inspections Archives - Page 7 of 9 - Charles Buell Consulting LLC

July 11, 2012 by Charles Buell

Who pays for the unnecessary re-inspection?

There has been many discussions on the Internet about the duties of the home inspectors, the real estate agents, and how important it is for each to not do the other’s job. There have even been discussions about the liability involved when either one crosses the line drawn in the sand.

There is one issue that occasionally comes up involving the inspection report that to me crosses this line—-where the real estate agent is crossing over into the inspector’s realm.

My beef involves “rewriting,” or “reinterpreting” the inspector’s written recommendations.

I have seen the Report Summary (or portions thereof) rewritten and used in negotiating the deal. This rewritten list is then given to whoever is called to do the repairs. Sometimes I am called to re-inspect those repairs. When this happens the “adjusted” summary is barely recognizable from what I originally wrote and usually repairs are NOT satisfactory because the “interpretation” of what I have called out is so different from my original report.

When this happens I then have to call for proper repairs again—-and sometimes get called for a second re-inspect. Who pays for this second re-inspection, and why should it be either the seller or the buyer?

It would seem that there would be incredible liability for changing even one word of what the inspector has written. If the deal went south and lawyers got involved, I would have to think that the inspector would just be able to say, “Well that isn’t what I wrote.”

Why would any agent do this—-risk this?

One of the things quite commonly edited-out is who I have recommended to do the repairs. Now, let me first say that I am very careful about whom I recommend to do repairs and do my best to leave as much leeway as possible so as to not create scenarios that would make the process difficult for anyone. For example, some issues, I could care less who makes the repairs—-as long as they are done “properly” and by “qualified” persons. Sometimes I specify that the work be done by a Licensed XYZ—-if I want to improve the likelihood that it will be done properly—-not a guarantee—just raise the odds.

Some things, such as electrical repairs, are generally required to be done by a Licensed Electrical Contractor and require permits. (Sometimes homeowners can do the work if they draw the permits and get the work inspected. This would not likely be applicable in relation to repairs involved with a real estate transaction because these permits are issued under the assumption that the owner is going to live in the home for two years before they can sell the home—-at least in Seattle—I have often wondered how they police this.)

Sometimes what I have written is “rewritten” to ask for repairs to be made by a “qualified repair person”—–even electrical issues. Why would I, when called back to do a re-inspection of electrical repairs, not be expected to see the permit and the work order with the name of the licensed electrical contractor? (Both of which would be required of a “qualified repair person.”)

Why not leave the recommendation as written?

Of course another reason the inspectors recommendations get rewritten is because the inspector can’t write—-and that is an issue that can only be addressed by better education of inspectors and specific training in Inspection Report writing.

Charles Buell, Real Estate Inspections in Seattle

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June 26, 2012 by Charles Buell

Even Mr. Rogers would agree it isn’t “always” a beautiful day in the neighborhood!

Most everyone seems to think that one of the most important qualities a home inspector can have is the ability to communicate their findings to the buyer in a way that both informs them and does not scare them.

I would argue that this can actually be an almost impossible job at times.

We are usually successful, not because of how good we are, but because most of the time most people are reasonable and knowledgeable enough to understand not only what we say but also the implications of what we say. It is when they are not that problems can arise.

Home buying is like reading a book. Some have read the whole book by the time of the inspection, whereas others have left it unopened—-still in its brown wrapper.

All through the home buying process there are many opportunities for the buyer to open that book and learn about what the heck they are doing.

Their agent (and hopefully there is one) can turn a lot of those pages. Looking for house information on the internet can turn some more of those pages. Home-buyer seminars and talking to friends that have bought homes is another way to turn a few more pages. By the time of the inspection, they should be reading the last pages of their home buying book.

The question I have is, “Why wouldn’t a buyer go into the process as informed as possible?” It is almost as if, by the time they get to the inspection, they expect me to read the entire book to them. This is very difficult to do in the context of the inspection—-and within the amount of time allotted to the inspection. Fortunately most buyers are not like this in my experience.

It seems to me that there are some BASIC things that every home buyer should be ready to embrace by the time they get to the inspection process.

Things like:

No house is perfect.
Nothing lasts forever.
Everything can be fixed or replaced.
Rats are everywhere.
Roofs leak.
Wood destroying organisms and mold are everywhere and waiting for a place to happen.
Neighbors happen.
It is your job to decide what “works” for you—-it is not the inspector’s job—-it is not the agent’s job—-it is not your parent’s job.

We all have run across buyers that have not embraced one or more of the things on this list. When they have not embraced any of them, it becomes impossible to predict what will become the proverbial wrench in the gears—-what will set them off.

I think that even the most informed buyers have some particular concern that will spell the end of their interest in the home. And actually there should be some limit—-and knowing what ones limits are can be the sign of having turned the pages in ones home buying book. inspecting houses

On a recent inspection (I knew from past inspections for the buyer that wood destroying insects was a big concern for them) I found myself having to be very patient in explaining exactly what the discovery of wood destroying insects at the property meant—-or might mean to the home. It seemed that every home they looked at had some version of these insects and they were feeling a bit “gun shy.” Through exhaustive communications regarding these various pests, the buyer arrived at a place where they were comfortable with the idea that the critters could be properly dealt with by a Pest Control Operator—-and that the house itself was not in serious danger from these critters.

