A Buyer's Guide to Pre-Purchase Inspections
Brought to you as a public service of Status Inspection & Design ®
WHAT IS A PRE-PURCHASE INSPECTION?
A PROFESSIONAL VISUAL EXAMINATION OF A BUILDING'S CONSTRUCTION TO:
-
VERIFY THE NATURE AND CONDITION
OF ITS COMPONENTS ASCERTAIN
THE NEED AND PRIORITY OF
ANY MAJOR REPAIRS
-
SUGGEST WAYS TO REDUCE OPERATING
AND MAINTENANCE COSTS
-
UNCOVER ANY HAZARDS AND SAFETY
CONCERNS
-
INFORM AND FAMILIARIZE
THE PURCHASER WITH THE PROPERTY
-
ASCERTAIN THE NEED AND PRIORITY OF ANY MAJOR REPAIRS AND UPGRADES.
WHY ARE PRE-PURCHASE INSPECTIONS SO IMPORTANT?
THE AVERAGE TIME THAT PURCHASERS LOOK AT A HOUSE BEFORE DECIDING
TO MAKE AN OFFER IS ONLY 17 MINUTES. APART
FROM A NEW HOME WARRANTY,
A BUILDER'S GUARANTEE OR A
CAREFULLY WORDED OFFER, PURCHASER
HAVE MORE
PROTECTION BUYING A TOASTER
THAN A HOME OR OTHER BUILDING.
i.e. 'at least the toaster
will have a guarantee'
See Excerpt from Home Inspections USA
- NO! BASICALLY,
INSPECTIONS PROTECT THE PURCHASER WHILE APPRAISALS PROTECT THE LENDER.
-
APPRAISALS (MORTGAGE LENDING)
ESTABLISH THE FAIR MARKET VALUE OF PROPERTIES.
-
PRE-PURCHASE INSPECTIONS ESTABLISH
A PROPERTY'S PHYSICAL CONSTRUCTION AND CONDITION.
-
APPRAISALS NORMALLY INVOLVE
A 45-60 MINUTE ON-SITE INSPECTION WHILE
PRE-PURCHASE INSPECTIONS
RANGE FROM 2 TO 6 1/2 HOURS OR MORE.
DO ALL HOUSES NEED INSPECTION OR JUST OLDER ONES?
YES, REGARDLESS OF AGE,THE
FINANCIAL INVESTMENT IN BUYING ANY
HOME IS USUALLY CONSIDERABLE.
THERE IS NO GUARANTEE THAT A HOME IS
BETTER
BUILT JUST BECAUSE IT'S NEW OR OF RECENT VINTAGE.
LIKE GOOD INSURANCE, INSPECTIONS
GREATLY REDUCE YOUR RISK, FOR A MINIMAL FEE. THE TWO BIG ADVANTAGES
OF INSPECTING
A NEW HOME ARE:
-
DEFICIENCIES CAN BE CAUGHT
WITHIN THE GUARANTEE PERIOD
-
ITS CONSTRUCTION CAN BE EVALUATED
FOR CONFORMANCE TO
NATIONAL AND LOCAL BUILDING CODE STANDARDS
VENDOR DISCLOSURE FORM OTHERWISE
KNOWN AS PROPERTY CONDITION
DISCLOSURE STATEMENT, IS
NORMALLY PROVIDED AND SIGNED BY THE VENDOR.
HOWEVER, IT IS THE
PURCHASER'S RESPONSIBILITY TO VERIFY
ITS ACCURACY. THE
BROKER ASSUMES NO
RESPONSIBILITY OR LIABILITY FOR THE
ACCURACY OF THE INFORMATION.
UNDER THE WARRANTY "THE BUILDER
WILL REPAIR ALL DEFECTS IN
MATERIALS AND WORKMANSHIP
DURING THE FIRST YEAR OF OWNERSHIP." *
THE WARRANTY WILL THEN PROVIDE
"PROTECTION AGAINST MAJOR
STRUCTURAL DEFECTS DURING
THE FOUR YEARS FOLLOWING, UP TO A
MAXIMUM OF $30,000" *
* Quoted from the Atlantic
New Home Warranty Corporation Pamphlet.
Phone (506)
853-0111
HOW DOES A PRE-PURCHASE INSPECTION PROTECT THE PURCHASER ?
THROUGH THE POWER OF INFORMATION.
ALONG WITH THE POSITIVE ASPECTS,
REPORTS IDENTIFY ANY
MAJOR DEFECTS OR REPAIRS WHICH THE PURCHASER
MAY NOT HAVE BEEN AWARE OF
AND MAY WISH TO CONSIDER. THIS
ALLOWS THE
PURCHASER TO BUDGET FOR THE COST OF REPAIRS ANDUPGRADES OR RE-EVALUATE
HIS
OR HER OFFER.
SIMPLY MAKE YOUR OFFER CONDITIONAL
ON A PRE-PURCHASE INSPECTION BY INCLUDING A
PRE-PURCHASE
INSPECTION CLAUSE IN YOUR OFFER (AGREEMENT OF PURCHASE AND SALE).
