David Swartz, a Phoenix home inspector from Advantage Inspection Service, tells John Cunningham the 3 key points to selecting a quality home inspector.

These are trying times for real estate sales professionals.  Among other challenges, often the home inspection results are the most difficult to negotiate.  How can we cross the hurdle and benefit everyone in the transaction?  It begins with the seller.

Over the years we have all seen, or maybe even written, real estate ads with phrases designed to get attention. Ads with “Plumbing Recently Replaced”, “New Roof”, “Totally Renovated” grab our attention when shopping for a home. Terms like these can help sell a home, but they can also come back to haunt you. Let me expand on the listed examples:

“Plumbing Recently Replaced”
Eager sellers and salespeople often describe plumbing replacement work improperly. Plumbing Recently Replaced could mean replacement of the fixtures only – things may look new but the real concern is in the supply and waste piping condition. Is the supply piping copper, galvanized steel or plastic? Has all or part of the piping actually been replaced? One common technique for replacement of deteriorated galvanized steel piping with copper is to replace the horizontal runs in the attic first. At some later date the intent is to replace the vertical sections in the walls. Sellers and salespeople routinely claim that the supply piping has been replaced when, in fact, only half of the supply piping has been replaced. Then come the leaks . . .

“New Roof”
The term new is the first problem with this phrase, better is to give an age or date of replacement. Has the entire roof been replaced or just a portion? Did a licensed contractor as evidenced by a receipt do the work? In some cases the term “New Roof” is nothing to brag about because Uncle Bob put it on with his friends during a weekend filled with lots-o-beer and pizza. The new roof being touted may require a complete tear-off and replacement, by someone with actual competency, in order to be considered a reliable roof.

“Totally Renovated”
Here is a phrase that means something different to everyone. To me “Totally Renovated” means that every part of the house that shows wear has been replaced. I would be upset to find out that the roof is really ten years old, the heating and cooling system is eight years old, etc. on a house that was claimed to be totally renovated. Even though the middle-aged systems may not require replacement, it is misleading to use such broad descriptions of condition.There are many more expressions that cause confusion. You can likely think of others. Use of overly broad statements regarding property condition keeps real estate lawyers in business. Be careful! A home inspection can provide protection on the important issues regarding property condition and the extent of repair work or renovation. Without an inspection, everyone involved in the real estate transaction is at risk.

Even the most conscientious home builder has obstacles to perfection. Of course, perfection can be relative and subjective as it relates to a new home. However as in all meaningful endeavors, perfection should be the target. Following are a few barriers to perfection within the home building industry.

Production Cost vs. Quality

Every new home builder is keenly aware of the costs to purchase land and complete a structure at a price that the market will bear. Competition within the home building industry is fierce. Market forces compel every home builder to walk the fine line between quality and cost. Most Arizona home buyers are unwilling to pay for the level of quality seen in other parts of the country. Therefore market forces prevail.

Material Design Considerations

Each component and system designed for the home has one common element. It is engineered to cost a minimum to produce, while still being able to serve its intended function. This condition can be a problem because actual installation conditions are not always according to the manufacturer specifications. As an example, many of the problems related to polybutylene plumbing systems are a direct result of a product engineered with too much emphasis on cost reduction, and too little tolerance for imperfect field installation practices.

Lack of Substantial Oversight

The process of building a structure is a complex endeavor involving many specialized trades and materials. The general contractor or superintendent oversees all activities while placing trust in the individual subcontractors for day-to-day oversight. It may seem that with the various levels of supervision, including municipal code inspections, mistakes during construction are non-existent. This is unfortunately not the case.

As long as humans are involved in the construction process there will be defects in every house. Individual workers and sub-contractors come and go, creating potential for significant errors. Code inspectors are overworked. Some tradesmen are under-skilled and others just don’t care about the quality of the finished product.

Fraud and Incompetence

As in any profession, a certain percentage of fraudulent activities exist. Unlicensed contractors and sub-contractors place the Buyer and Realtor at substantial risk. Relief is not available from the Registrar of Contractors Recovery Fund for mistakes made by unlicensed contractors. Protracted legal battles are the result. Go to www.rc.state.az.us to check on the status of a contractor’s license. the matter of incompetence can also be a problem. It can be present anywhere from the lowest to the highest levels within any organization. With the homebuilder example, the problem is magnified if the supervisory personnel are also under-skilled or share in the lack of commitment to quality.

New Home inspections

Every new home should be inspected by a competent, independent inspector. Unlike the municipal code inspector, an independent home inspector will view the home as a composite of inter-related systems and determine where problems exist or are likely to occur. Standards of the professional home inspector are as specified by the American Society of Home Inspectors (ASHI). Inspections will address electrical, plumbing, heating & cooling, roof, and structural concerns. Not all home inspectors have the necessary experience to perform a new home inspection.

Fees for inspectors can vary widely based on the number of visits, drive time, size of the structure, and need for additional services. All new home inspection pricing should be determined up front. Suggested minimum services are a final only inspection, a 2-stage inspection (just before wall insulation is installed and a final), or additional visits as required. Supplementary services can include contractor license investigations and builder negotiation.

Bottom Line

Every home purchased, either new or re-sale, represents a very significant investment. A new home has the unique feature of allowing defects to be corrected during the appropriate stages of construction by the appropriate personnel. Having an independent inspection performed on a new or re-sale home is the intelligent thing to do.

When searching for a good buy in real estate it’s important to look carefully for signs of physical problems with the property. Issues can range from simple neglect to major structural damage. Can you learn to spot the potential major issues?

You can learn to recognize some major problems. Home & building inspectors are hired daily to identify existing adverse conditions at properties. As a result, we can learn from the experts. In our experience of conducting thousands of inspections, the ten most common types of defects are:
1. Faulty electrical wiring
2. Roof problems
3. Heating/cooling system defects
4. Plumbing issues
5. Inadequate insulation and ventilation
6. General poor maintenance
7. Improper drainage around the structure
8. Air/water penetrating cracks at doors and windows
9. Structural concerns
10. Potential environmental problems

At your initial walk-thru you should observe carefully for conditions that go beyond simple cleaning and minor repair needs. Look outside for site locations where water will flow, soil should slope away from the structure. Old equipment and components with damage apparent are evidence that costly repairs or replacement could be needed. View under the eaves of the roof to see if leaks are showing up at the perimeters. Look for discoloration on any surface that might indicate leaking or the presence of mold. Go ahead and open up cabinets below sinks and view the areas adjacent to bathtubs or showers. You can even go a step further by lightly banging on the tiled shower surrounds lightly with a closed fist. Loose tiles and spongy backing material indicates the need for tear-out and replacement.

Other defects like electrical, roof and heating/cooling system problems are not always so obvious. Finding an excellent inspector will always be your first line of defense. You can do a search at www.ashi.com for home & building inspectors online. When you hire a professional inspector, go around the property with him or her and learn all you can. Ask questions about what they are seeing and what conclusions they are drawing from the existing evidence. If you really want to get good, take some classes or a distance education course on home inspection.

Hiring a professional inspector, inspecting the property carefully yourself, and scrutinizing the seller disclosure information will go a long way in ensuring the purchase of a sound investment. Never underestimate the importance of your own diligent evaluation. After all, who cares more about the purchase than you do?