However, what was “unpredictable” were the critters in the rental house next door. In the short span of about 30 seconds, “ unsavory words were exchanged” with the neighbor and the buyer decided that this was not the neighborhood she wanted her young child to grow up in. So in the end it was not any of the concerns of the property itself that ultimately killed the deal—-but the volatility of a neighbor that may have been having a bad day (or year)—-perhaps becoming the straw that broke the camels back.

It seems like the whole process will always be somewhat predictably unpredictable.

Charles Buell, Real Estate Inspections in Seattle

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May 30, 2012 by Charles Buell

Discounting second…..and third….and fourth inspections…….

I find it a bit odd, and in a way disappointing, when a past client asks for a discount of my fees for the second, third etc inspection I do for them.

I know inspectors that do this. I had one buyer tell me that another inspector they talked to said that if the deal didn’t go through that the inspector would do the next inspection for free. Other inspectors offer 25% or 50% reductions.

Discount inspections I find myself struggling with the math on this, but I end up with more questions than answers.

It seems to me, that anyone that can afford to discount an inspection 50% must in some sense have ripped off the buyer 50% the first time—or the amount of real value they are providing must be pretty minimal.

Am I missing something here?

I guess the whole business of discounts shouldn’t surprise me really, since if you open any newspaper you will find discounts for everything under the sun—-1/2 priced pizza, 20% off your next haircut at Supercuts, or $50.00 off a flight to Las Vegas if you fill out a credit card application.

Even the lingerie adds offer 50% off when it is obvious that there is already a whole lot more than 50% “off.”.

Can you imagine asking your doctor for a 50% discount the next time he treats you for the flu because he had already treated you for it once?

By the time I do an inspection and produce the report, I make somewhere between $40.00 and $60.00 per hour. Most people tell me that this is nowhere near enough given the experience, training and knowledge required to do this job—-let alone the liability. But that is just the facts of life for our fledgling profession where there are tremendous discrepancies of quality, discrepancies in what is expected, and huge differences between individual inspector’s qualifications & experience.

Another thing that occurs to me is that in discounting a subsequent inspection we are in some way taking responsibility for the buyer’s decision to not buy the first one. That somehow it is our “fault.”

For those of us already giving 110% to the process, it would likely not aid in “feeling good” about doing the inspection when you know going in that you are going to get paid even less for it.

I do my best to not be motivated by money or to let the cost of the inspection interfere with how long the inspection takes—-or how long the report takes. The time it takes to do the inspection and produce the report is just what it is. Sometimes you “win” and sometimes they take longer than you planned for. They take whatever they take.

I always give a fair price for the inspection based on the best information I can obtain at the time the inspection is booked. I am by no means the cheapest inspector around. Even with good information we may have to deal with the discovery of things about the house that might have altered that original cost. Most inspectors are justifiably reluctant to change the cost after the inspection has started—-and the price has been agreed upon. It is just part of doing business and one gets pretty good at figuring out what one is getting oneself into. There have been many instances where I wished I could go back to the buyer and say look, “I only quoted you half enough.”

I have started warning buyers that if there are second crawl spaces, second attics etc, the cost of the inspection will be adjusted accordingly. I have never had a buyer balk at this arrangement.

It is always difficult figuring out just what to say when a previous client asks me to do a second one at a discounted price, especially when the second property is bigger, has a detached structure they want inspected, a second crawl space or some other factor that would make it a higher priced inspection to begin with.

The simplest and most direct answer would be “No.” That can be hard to muster and I usually end up elaborating.

When they ask this question are they looking for a “faster” inspection—-a reduction in quality——skipping some components—–or, are they expecting me to just work for free for a percentage of the inspection?

I know it is human nature to haggle over the price of things, and coupled with the fact that most things are overpriced, probably gives people the idea that they should at least ask. While I wouldn’t mind too much discounting $5.00 or $10.00, that kind of number is not usually what the buyer has in mind.

I have taken to explaining it this way: “Since we have worked together on one inspection, you know what goes into the inspection itself. Also, since you have received a report on that inspection and know how many hours it took to produce that detailed report, I think you can understand that to maintain that same level of quality and care I can’t possibly reduce my fee in any meaningful way.”

I have, to date, never lost an inspection with a repeat customer because I wouldn’t lower my fee—which is not to say that I have not reduced my fee. In the early days of inspecting I did a couple of times, and one other time when pressed really hard and I knew the house was going to be a much easier inspection. That said, I have not been asked to lower my fees very many times.

For me, I sleep a lot better having a policy of not discounting my fees—-and I don’t loose my shirt or “lingerie”—-anywhere near 50% of the time.

Charles Buell, Real Estate Inspections in Seattle

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