Dirty Little Secrets Of Home Inspections

I fully agree with the article that basically, home inspectors are just as much slugs like mortgage loan officers, real estate agents, appraisers, etc…
The entire home purchasing industry is on par with a used car salesman and you need to approach all of these people with caution. Everyone one of them is out of the highest possible dollar and will collude together to screw the home buyer.

As for home inspectors…I agree with the article in that they have disclaimers that protect them from the entire inspection. I had a home inspector miss major leak damage in an attic, chimney cap defects, and A/C duct work that was disconnected in many areas or rusted completely out. Of course, we you call them on it 3 months after moving in, they refer you to their disclaimer – that surprising enough, refers you to check with experts (I.e. Carpenter, Mason, plumber, electrician, and HVAC technicians).

Now, lets talk about those home appraisers – who are 51% responsible for the run-up in home prices and values over the past 5 years!

You must have had a very bad experience in your dealings with peple in the Real Estate industry. I for one am a Licensed Home Inspector in New York State and have been doing home inspections for the last twenty years No indusrty is perfect and the requirements for a license is the required class and Licensing fee. Whenever you hire someone for a job its always good to inquire on their experience and referrals whether its from friends or the yellow pages..In NY if the Home Inspector carries insurance for the Homebuyer to sue the inspector if he makes a Mistake and the homeowner can recover any damages.Good Luck in your purchase

My husband and I have been performing home inspections for almost 30 years and have the reputation among realtors as “the deal killers”. That being said, we survive on referrals by reputable and smart realtors who themselves survive on referrals. Our business has remained steady while other inspectors have fallen by the wayside due to lack of experience, etc. My husband is also licensed general contractor with 45 years in construction and a straight shooter. Do we have disclaimers? Sure. Buying a house is like buying a used car. Runs great today and won’t start tomorrow. We do not have x ray vision or clairvoyance, but we do the best, most un-biased job that we can. The worst mistake is to buy a property without having it inspected. Buyer beware, and good luck.

Good article. There may be exceptions to the rule and if you are a “deal killer” inspector then good for you. But, for the most part home inspectors collude with agents, are poorly trained, and play gotcha with their contract later on. If you insist on using a home inspector, at least find one on your own who does not work with your realtor or realtor’s company. Contractors should also not be blindly trusted but at least there’s a little more accountability and training. Never ever agree to binding arbitration in advance with anyone. Arbitrations generally favor insurance companies and businesses, and also keep the lawsuit off the public record. (BTW, this goes for other fields as well, i.e. physicians.)

Lastly, sellers should beware that agents are not always intent on getting the highest price. If, as an example, it’s a difference of $10,000.00, the agent’s commission on that difference is minimal and disappears entirely if they lose the sale and have to invest more time in finding a higher bid. Some agents will push through a lower price to be done with the sale and move on as the commission difference to them is nominal to nothing in the end.

After reading some of these comments I have to add my 2 cents worth. I have been doing home inspections for the past 25+ years and have a construction background having built both new and rehabed older homes (not just a paint and dash). According to most national inspection organizations we are not allowed to quote “repair costs” – in this I readily agree since I am not the one doing the repairs. We are there to find toe problems, not tell you how to fix them – get an estimate from a qualified electrician, plumber, etc. before you finalize the offer! If I tell a client that the shower wall is soft and has loose tiles then say “probably 300-400 to repair and a contractor comes in and removes the sheetrock only to find the wall framing totally rotted out it will certainly cost more than the stated repair cost! We can’t see behind walls but we can tell you the wall is damaged and needs repair. Granted, there are many inspectors I would qualify as one of the “quick and easy boys” and they stay busy due to the fact that there are RE agents who constantly referr them since they never make waves during the transaction but I know more agents that want a quality inspection and when the inspection is over they lay all the cards on the table for discussion. There is one “top seller” in my area who used to go out of her way to tell her clients “don’t use him since he is too tough” – guess who they kept calling? She has since quit telling her clients that for some reason but I used to love to see the expression on her face when I drove up!
As for a knowledgable inspector – I know quite a few “new” inspectors and they do a fine job. If they run into something they are not sure about they know that they can call any number of the old timers for advice for a resolution to their question. Our local organizations both encourage this and we “old timers” are more than happy to help them (granted, some are beyond help and fall into the “other” category). The main problem is that you really don’t know if you had a good or bad inspection until you sell the home.
Talking about our LOL clause (Limit of Liability): normally if there was negligence involved then this clause is worth about as much as the ink and paper it was printed on! Everyone I know has the clause in their contract simply because of the fact that many buyers decide after the fact that they either can’t really afford the purchase or just don’t like the home so they try and sue all parties involved. This clause makes them rethink their options – I have never been sued for negligence but have been threatened by disgruntled homeowners that think “they were misled”. The funny thing is that most home buyers really never take the time to read the inspection report we present to them. I can’t count the times I have recieved a call from an upset buyer, pull the report and after scanning it call them back and say something like “turn to page 15, what does it say about half way down?” Silence and then “I didn’t see that”/ I ask “did you read the report as I told you?” Well, no since the home looked fine. Then the inevitable – “Does that mean that you will not help me with the repair costs”? For once I can answer “Correct”.
We are not perfect but most people in this business take pride in their work and are an asset to the home buyer.

