Saving Money Through Inspections

Preach on !!!! Saved a client a crap load of money on a foreclosure with an inspection. The property had been in a fire (and I know the listing agent and seller knew it) it was minor, but beat the snot out of them for trying to hide it. My inspector spotted a little soot on the window sill and gave me all the ammo I needed to go to work.

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My hubby can do the inspections, but we are still hiring it for a second pair of eyes.

My aunt had a home inspection done for no reason, and she was very glad she did. She found out her house was almost unsellable, because it was unlevel by 4 inches! Hubby fixed it for her for 1/2 the price, just labor and materials. Yes, he shopped those materials to find the best prices. Worth every penny!

I.....uhh...didn't get a formal inspection when I bought in March. I had friends look at it. So far the only significant issue was the broken main sewer line, cost 1250 to replace. Somehow its distressed state went unmentioned. On the other paw, when I do have tradesmen here, including one who restores houses, they LOVE my house! It's very small but completely adorable. Plus it has oodles of charm. Big, ugly McMansions built with synethetic materials can't touch my house. :)

I like small, well built homes. We have a lot of arts and crafts style bungalows here, built to last. I love 'em.

Mine was built in 49. 834 sq feet. hardwoods, wide baseboards, plaster walls. My favorite part of the house is the attic - it was finished. I even have hardwood floors up there ! It's like a dollhouse up there, especially. I remember when I first saw it from the outside, I thought there was no way I could afford it.. it really just catches the eye. 

Of course, over time I have a lot of work to do here, but I don't mind.

By the way, I've always wanted to visit Savannah! I love the pictures I've seen of it.

Savannah is a beautiful city with lots of history. I walk arond each day admiring the architecture. A hobby of mine is figuring out the style influences, Italianate, Georgian, Queen Anne, etc.

And which is your fav?

My favorite is the Georgian, and its close cousin, English Adam.

The Queen Anne and Richardsonian are the most interesting, but a little too ornate for my tastes.

"So far the only significant issue was the broken main sewer line, cost 1250 to replace. Somehow its distressed state went unmentioned."

Tough to know when to recommend cameraing the sewer line - ideally, if a client wants to  obtain the maxium informaton about a property, and the maximum ability to accuratly budget for maintience, I would recommend it at every house more than 20 years old, and in my inspection area (Chicago) you would likely see low spots, broken or displaced tiles or root obstructions at least half the time on older homes.

The problem is: then what? Most of these sewers are will have satisfactory "functional drainage" at the time of inspection, and many will operate "satisfactorily" for years to come with occasional roding.

So unless running the camera down the line reveals something really dramatic (for example, a collapsing section) it's not clear that the effort has provided much useful information to the client, except perhaps in the a negative sense that in some cases the plumber can say "the line appears to be in good condition, with no signs of imminent failure".

So I give client the option, and explain it this way:

"It's a gamble, and your choice: if you want to be certain if there is a major problem with the sewer line you pay the plumber $200 on the small relatively small chance that you will discover a realitivly major problem, and that if so the seller will be willing to negotiate, or that you will use the information or budget for the repairs, or you walk away from the contract if the seller will not have the serer repaired or give you a credit to do so."

I think about inpections a lot. I didn't get my first home inspected and while nothing tragic happened I did end up paying for it.

Any tips on inpections for homes that are 70+ years old? A lot of the housing stock around here is pre-war, built from 1900 to 1935 or so. I love these old houses, but I'd like to avoid buying a money pit.

I recommend getting an inspector certified through ashii who has experience with older homes. The obvious things, of course, are:

Structure

plumbing

electrical

roof

energy efficiency

wood rot

pier support if off-ground foundation

But one thing to ask the inspector to check is load bearing walls. The older homes here in savannah have been renovated many times, and one thing amateurs do, sometimes, is knock out a wall to create open space. The inspector may not find current structural problems, but if walls have been taken out that are load bearing, the likelihood of having structural is great.

Micahel,

This line was in TERRIBLE shape. It really was. They discovered that the line hadn't been laid properly in the first place. And then there was a pine tree root that tunneled under the pipe and pushed it up, causing a break. Between March and July, I had the plumbers out three times to clean it out.

BUT - I had the fun of seeing into the trenches. I was disappointed that it was all dirt, but it was fun to look into. I felt so bad for the guys though. It was August, during that really horrible heat. I brought them some cold water and Gatorade at lunch.

There are so many things to check, mina, it really does pay to have a good inspector. Sorry for you troubles. I bet they appreciated the cool drink.

I really should have paid for an inspection. But you know, I would have bought the house anyway. I would have assumed I had time to deal with it. And since the seller paid the closing costs, I wouldn't have been able to use that to negotiate with. (at least I don't think so. Seems greedy to me to have done that. Not ALL buyers want to scavenge off the bones of the seller.)

Well, it may be different in different areas, but here sellers are taught to expect a repair negotiation period, especially items that relate to systems and structure. It is factored into the list price often, if the seller is aware of certain problems. Fluff, is what i call it -- add a few thousand to the price to negotiate on repairs.

ah. Well... my entire house price was only 67,500. Some days, when I read of what most people are selling/buying for here, I feel VERY out of place on zillow.

On the subject of inspections: IMHO never trust the person suggesting an inspector that depends on the deal coming to fruition, ALWAYS hire an independent inspector. The most important person you hire in the purchase of RE, besides your attorney, is your inspector. REAs call them deal breakers for a reason. A good one will prevent you from making a terrible mistake.

