6 Myths about Home Inspections

1. Myth: You only need a general contractor to do a home inspection.
2. Myth: A termite inspection is all you need to know about a home you’re buying.
3. Myth: All home inspectors’ credentials are the same, as long as they are certified.
4. Myth: An inspection report isn’t needed as long as a qualified person just tells you about the property.
5. Myth: The inspection report is a seller’s repair list.
6. Myth: A home for sale "As-Is" does not need an inspection.

These are from California but these myths are probably just as ... wrong  anywhere in the US or the world

I have a list of home inspectors on my MaureenMcCabe.com website

Ohio home inspectors are not licensed yet... It's coming soon? 



Copyright 2006 Columbus Best Blog and Maureen McCabe

Dian Hymer a real estate expert columnist on Inman News wrote:  
  

How many home inspections does a buyer need?
 
One doesn't always do the job

 The Inman News link requires a paid subscription.   

 "Most buyers have inspections done before they conclude a home purchase. However, recommendations for further investigations often are overlooked, and this can have serious consequences."

 "One buyer bought a striking contemporary in a multiple-offer competition. The home inspector recommended that an engineer evaluate the foundation. The buyers failed to heed this advice. After closing, they began to worry about the unevenness in the floors. They consulted with an engineer who told them that the foundation was faulty and that the house was moving."

 "Had the engineering inspection been done during the inspection contingency time frame, the buyers could have renegotiated the contract with the sellers. Depending on how the contract was written, they might have been able to cancel the contract without penalty if they hadn't wanted to go ahead with the purchase."

Hymer went on to write that the buyers are in mediation, their next step is binding arbitration because of the terms of the contract.   

Hymer shared another scarey story about a new build with a musty smell....  but I am going to share my own buyers scarey story. 

My own buyers scarey story reflects the two reasons, that buyers don't pursue additional inspections that Hymer outlines in her Inman News column, money and time.  My buyer asked to see a home being sold by an unrepresented seller (called a For Sale By Owner or FSBO.)  It was his parents property.  Long story short at the Home Inspection the buyer's inspector recommended the buyer have the furnace evaluated further and the chimney cleaned and inspected. The buyer's inspector found some minor repairs that the buyer requested along with asking the seller to pay for an HVAC professional to evaluate the furnace and clean and check the chimney.  The seller agreed to the small repairs but declined anything to do with the furnace or the chimney. The buyer wanted to go ahead and close and have the furnace and chimney evaluated after closing.

Hymer wrote of expense:

"There are several reasons why buyers don't execute further inspections. One is the cost. Spending several hundred dollars or more to make sure you're making a wise investment is minimal when you consider the cost of correcting serious problems. In both of the examples above, the remedies cost thousands of dollars."

Hymer expanded on time:

"Another reason buyers forego recommended inspections is lack of time. The time frame for inspection contingencies is negotiable between the buyer and seller. Sellers like to see the shortest contingency period possible. This can boomerang on the seller if it means the buyers don't have sufficient time to complete due diligence investigations."

"In some cases, further inspections can be expensive. Some buyers don't proceed because they are short of funds and don't want to spend them on what might be a losing proposition. In this case, before giving up, you might ask the sellers to share the expense. If the issue in question is new information that the sellers were unaware of when they put the house on the market, they might be receptive to this approach to resolving the problem. "

Back to my buyer's scarey story.  The furnace had a gas leak AND a carbon monoxide leak and the chimney had cracked tiles in the liner... luckily I was very nervous about my buyer accepting the sellers reply to the buyers request to remedy...my manager was even more sceptical and coached me to urge the buyer to do the inspections before closing.  The seller felt he was paying for a home warranty for the buyer so he was not willing to do the further inspections at his expense.   The buyer did the inspections, the seller repaired the chimney prior to closing. 

There was an ABC Gasline Warranty on the property so they (seller and buyer) got a new furnace before closing. FREE.  I love an ABC Gasline Warranty!!  

What if there was not a gas leak in that furnace  but there was just a carbon monoxide leak?  What if the buyer had moved in and used the furnace before having someone out to service it? 

Scarey? 

Hymer wrote:

"Home inspection reports are often loaded with disclaimers and recommendations to consult with other licensed professionals. The key is to determine which of these recommendations must be done*. THE CLOSING: Contact the home inspector directly and ask him to distinguish a cautionary note from a strong recommendation."