None of these comments are secrets nor are they dirty little secrets. I read through the article twice just to make sure I did not misread it. The author apparently has had a bad experience and may in fact have run up on a less than stellar home inspector. I have been inspecting properties for over 15 years and get about 50% of my customers from Realtors but the rest are referrals from previous customers. Unless the author has had many home inspections performed he (or she) is painting ALL home inspectors with the same broad and nasty brush based on a single experience. The information contained in the 3 dirty little secrets have been deliberately slanted and are full of bogus information. It sounds on the surface as if the buyer had nothing whatsoever to do with the selection of the home inspector. It is not a secret that many Realtors know and use home inspectors. All the ones I know and routinely work with are true professionals and talke pride in their chosen profession and do everything they can to put the buyers into the house they want. As for being deal killers. The inspector does not kill the deal, the house does. Too many homes are put on the market without any effort to make it ready to be seen let along sold. Ironlcally, the author also recommends hiring a geneal contractor to do the inspection. I personally know contractors who have never driven a nail in their lives. They are businessmen who hire sub-contractors to do all the work during the construction process. The vast majority of the discrepancies we “home inspectors” find is contractor installed systems and construction work. As far as the secret about not giving out estimates. Licensed Public Adjuster don’t do that either as it is insane to throw out numbers when you don’t know the extent of the damage or what quality material the buyer intends to use. Adjusters use software and have to pay for the costs estimates for the local area every year because the costs of construction is constantly changing and that does not figure in labor. In short, this sounds like sour grapes because the buyer did not do anything to help themselves to select the home inspector, read the pre-inspection report contract (it contains those nasty secrets he spoke of). I would estimate that about half the time the buyers do not even attend the inspection.

I know of a few contractors who found fault where there was none, just to get some work. So how do you protect the consumer from them? Then afterwards when they do a shoddy job and run, who protects the consumer from them?

The common sense approach during a real estate transaction would be to seek the advice of the Professional Home Inspector before that of the Licensed Electrician, Licensed HVAC technician, Licensed Plumber, Roofer, and Structural Engineer etc., Consider the limited amount of time for all of these different trades’ people to be contacted and scheduled, the amount of time to compile their data and write their reports and get them to the client and their agent in time to respond to them before the contingency date of the contract expired. Consider the need for someone specialized in each of these areas to read and explain the variously formatted reports in layman terms to the client, agent and seller…..and then, the fees that would probably range in the (conservative) area of a total of $1500 to $2000 instead of the typical $300 to $500 fee for a home inspection. The economics of the transaction dictate what the consumer gets. In Texas, the Texas Real Estate Commission could write Standards of Practice that dictate an overly detailed and technically exhaustive inspection, but this is not acceptable to Real Estate Agents and their clients (the home buyers and sellers). The consumer is getting what they have demanded; a qualified, competent, well trained and dedicated Professional Home Inspector.

Licensed Texas Real Estate Inspectors and Professional Inspectors Worldwide have proven themselves overall as a group to be trustworthy to consumers as evidenced by their performance in the field and for the value that they provide in return for the minimal cost of an inspection. More and more well-informed home buyers are choosing to hire and consult with inspectors during the home buying process each year.

Mandatory educational requirements, proctored examinations, background checks, continuing education, conformance to industry Standards of Practice and Ethical Codes combine to help safeguard that a consumer is more likely to find and hire a competent and professional inspector, than not. Protect your self interests during the purchase of a home. Understand fully the condition of the home you are going to purchase. Do this with confidence by carefully selecting and hiring the Professional Real Estate Inspector of your choice.

Allow me to respond to your article. I am a state licensed home inspector, in Illinois.

1) I do not rely on Realtor referrals, although some Realtors (and Brokers) use me. Why? Because I am thorough but do not scare the client. The house is as it is and it is my state law required job to report the condition to the client. This is a fiduciary responsibility, in Illinois. Over 60% of my business comes from my web site, not Realtor referrals.

2) As hiring a contractor to do an inspection, this is against the law in Illinois. Contractors, Professional Engineers and even Architects are legally prohibited from doing home inspections unless that are styate licensed home inspectors. Please do not agitate the readers here to break the law.

3) By state law, home inspectors do not give estimates for repair. Also, there is no limitation of liability for home inspectors, at least not in licensed states. Illinois does not require inspectors to carry insurance, but the professionals do (both General Liability AND Errors and Omissions insurance).

You paint with a broad, and uninformed, brush. In the future, please try getting your facts correct.

Hope this helps;

Hey BIGSAM,
I suggest you hire a contractor for every component in your house. I bet you would be willing to spend $5,000 Dollars to have your perfect house inspected by “con” tractors taking one week. Then they will find all the “problems” you think aren’t there.