Oh man, I could go on for hours about this. I see these in Evanston, Wilmette, Winnetka, if you know the area, and of course Chicago, on the average they are considerably tougher to inspect than newer constrcton. A few things to watch at that age: They are likely to contain at least some asbestos: pipe insulation, floor tiles, Tanasite vent pipes and the like - you have to be able to spot this stuff and them put it in perspective for clients. In my area there have been conversions from oil heat and you need to watch for decommissioned underground tanks, at  "mansion" type properties there may also be abandoned gasoline tanks.  There are likely to be mature trees on the property, you need to watch for foundation problems and recommend a video inspection of the sewer line to the street (the sewer lateral). There often will have been multiple upgrades of electrical, plumbing and HVAC systems, you need to look carefully at all of this. But in my area the big enemy of older homes is water: often these older homes have multiple roof planes with roof-to-roof and roof-to-wall junctions, added dormers, roof junctions at additions, and the like, you have to evaluate all of this from the outside, think carefully about likely areas of water penetrating, and be very through in your inspection of these areas, especially in the attic.
 

I think it must be very satisfying to do home inspections, if you really know your field. You get to poke into every corner and see what is what. :)

BTW, there is a typo above, it should be “Transite vent pipes”

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"I think it must be very satisfying to do home inspections, if you really know your field. You get to poke into every corner and see what is what. :)"

It’s an interesting job – you never stop learning, you can have inspected thousands of houses and still encounter new construction techniques, materials and problems every day. People are endlessly inventive in discovering new ways to “fix” things or use materials in novel ways,  and the home inspector discussion sites are full of  pictures of the results.

You are also constantly learning to spot additional problems that can have a very real safety or financial impact on your clients and their families. For exempt yesterday an inspector  looking at a picture someone had posted while asking a question about a gas line in a garage pointed out that there was a screen door installed nearby, and that screen door  should never be installed between a house and an attached garage because it comprises the fire rated door installed there to if the owners leave the door open so air can flow through the screen. (And why else would they have installed a screen door there?)

Sees there is a limit to post lenght, had to break this in half:

I watch for a number of other ways the door can be compromised (for example, by a pet door),  but I’d never encountered that one. Now that it’s been now been pointed out, it’s added to  the list of literally thousands of things I watch for when I go through a property.

The really tough part of the job – assuming you have reached the skill and experience level where it’s highly unlikely you will overlook really significant defects - is to figure out how to communicate the what you discover in a way your clients – who will vary wildly in their interest in understanding your observations  and in their ability to understand your comments – can understand and use. 

That’s why I think it potentially very valuable for inspectors to read client comments in venues such as this one; discovering what homeowners believe their inspectors overlooked or explained poorly is IMO one of the best ways for inspectors to sharpen their abilities to communicate their findings effectively. For example, the sewer line problem above  has got me thinking, again, about how I explain to clients that they have the option of a video sewer  inspection, and the pros and cons of having it done.

All I can say is.. it's REALLY nice knowing my sewer line is going to drain without having to stand there and pray over it. :)

My home warranty is coming up for renewal in March. (Old Republic). I'm pretty sure I'm going to get it renewed, but I'd like to hear your thoughts on them. My systems are old - heat pump, water heater, between 11-13 yrs old.

I have had mixed experiences with home warranties, but Old Republic seems to be one of the best. The cost to renew is minimal compared to potential uncovered costs in an old house.

Just make sure if you have a problem, you call them before doing anything or have anyone else look at it. Read all the fine print and pay a little extra for add-ons if you think they are critical.

It's interesting.. wanted my own home for years. I was prepared to make the payments - they auto draft right out, no problems at all. I WASN'T prepared for the anxiety of being solely responsible for everything that goes wrong. I'm adjusting, but it's been a slow process. The HW just helps to control my anxiety, which was very fierce over the summer due to the sewer line problem.

Mike,

As a home inspector, I appreciate your outlook on the inspection process. Unfortunately, I have worked with some buyers agents that were only concerned about completing the deal.  They do not want to accept the findings of a detailed inspection.  When I work with agents like yourself, I certainly enjoy my work a little more!  Just a side note, there are some very good inspectors that are not ASHI members, please consider NAHI and/or NACHI members.

Yes, John, you are correct _ I actually meant certification in a general sense, not specifically, ASHI -- I am just more familiar with ASHI.

I have found my professional life is much easier and stress free by having everything above board. I want buyers to be fully informed. To me, it's the only way to do long term business based on referrals from satisfied clients.

Re: Home warranties, one thing to check as you have some older components: some warranties don't cover items such as furnaces, boilers and A/C compressors if there are 10 years old or older, and some require yearly service/inspection to remain in effect.

Mine is Old Home Republic. I just called them.. they cover systems regardless of age. And I am planning on getting a maintenance contract on the heat pump thingie.

Ok, I know this will sound strange but I took pix of the underside of my house today. I was very excited - it looks good under there. Wood looks very solid, good support ( to me). And I definitely have copper pipes. I plan to show them to someone who actually knows what they are looking at to give me an opinion on it.

By the way.. insulation... do you have an opinion on the best order of projects? Underfloor, walls, windows and attic. What order would you put them in ?

Let me ask - is it acceptable to forego an inspection on a brand new house??  I think I would get the water tested, but we are thinking of skipping the rest of the inspection.