FOR SCHEDULING
FLEXIBILITY, YOU SHOULD ALLOW (5) BANKING DAYS (MINIMUM) AFTER THE
ACCEPTANCE
OF THE OFFER , IN WHICH TO HAVE THE INSPECTION DONE, ESPECIALLY IN PEAK
SALES PERIODS.
THE INSPECTOR CO-ORDINATES
THE INSPECTION APPOINTMENT THROUGH
YOUR AGENT, ONCE YOU GIVE
THE GO AHEAD, AS A GENERAL RULE.
STATUS
REPORTS ARE FULLY ILLUSTRATED. OPPOSITE EACH CHECK PAGE THERE'S A PAGE OF
ILLUSTRATIONS SHOWING DETAILS TYPICAL TO THAT SUBJECT.
STATUS
REPORTS ARE CONCISE AND USER-FRIENDLY. THEY
ARE NOT 400 PAGE MAINTENANCE
MANUALS NOR PAGES OF 'CHECKED OFF BOXES'WHICH DON'T ELABORATE. COMMENTS ARE
WRITTEN LONGHAND
IN LAYMAN'S TERMS AND EACH MAJOR COMPONENT OF THEPROPERTY
HAS
ITS OWN CHECKLIST AND CORRESPONDING ILLUSTRATED PAGE.
STATUS
REPORTS ARE THOROUGH. WE
ARE OFTEN ACCUSED OF BEING TOO THOROUGH. HOWEVER,
WE HAVE FOUND THAT CLOSE
SCRUTINY OFTEN REVEALS CONDITIONS OF LARGER CONCERN .
WE DON'T BELIEVE
YOU CAN BE TOO THOROUGH.
STATUS
REPORTS ARE NOT BASED ON RANDOM SAMPLING WE
DON'T JUST INSPECT A FEW DOORS,
A FEW WINDOWS A FEW HEATERS, A FEW RECEPTACLES,
AND SO ON, WE INSPECT THEM ALL. WE
DON'T INSPECT
ROOFS OR CHIMNEYS USING BINOCULARS AS MANY OF OUR COMPETITORS DO.
STATUS
REPORTS ARE SIMPLE TO FOLLOW WE
DON'T USE ANY SPECIAL SYMBOLS OR LANGUAGE THAT
WOULD MAKE IT
DIFFICULT TO UNDERSTAND WHAT IS BEING
SAID IN THE REPORT. OUR REPORTS ARE
CONCISE, GIVING PURCHASERS A
SOLID OVERVIEW OF THE PROPERTY.
WHO PREPARES THE REPORTS FOR STATUS INSPECTION & DESIGN ?
A CERTIFIED ENGINEERING TECHNOLOGIST
WITH OVER 40 YEARS EXPERIENCE
IN THE DESIGN, CONSTRUCTION
AND INSPECTION FIELD AND HAVING DONE MORE
THAN 3000 HOME AND REAL ESTATE
INSPECTIONS DOES ALL INSPECTIONS AND WRITES ALL REPORTS.
HOW LONG DO STATUS INSPECTIONS TAKE?
5 1/2 TO 6 1/2 HOURS IS THE
STANDARD ON-SITE INSPECTION TIME FOR STATUS.
THE STANDARD IN THE INDUSTRY
IS 2 TO 4 HOURS.
AT STATUS, WE DON'T DO "WALK-THROUGHS
"BECAUSE THEY PROVIDE TOO LITTLE PROTECTION
FOR SUCH
A MAJOR INVESTMENT.
CAN YOU BE PRESENT DURING THE INSPECTION ?
YES, PROVIDED THAT THE VENDOR
AGREES TO YOUR PRESENCE, IN ADVANCE. TO
AVOID DIFFICULTIES IT IS
BEST TO DISCUSS YOUR INTENTION WITH YOUR AGENT,
OR IN THE CASE
OF A PRIVATE SALE, WITH THE VENDOR,
BEFOREHAND.
AT STATUS, WE THINK IT'S
A GOOD IDEA TO BE PRESENT DURING PART, IF NOT ALL, OF THE INSPECTION!
WHEN DO YOU RECEIVE THE REPORT FROM STATUS ?
REPORTS ARE PRESENTED ON
THE DAY OF THE INSPECTION. THERE ARE
DEFINITE ADVANTAGES IN HAVING
THE PURCHASER'S AGENT ATTEND THE
PRESENTATION BUT THIS IS
AT THE PURCHASER'S DISCRETION. IF NEED
BE, THE REPORT CAN BE FAXED,
MAILED, E-mailed OR COURIERED TO THE PURCHASER..
"HOW MUCH COULD NOT HAVING AN INSPECTION DONE END UP COSTING YOU?" IS A
BETTER QUESTION. JUST LIKE INSURANCE " YOU DON'T NEED IT TILL YOU NEED IT"
-
ON AVERAGE A 'STATUS' COMPREHENSIVE
PRE-PURCHASE INSPECTIONS
TYPICALLY RANGE FROM $325 TO $500 EXCLUSIVE
OF HST (TAXES)
-
GIVEN THE VALUE OF THE INFORMATION
IN THE REPORT AND THE
MONEY IT CAN SAVE A PURCHASER,
OUR REPORTS PAY FOR THEMSELVES
MANY TIMES OVER..
