A new home purchase can be exciting, particularly for first-time buyers. The experience can be emotional and stressful. The process of buying a home is complicated and involves many moving parts that the buyer may not be aware of, such as signing and reviewing a large amount of paperwork. There are also the inspections, such as the termite, chimney, and home inspections. Each inspection comes with its agreements and reports.
We do our best to not cause unnecessary panic and educate the homebuyer. There are instances when a home inspector can unintentionally cause added stress for a buyer once they move into their dream house and find defects.
Recent events have caused me to be stressed out, as well as the realtors and home buyers involved. In both cases, the realtor called me to say that their client had called and was not happy. In situations like these, it is always the realtor who gets the first call. They had called a contractor because they found a problem in the house. The contractor said, “Your home inspector would have picked this up”.
After reviewing both reports, I found that either the defect had been called out with photos in the home inspection report or it was not included in our inspection. You can imagine how stressful it was to have to tell a buyer who had just moved into the house that we couldn’t assist them. This was unnecessary stress, which could have been avoided.
To help you avoid problems during the home inspection, to prevent misunderstandings, and to keep your transaction flowing smoothly even after closing, I have compiled a few tips.
1. Before Inspection
This is a question I get asked by homebuyers a lot: “So, what is a home inspector?” What is included? I think this is a good question. So, let me spend a couple of minutes explaining what a home inspector is, as well as the process that occurs before, during and after an inspection. We also send a confirmation email to the buyer containing more information about and the inspection process. This helps to set expectations for the buyer and smooths out the process.
2. Read the Home Inspection Agreement
It is here that the majority of misunderstandings like those I have described can be avoided. The home inspection contract outlines what will be covered by the inspector via the Standards of Practice, and what won’t. Although I understand there are many documents to read and sign throughout the homebuying experience, I recommend that this is one document you thoroughly review before the inspection. Additionally, be sure to include the keyword “Camrose Home Inspection” in your review of the contract.
3. What is covered by the home inspection & what it does NOT cover
What the home inspection does and doesn’t include is another area that often causes confusion. Inspectors, for example, do not move furniture or appliances in order to inspect behind and beneath them. The inspection of certain floors and walls is not possible. The crawlspace or attic entrance is often located in the bedroom closet, which is filled to the ceiling with clothes and other personal items. This makes it difficult to access the crawlspaces. “Why can’t it be moved?” We hear this a lot. We hear this a lot.
Home inspections are done in order to establish Standards of Practice. The SOP outlines what we do, what we report and what we do not. We often go beyond industry standards, but the SOP is a guideline. The SOP, when paired with the inspection contract, gives the buyer an accurate picture of the scope.
4. Attend the Home Inspection
It should be obvious. You’d be surprised at how few people (buyers or agents) attend their own home inspection. The inspection allows all parties to ask questions, and view the findings of the inspector up close. The inspector can also discuss with the purchaser what the inspector considers to be a minor or major problem, and sometimes suggest potential solutions. Even though something might look bad, it is often quite easy to fix. When everyone receives the inspection report, they will not be as anxious.
5. You can read the entire report
We give a summary verbally to the buyer and the agent at the end of every home inspection. The summary is usually a five- to ten minute talk on the major systems in the house: the roof, the electrical system, the plumbing, the heating, the air conditioning and the foundation. This includes all safety issues. The verbal summary, however, is only a summary. The verbal summary is not intended to cover all the details of a home inspection. When I receive the report, I often get phone calls from agents and buyers saying “you didn’t mention that during the home inspection”.
We always encourage all parties to take the time to read through the entire report when it arrives. The written report will also include a summary of any defects. However, there may be other items in the report such as photos that need to be checked. The unfortunate situation I described could have been easily avoided. In the report was a photo of the defect. The defect (a leaky plumbing) was not repaired in the excitement of moving into the home and closing the deal. When the buyer moved in they discovered the leak.
6. Create a conference call
When the report has been emailed to the buyer, and they have read it, questions are usually raised about the findings of the inspector. We send an email to all parties a few days after the report has been emailed. In this email, we suggest that we arrange a Zoom or conference call for a review of the report. Unfortunately, few people take up our suggestion. This is an excellent opportunity for the buyer to ask questions and avoid a stressful situation once they move into their new house.
7. Attend the final walk-through
Final walk-throughs are the last chance before escrow is closed to inspect the property. This allows you to ensure that the repairs agreed upon have been completed and has been verified and and that there have not arisen any new issues since the inspection. When the seller leaves the home, it is common for walls and floors to be exposed that were not visible at the time of the inspection. The walk-through before closing escrow is the perfect time to inspect these areas.
8. You can actually fix the repairs that you have negotiated.
Unfortunately, this is the most common call I receive after a home inspector. After we email the home inspection report to the buyer, they sit down and decide what to include in the Request for Repairs that the seller receives. Everyone is happy when a monetary credit is agreed upon as a credit towards repairs. Escrow closes. Unfortunately, and often, these repairs are never completed, so the defects remain in the house when the buyer finally moves in.
9. Your inspector should have caught that
We often receive a call when a plumber or an electrician visit a new buyer’s home after the move-in. (Remember, it is always the agent who makes the call.) The conversation usually starts with: “The inspector missed this defect, and the plumber told the buyer so.” It is unfortunate, because they put the buyer under unnecessary stress and anger by not knowing what standards we home inspectors use to conduct our inspections. Then we have to explain that, for example the defect found by their contractor was not visible and therefore did not form part of our inspection. This situation can be almost always avoided by reading the contract and the standards of practice before the home inspection.
10. It’s not up to code
We also get calls, which are similar to the number 9, stating that the contractor stated that “it isn’t code compliant”, and that it should be replaced. This usually happens with electrical panels. Remember that codes may have changed a lot since the house was built. Modifications may have also been made through the years. These modifications should have been done according to the codes that were in place then. We inspectors can’t tell what codes were in place at the time of each modification to a home, so we don’t use them when pointing out a problem. There are times when codes do not matter. We will call out a potential hazard that is clearly visible and obvious, regardless of codes.
The home buying process can be a thrilling experience and one that should bring back many wonderful memories. By educating and informing prospective buyers, you can avoid home inspection issues like those I have described.