Please allow me to explain with an example:

A few weeks ago I walked into a home and immediately noticed that it was very warm and humid. The reaction of the buyer was "man this home has a great heating system and I won't need a humidifier" I think the Realtor concurred. Unfortunately there was a much greater issue to be discovered. Condensation was literally dripping off of the windows.

The heating system was electric and the owner had added non-vented gas space heaters in the den and basement apartment. These units were being used as the primary heating source and left running most of the time. A large portion of natural gas is water and its combustion produces large amounts of water vapor. In a conventional gas furnace this moisture is vented out the flue or drained down the condensation drain. With non-vented gas appliances this vapor is vented into the home to condensate on colder surfaces like windows. The water on the window glass runs down the glass onto the wood frame and over the years may destroy it.

You say, that's no big deal! But there is more, much more. The water vapor is warmer than the surrounding air, therefore it rises, migrates into the attic, condensing on the underside of the colder roof sheathing and rafters. What does a consistent source of water over an extended period of time do to wood? It causes mold, mildew, and rot and attracts wood destroying insects. The owner of this home was literally destroying his home for the sake of a lower heating bill.

Per the real estate contract, all components were functioning as intended and not in need of immediate repair. Had the units not been on at the time of the inspection it is possible that I might have even missed the issue and not realized that there was per the real estate contract "excessive moisture adversely affecting the structure." The average owner, buyer or Realtor would probably have not had a clue that this cheap properly installed and operating source of heat was destroying this home. Fortunately for this buyer, I don't operate per the real estate contract and am concerned with much more than function and repair.

The American Society of Home Inspectors puts it like this:

"The home inspector's service is primarily one of education. The goal of the inspector is to provide buyers with a better understanding of the physical condition of their prospective home so that they can make a more informed decision."

The Home Inspectors goal is to educate the buyer and goes far beyond "functioning as intended" and in need of "immediate repair."

If your goal is to close the deal, our goals are and always will be in conflict. Our goal should be the same "To serve the best interest of our client" If after being educated about the condition of the home your buyer decides it's no longer the home of their dreams. Don't be upset, you're doing your job "looking after the best interest of your client." Go find them the home that works. Guess who they will call when they sell this home or for their next home, or recommend to their family and friends? Instead of gaining one bad deal you just might have 3 or greater deals. Which do you prefer?

What is a Home Inspection?

I have my on very simple criteria for every home inspection.

If my daughter or son were purchasing this home and my grandchildren will live here what, given my experience and knowledge, would I want them to know about this house. Or you could look at it in a different light. It you or members of your family were purchasing this home how would you want me to go about this inspection? If you are in agreement with my criteria, we will get along fine. If not, then we will have a conflict.

What would the naive buyer be incensed to discover after the sale?

A home inspection is a thorough objective visual examination of the condition of the visible accessible components of a home and property by a North Carolina Licensed Home Inspector. The average inspection usually requires two to three hours and examines the home and all of its surrounding property and components from the ground up. The observations are set forth in a comprehensive written report. The written report will describe the property, its components relating existing defects and potential problems.

A professional home inspector will also highlight the positive features of a home. Many of the home inspector's observations or recommendations help to dispel home buyer anxieties, and provide useful home repair and maintenance suggestions.

Home inspections are quickly becoming, and will continue to be, an essential component for sellers, buyers, and Realtors in North Carolina. The days of "buyer beware" where fewer than one in ten homes sold were inspected are reversing to become "seller/agent beware." Buyers are no longer willing to gamble on hidden problems, unexpected repair costs or potential major disasters. Today's smart consumer demands better information for the largest long-term investment of their life. As a Realtor you must assimilate yourself, your business methods and your clients to this new reality.

My personal goal:

To be the home inspector listing agents, seller's and builders fear, but call to inspect the homes they and their families purchase.

My wife says she hopes she sells enough Real Estate so we can eat because Buyer's agents won't be recommending me. Time will tell! I believe most agents really down deep care about the future of their buyers and want the best Inspector money can buy.

Never close a deal without an inspection!