-
REMEMBER, IT'S NOT THE INSPECTOR'S
FEE THAT PROTECTS YOU, IT'S
THE INSPECTOR'S QUALIFICATIONS
AND EXPERIENCE THAT COUNT.
-
SCRIMPING ON THE INSPECTOR IS
PLAIN STUPID WHEN YOU'RE TRYING
TO PROTECT
SUCH A MAJOR INVESTMENT.
Avoid Price Shopping
6) Avoid Price Shopping: Home inspection fees vary widely. The price of a quality
inspection generally falls between $300 and $400. Lower fees should be regarded with
suspicion, as they often identify those who are new to the business or who do not spend
sufficient time performing the inspection. A home is the most expensive commodity you
are likely to purchase in a lifetime. One defect missed by your inspector could cost
100 times what you save with a bargain inspection. The best method of price shopping
is to shop for quality.
Excerpt quoted from "What should I look for in selecting a Home Inspector?"
http://www.kohles.com/faq/1.0.4.html
Richard Kohles Schneidmiller Realty
924 Northwest Blvd. Coeur d Alene, ID 83814
(208) 665-5234 :(800) 829-2555 x234 : richard@kohles.com
WHAT OTHER TYPES OF INSPECTIONS REPORTS DOES 'STATUS' PROVIDE?
WE OFFER 'BASIX'
REPORTS WHICH COVER THE EIGHT MAJOR COMPONENTS
OF BUILDING CONSTRUCTION
AT LESSER COST. AS WELL, WE OFFER
CUSTOMIZED REPORTS ON SPECIFIC
ITEMS OF CONCERN. i.e. UFFI,
STRUCTURAL, FOUNDATION, CHIMNEY,
FIREPLACES, ETC.
ARE THERE OTHER ADVANTAGES TO USING STATUS INSPECTION & DESIGN ®
TO PREPARE THE INSPECTION
REPORT?
YES , WE OFFER
DRAFTING AND DESIGN, SPECIFICATION WRITING AND AN ESTIMATING
SERVICE
TO COMPLIMENT OUR INSPECTION
SERVICE.
SHOULD THE PURCHASER BE WONDERING
ABOUT THE FEASIBILITY OF A RENOVATION OR NEED
TO KNOW HOW MUCH MAJOR
REPAIRS OR UPGRADES WILL COST, WE CAN PROVIDE THIS INFORMATION
DURING THE
PRESENTATION, AS A RULE.
A
AVOID REFERRALS FROM ANYONE WITH A FINANCIAL
INTEREST IN THE TRANSACTION.
B CONSULT
THE YELLOW PAGES UNDER BUILDING INSPECTION SERVICES
C ASK FRIENDS,
RELATIVES, NEIGHBOURS AND CO-WORKERS FOR REFERRALS.
D ASK EACH
INSPECTOR YOURSELF, ABOUT THEIR TRAINING, QUALIFICATIONS,
CREDENTIALS AND THE YEARS OF EXPERIENCE THEY HAVE IN THE INSPECTION BUSINESS.
E ASK HOW
LONG THEIR ON-SITE INSPECTION TIME IS AND WHAT IS INCLUDED
IN THE INSPECTION REPORT.
F ASK ABOUT
GUARANTEES, BONDING AND LIABILITY INSURANCE.
G SCRIMPING
ON AN INSPECTOR IS FOOLISH WHEN YOU'RE TRYING TO PROTECT
SUCH A MAJOR AMOUNT OF MONEY. PRICE SHOULD BE YOUR LEAST CONSIDERATION.
IT'S NOT THE PRICE DIFFERENCE BUT DIFFERENCE IN QALIFICATIONS AND EXPERIENCE THAT
PROVIDES PROTECTION FOR YOUR INVESTMENT.
PRICES VARY LITTLE.
SHOULD YOU ASK YOUR AGENT FOR REFERRALS TO INSPECTORS?
WHILE AGENTS ARE AMONG THE FIRST PEOPLE THAT PURCHASERS SHOULD CONTACT WHEN
BUYING REAL ESTATE, AGENTS SHOULD NOT BE USED FOR
A SOURCE OF REFERRALS TO INSPECTORS.
WHY?
THERE IS A CONFLICT OF INTEREST
WHEN AN AGENT REFERS HIS OR HER 'PURCHASER CLIENT'
TO INSPECTORS BECAUSE AGENTS NORMALLY EARN THEIR COMMISSIONS BASED ON COMPLETED
SALES. i.e. AGENTS EARN THEIR LIVELIHOOD DIRECTLY OR INDIRECTLY BY FULFILLING THE VENDOR'S
DESIRE/NEED TO SELL.
If you have questions that you feel should be answered and added to this pamphlet,
please send us an e-mail, fax or letter
Pamphlet prepared by
STATUS INSPECTION &DESIGN ®
(506) 461-0549
327 York Street Suite 6, Fredericton, NB
Canada E3B 3P5