You need to learn something very important. Even if your furnace is a rusty POS that could kill you, the inspector cannot take it apart as YOU think to find all the “problems”.. Why? they are not allowed too. The furnace is tested by “using normal operating controls and opening readily accessible access panels”.. Illinois State SOP. Five minutes to find a cracked heat exchanger.!! HAH You probably got ripped off!

The heat exchanger is NOT readily accessible. If it works then your lawyer, sellers lawyer argue about the $$$. That’s all. The world of real estate is very far from perfect. You will pay in some shape, manner or form. It maybe be now or later.
Your probably the type of guy that complains about the cost of owning a house or fixing something or hiring a contractor to begin with. I suggest you call for service on anything broken in your house. What did that HVAC service call cost you? $150 bucks just to come out! To paint home buyer as thousands of victims of home inspectors is as wrong as me calling you STUPID!

Harry, the guy who came to clean my furnace charged me nothing. Said he was sorry, but he couldn’t clean it because it couldn’t be repaired and was amazed my home inspector hadn’t caught this.

And if you’re saying that “Illinois State SOP” for home inspectors isn’t going to find something as basic as a bad furnace, then you’ve just made my point. Home inspections don’t find even basic problems.

And you know what I find interesting. This post has been up for more than a week now, and a bunch of home inspectors have rushed to say what a great job they do. But not a single home buyer has come forward with their story about how a home inspector saved them from a terrible mistake. Or pointed out a big, potential expense they hadn’t seen.

Why might that be? I know lots of homeowners who have lots stories about things home inspectors missed. I don’t think I’ve heard a single one about a home inspector who found the big surprise.

As a home inspector in the stae of ohio and by our code of ethics . we are not allowed to give estimates of repairs . that is conflict of interest . # 2 I would rather have Realestate agents and companies give a list of inspectors names in the area and not just hand my name out . because the liability to them is none that way . # 3 most general contractors unless they are involved with the whole building process and do the total construction from the ground up . Are not equiped or trained to look at the defects . as home inspectors we are trained in all areas to locate and to disclose those defects. As far as recommending repairs . when you take a photo and the photo shows the badly decayed rotted floor joist its only normal to assume yep that needs repaired . The key here is to point them to the general area of hiring a contractor to estimate and repair . When a general contractor who is not trained in home inspections, do inspections they are only into doing them so they can trump up expand the problem and get the money for them selves . I like inspecting them and then refering to my clients to choose a contractor and get the proper estimates and repairs made . Most contractors I know here in the are when they are busy dont have time to inspect homes But are glad when A client I point in their general direction hires or calls them for estimates and repairs . then When a contractor knows some one who is buying a home or looking to buy . says hey you need to call mr . homey inspector . then gives ythem my card or other inspectors cards . then we are all happy . Cant we all just get along and respect each others profession Thanks And God Bless john 3 : 16

To all that read this ridiculous article, DON’T BUY IT! A home inspection is the best consumer protection service available today. Hiring a contractor to inspect your home? Really? Where do you think the contractors allegiance lie? Get real, it is for one a serious conflict of interest to have someone inspect your home, only to give you quotes on repairs. Where does the home inspectors allegiance lie? With the buyer and no one else! What does the home inspector have to gain by pointing out defects to you? That’s his or hers job! That is what we get paid to do. Sure there are good and bad in every profession. The vast majority of home inspectors are honest hard working people just like anyone else. This bologna about Realtor referrals is hogwash! It used to be a problem back 10-15 years ago, but things have changed considerably in this business. The key is education. How many of you truly know what a home inspector has to go through to become certified and licensed. If you truly knew, there would be no question as to where our allegiances lie. We serve the public and offer the best bang for your dollar in learning every aspect of your home, both good and bad. If you have had a bad experience with a home inspector, you obviously did not do your homework prior to choosing one.

There is conflicting information that can be confusing. First of all, if someone is actually knowledgable enough to perform a thorough home inspection, they are very limited in what they can report to the client. There are standard reporting procedures that are very limiting. For instance, they will make a comment about a leaky faucet, however, if they find a giant termite infestation, they are only alowed to “recommend you engage the services of a qualified pest control contractor.” 90% of the inspections are a feel good thing.

But here’s the real scoop on the industry (at least in Texas). The process for obtaining a license requires you be sponsored by a “professional inspector.” That sounds great, right? When you are an apprentice, you contact a professional to sponsor you and they want $5,000 minimuim up front. For that, they simply put their initials on your inspection reports until you perform enough inspections to become a “professional inspector” yourself.

Most of the inspectors out there have no idea what the heck they are looking at. They have either bribed their way to a license or have a friend or relative who lied for them in order to obtain their license. It is so crooked an industry you can not even to begin to imagine. They are slimeball slugs.

CrankySaver (Author of this story),

When are you gonna post a piece about the “Dirty Little Secrets of the Mortgage Industry”?