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Inspections You Can Trust
Home Inspection 101For Real Estate Professionals
Presented by National Property Inspectionswww.npiweb.com
This course will leave you with the following:
• A good understanding of the home inspection process
• How to manage your client’s expectations of the home inspection
• How to increase your client’s satisfaction and lower your liability.
Course Objective
Information gathered from an inspection helps bring together buyers and sellers.
• Information leads to knowledge• Knowledge leads to understanding• Understanding leads to agreement
Inspectors should understand their role in the sales process. Buyers, sellers and real estate professionals all have a role in the sales process.
Inspection Completes the Sale
• To share unbiased information about major components and safety issues
• To discuss repair, maintenance or safety issues beforehand
• To move the sale forward
Goals of Inspection
• Most buyers know little about construction
• Answering questions puts mind at ease
• Informed buyers are better satisfied and can better anticipate and plan for repairs and maintenance
• Real estate professionals can focus on the next sale
Informed Buyers
• Preinspection agreement: Defines scope of inspection, standards used and fee charged
• Home inspection report: Should be clear and concise, and incorporate photos
Common Documents Associated With a Home Inspection
Formats vary:• Checklist or narrative• Combination checklist and narrative• Computer-generated• Handwritten• Oral (from a friend with no report)• May or may not include summary• May or may not include photos• Delivered at time of inspection or later
Inspection Report Formats
In any case reports should be:• Clear and concise• Adhere to the standards of practice as per major trade
groups (ASHI, NAHI, NACHI)• Cover all major components• Delivered in a timely fashion• Should define terms used therein: “acceptable,”
“marginal,” “defective,” etc. • Who owns the inspection report?
Report Basics
Characteristics of a good inspector:• Clear and concise• Adhere to the standards of practice as per major trade
groups (ASHI, NAHI, NACHI)• Cover all major components• Delivered in a timely fashion• Should define terms used therein: “acceptable,”
“marginal,” “defective,” etc. • Who owns the inspection report?
Professional Home Inspector
• Should carry general liability insurance
• Should carry E&O insurance
• Many E&O policies have a
“referral” endorsement
Insurance Coverage for a Professional Inspector
Inspection Reduces Complaints/Liability
0%
10%
20%
30%
40%
50%
10 Most Common Areas that Result in Liability (by percentage)
StructureRoofWater IntrusionHVACInteriorPlumbingPoolExteriorAppliancesElectricalOther
Source: FREA
• Adhere to industry standards of practice and code of ethics (ASHI, NAHI, NACHI)
• Inspect readily accessible systems and components• Report:
• Systems/components that aren’t working properly• Recommendations to correct• Explanation of the deficiencies• Reasons with fact that certain systems or
components were not inspected
What an Inspector Should Do
• Predict remaining life of system or component
• Offer advice on methods, materials, costs to fix
component — unless qualified to do so
• Offer to make repairs, refer specific contractors or
receive referral fees
• Comment on market value
• Perform code inspections
What an Inspector Should Not Do
• Immediately after reaching written purchase agreement with home seller
• Advise buyer what to look for in an inspector
• Advise buyer where and how to find a good inspector
Order the Home Inspection
A good inspector:
• Explains the scope and limitations of an inspection: visual review of
readily accessible areas, random sampling of like items, etc.
• Invites the buyer along for the inspection
• Explains how long the inspection will take, what it will cost and when
the client can expect delivery of the inspection report
• Discusses their training, experience and affiliations
Explain the Scope of the Inspection
• Very few homes are in perfect condition
• This sale went through, even though it had severe wind damage, because the buyer better understood what had happened
Set Realistic Expectations
• Secure pets• Turn off alarms• Remove obstructions to:
• Furnace and water heater• Electrical panel• Attic• Garage• Crawl space, etc.
How to Prepare for a Property Inspection
A good inspector will:• Leave things the way he/she
found them• Verify that the furnace/AC is
running and return thermostat to original setting
• Turn off lights or running water
• Make sure doors are locked, etc.
After the Inspection
• Great curb appeal, but the inspector is looking for positive drainage
• Water is the No. 1 issue in most homes
• Need positive drainage on all four sides of the house
• Most drainage issues are easy to fix
Grading and Drainage
• Loose or missing handrails
(inside/outside) are a
safety issue
• Driveway/sidewalk/patios:
• Heaving
• Differential settlement
• Excessive gaps
• Are tripping hazards but
easy to repair
Driveway, Walkway and Steps
• Ledger board should be bolted to the structure
• Railing should have proper height and spacing
• Railings/hand railings should be firmly attached
• Support posts and stair stringers should have no earth-to-wood contact
• Decks can be expensive, but are fairly easy to repair
Porches, Stoops, Decks, Balconies, Patios
• Trees can abrade roofs, heave driveways and sidewalks
• Tree roots can affect foundations, sewer lines, etc.
