Home Inspections Confuse Home Buyers
ARDELL on 09 26, 2010
While you might think that the Escrow Process is the most confusing part of buying a home for a buyer, it apparently is not as confusing as the Home Inspection negotiation process.
I know this because more people google topics regarding the Home Inspection than most any other topic involved in the home buying process.
It’s probably not the inspection as much as it is a lack of general understanding of the components of a home. How much things cost to replace. Which things in the inspection are important things that seem small…or unimportant things that seem huge.
I have actually seen a homebuyer be more concerned about a rat dropping in an attic than a $20,000 rotted deck. I don’t think there’s a house on the planet that is built such that a mouse or even a rat couldn’t squeeze his way into an attic or a garage. A rodent in a house is not a “defect of the home”. It’s creepy…but it happens and can happen to most any house. How much does it cost to catch a rodent and get rid of it? A whole lot less than it costs to fix or replace a rotted deck.
And why don’t home inspections include rotted fences? Who said? Who said it doesn’t include the rotted fence? Do you know how much it costs to put up a new fence!? A whole lot more than it costs to fix that vent over the stove that pulled out of whack.
While the buyer might be in charge of hiring the home inspector…the real estate industry AND the home inspection industry have stacked the deck against the buyer in many different ways. Inspectors don’t have to report some of the worst hazards a home can have: Lead Based Paint, Asbestos, Mold…unless it is obviously visible on an exterior surface, water penetration issues…on and on.
Even expensive cosmetic items are not included. The whole wood floor could need refinishing because of sun bleached areas, but no…it’s not a “defect” because it is “cosmetic” even though it costs TEN times more to fix than that GFI.
The good news is you can cancel on inspection regardless of whether or not the item you don’t like is in the report. You don’t have to PROVE that the Home Inspector noted the item you want to cancel on. But you do have to know it is there.
So when you see a popcorn ceiling, take it as a given that it has asbestos…some don’t, but most do, especially those put in prior to 1990.
If you are buying a house built prior to 1978…you can pretty much assume it has lead based paint somewhere, especially if you are buying a charming older home in Seattle built prior to 1930. Since Lead Based paint was used in almost ALL paint prior to 1978…you probably have layers and layers of lead based paint on each and every painted surface. The walls…the ceilings…the window sills, the window frames and the doors and door jams…uh…baseboards, pantry shelves, linen closet shelves…on and on and on.
But don’t expect to see that in your home inspection report. It won’t be there. 
About the Author: Ardell DellaLoggia
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6 Responses to “Home Inspections Confuse Home Buyers”
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There is a wide variety when it comes to professional home inspectors and the quality of the reports that they present to their clients. Home buyers often treat these reports as a firm list of items that must be fixed by the seller because they were noted “defects” with the home. Yes, the drama begins.
To add to the confusion, some home inspectors have not incorporated digital cameras to document issues that they are writing down in their reports. Home Inspection Reports with happy and sad faces are not worth much, but a report with clear, digital photos of “rat droppings in the attic” paints a clear picture of the problem.
A good home inspector should be able to look at the buyer and say, “this is common in homes built in the 1950’s so it isn’t unusual to find…” to eliminate confusion. I always prep my clients telling them it will be the most informational three hours they’ll spend in their house, looking at the appliances, systems like plumbing and electrical, the roof and windows, and much more. And especially making sure there is hot water for a shower.
My strong suggestion is to make sure that your home inspector will be using a digital camera.
“this is common in homes built in the 1950’s so it isn’t unusual to find…” to eliminate confusion.
Doug…just because it is common, does not mean it is acceptable. If you’ll excuse me for saying so…that kind of thinking is a bit old fashioned. Just because everyone in the neighborhood has a wet basement is no reason why “this” buyer of “this” house should be made to feel “confused” if he doesn’t want a house with a wet basement.
Lots of houses built in the 50s have tree roots growing into the sewer pipe. It’s not unusual to find that, in fact that it us “usual” is why you need to have a sewer scope. That all houses built at that time have this problem is really of no importance to the buyer who is buying this particular home.
I think home buyer’s deserve a home inspector who is going to take the time to explain things or answer the buyer’s questions about the house. And, if there is a problem, to take the time to explain that too and how it can be repaired, and who they should talk to. It may be old fashion, but having an inspector who doesn’t take the time to explain things opens the door to too much confusion.
Having the inspector explain what a “hot electrical outlet” is and how an electrician can repair it can be a relief to a first time buyer.
Not following you, Doug. Why would a buyer need to know how an electrician can repair it, if they just want the seller to repair it and maybe have the inspector come back to check that it was repaired properly?
Maybe I’m not understanding you, but it sounds like you want the buyer to assume responsibility for the problem. That’s the part I think is “old fashioned”. The part where a buyer is told “it’s no big deal” as if they are expected to overlook it.
As to “and who they should talk to”, inspectors usually don’t do fixes or recommend people who do. It’s considered a conflict of interest…generally speaking.
I don’t think it is old fashion to write on an addendum that the repair is to be done by a licensed electrician. Buyers who don’t understand that a licensed electrician should perform this work and simply say “fix it” leave it up to the seller to decide who is going to do it.
It is absolutely the buyer’s responsibility to state on the home inspection addendum to the seller that a licensed electrician is going to do that work, otherwise it is unsatisfactory.
Doug,
I have seen a few sales fail (not mine) from an agent putting a list of only licensed professionals vs a good and reliable handyman attending to a long list of minor repairs. Simple handyman stuff like GFIs added, a piece of rotted eave being fixed, etc…
So no…I don’t agree that all repairs need a contractor or an electrician. A buyer insisting that only the top high end contractors deal with minor repair items, vs a handyman, can be unreasonable.
One of the most extreme cases I saw (and yes the sale failed) was a small branch hanging near to the roof and the buyer wanting a licensed arborist to trim off about 6 inches of that branch. Of course that was the straw that broke the camel’s back…there were many other minor repairs and as a matter of policy, the agent insisted all of them be done by top dollar specialists.