* done before closing.

Other inspections include but are not limited to: radon, gas lines, wood destroying insect, lead paint, asbestos...structural, well, septic, further investigations of furnace, roof, chimney ...check to see if there are bats in the belfry?  I wrote a clause to have the skunk(s) removed from crawl space but the home inspector gamely shimmied in to see what was going on in the crawl space.  Buyers ran from the house based on the inspection but that inspector did not meet up with skunks.

Dian Hymer is a broker with Coldwell Banker in the Oakland California area.  She is featured in various newspapers.   She is the author of "House Hunting, The Take-Along Workbook for Home Buyers," and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books, available on Amazon I believe. 

Copyright 2006 Columbus Best Blog and Maureen McCabe

"5 questions real estate buyers use to their advantage"

Get a 'good deal' through curiosity, negotiation" witten by Robert J. Bruss on Friday, March 31, 2006  is on  Inman News with these five questions:   

1. Why is the seller selling?

2.  How much did the seller pay for the house?

3.  What does the disclosure say and have there been recent professional inspections of the property?

4.  What problems have you had with this home?

5.  How are the public schools? 

OK those are paraphrased... real estate expert Robert J. Bruss phrases number one question:

"1.) WHY ARE YOU SELLING THIS LOVELY HOME?"

Even if it is not a lovely home....

"this is my favorite and most revealing question to ask of home sellers and their listing agents. Even if the home is run-down and shabby, I always try to use that word "lovely" to see if the seller and/or the listing agent have a sense of humor." 

Because if the seller / listing agent have a sense of humor it can get you a 'good deal' on the house? 

Did you hear the joke about the couple who wanted a Baptist dog?  OK religion probably not a good joke but I laughed...

He goes on to explain " The primary reasons the home buyer needs to know why the seller is selling are to (1) tailor a purchase offer that will meet the seller's needs, and (2) determine if the seller is highly motivated to sell."

We are in a buyers market in Central Ohio.  We got here before much of the rest of the US.  Interest rates are great.  There is inventory.  Bruss article is obviously national.   

number two is not going to tell you the whole story. Bruss goes on to ask the seller or listing agent:

"What is the current mortgage balance and are there any other liens against the home, such as a second mortgage or home equity loan, judgment liens, and mechanics' liens?"

When Bruss is the  seller and asked  how much did you pay for the house? he replies: 

"I got a bargain purchase price when this was a run-down shack before I renovated it so my purchase price is irrelevant to today's market value."

Previous purchase price is usually readily available via public records for homes in Columbus and Central Ohio.  Obviously the point is to find out how much room there is for negotiation on the list price.

 number three a 'Residential Property Disclosure' is usually required in Ohio.  The buyer should always do their own professsional inspection of a property.  Bruss like HER Real Living and Real Living recommends  using an ASHI inspector.  I have a link to ASHI on my website ... the Maureen McCabe one.  

  number four  is to find out about problems that have been fixed.... and I guess maybe find the seller who will spill his guts about the neighborhood weirdos, etc. also.  Bruss talks about buying a house where the deer ate his garden.. ??  Note: If you move to southern Delaware County, Licking county, Madision County there are deer.  Farm fields, wide open spaces = deer, and other critters. Move to what was a farm field a year ago expect deer.  Move to the edge of a farm field don't be shocked that you have deer as neighbors.

number five, Bruss suggests various school ranking web sites.  The info those sites get from the public schools at least in Ohio is available to the public. Visit either of my websites for a link directly to school information from the state of Ohio.  Each school district and individual school in Ohio has a report card.   Top quality schools do contribute to value.  Real estate is really, really local.  

I'd link you to the Inman article written by Bruss but the link will be dead by this time tomorrow.  You can pay to have access to the archived Inman articles.   Or go to Bruss'  site on Inman and for $5 you can find out what he thinks the other five questions are that YOU should be asking!  

 "The 10 Most Important Questions Home Sellers Hope Their Buyers Don't Ask," available for $5 from Robert Bruss www.BobBruss.com "  

 Hire an experienced local agent to look out for your interest and ask these questions, seek this and more information for you. 

Copyright Columbus Best Blog and Maureen McCabe