• Other vegetation should be kept away from siding, air conditioners, etc.
Exterior
Inspection of roof:• Estimate age• Number of layers• Type of materials• Leaking or not• Types of valleys• Flashing
Roofing System
• Chimneys are a frequent maintenance issue and can be expensive to repair.
• Inspect for:• Proper alignment• Proper height• Flashed property• Lined and capped
Chimneys
• There are many exterior coverings, including wood, vinyl, stucco, brick, stone and synthetics
• Some are more high-maintenance than others
• Vegetation can affect siding
Siding and Trim
• A single garage door such as this one receives a lot of use
• Examining the operation, tracks, springs, openers and fit are important
• For child safety, “auto reverse” is a must
Garages
• Swimming pools and hot tubs are high-maintenance
• Could involve filters, skimmers, gas, electric or solar heat, a pool house, etc.
• Must have a self-closing gate with a 6-foot-high security fence
Pools, Hot Tubs and Spas
Sprinklers are mostly out of sight, but not out of mind:• Underground leaks/erosion
can greatly impact driveways, sidewalks, etc.
• Poorly placed heads can lead to water intrusion in the basement, etc.
• In the best case, sprinklers are high maintenance.
Irrigation Systems
Some inspections might require specialists: • Well inspections• Septic inspections• Water potability tests• Seawalls, private docks• Termite, radon, mold, etc.
Miscellaneous Inspections
Inspect for adequacy and safety:• Amps/volts• Service cable• Panel• Branch circuits• Grounding• Wire conductor• GFI• Smoke detectors
Electrical
Current standards require GFCI protection:• GFCI bathrooms• GFCI all kitchen countertops• GFCI unfinished basements• GFCI garages• GFCI crawl spaces• GFCI all outside electrical outlets
GFCI
• National safety standards require smoke detectors
• Can be battery-operated, hard-wired or both
• Can be monitored by a security company
• Some areas require one outside each bedroom
• Now in some areas they are in each bedroom and living area
• Inspectors activate test button only
Smoke Detectors
• Water is the No. 1 concern:
plumbing; plumbing fixtures are
a significant part of inspection
• Inspector is looking for leaks,
adequate flow and pressure.
• Are drains plugged
or sluggish?
Plumbing and Fixtures
Plumbing leaks can
also damage:
• Cabinets and vanities
• Wall behind shower tile
• Subfloors, ceilings below
Plumbing
• Overall size, age and condition
of unit
• Proper location of unit
• Adequate combustion air
• Adequate temperature rise
• Heat source in each room
• Condition, size and location
of ducts
• Condition of blower/humidifier• Heat exchanger (mostly hidden)• Exhaust system (check for flue
gases and other leaks)• Dirty filters obstruct flow and
affect temperature rise
• Thermostat — unit responds to normal controls
HVAC System
Check for adequate heating (gas furnace):
• Overall size, age and condition
of unit
• Outside unit, clean, level and
up off the ground, suction
line insulated
• No obstructions interfering
with unit
• Discharging heat-ambient test
• Adequate temperature drop (14 to
22 degrees)
• Blower clean and variable speed• Dirty filters obstruct flow and affect
temperature drop• Thermostat — unit responds to
normal controls
HVAC System
Check for adequate cooling:
• Cabinets: Countertops, tile and backsplashes
• Stove: Operable burners, not timers• Disposal: Inspect for smooth
operation, excessive noise• Dishwasher: condition, leaking,
proper air-gap device• Ventilator:
Recirculating/noncirculating• Other Built-ins: Microwave, trash
compactor, refrigerator, etc.
Kitchen
• Can be most expensive areas to replace/refurbish
• With simple maintenance, expensive repairs can be avoided
Bathrooms
• Walls, ceilings and floors can be covered by a wide variety of materials
• Inspector checks for deflection/tolerance in floors, bowing or cracking in walls, cracks, stains or wet spots in ceilings
• Operation and fit of doors and windows from the inside
Walls, Ceilings and Floors
Thank you for your time!
For more information or to schedule a presentation for your real estate office, contact your local National Property Inspections franchise owner. Visit www.npiweb.com/FindAnInspector to find your local franchise owner/inspector.