How to Hire a Home Inspector

The following is an excerpt from Buying a Home: The Missing Manual. And remember, there are certain things home inspectors don't do -- be sure you know what these are and handle them as needed.

In the movie The Money Pit, a young couple buys what looks like a beautiful home at a bargain price—until the house starts to fall down around them. A home inspector makes sure you don't meet the same fate.

When you tour a home, it's easy to notice the cosmetics—you like the carpet in the living room, but the kitchen cabinets have got to go. But how do you know whether the home's foundation is solid and the central systems (electrical, heating/cooling, plumbing) work the way they should? No matter how well maintained a home appears, it can hide problems that require a trained eye to spot.

A home inspector gives your prospective property a thorough going-over, from roof to foundation, checking the structure and its systems. Chapter 12 shows you what a home inspector does, step by step.

The purchase offer your real estate agents writes up should include a contingency that tells the seller the offer is valid only if you're satisfied with the results of the home inspection. Typically, this contingency gives you 17 days to withdraw your offer or move forward with your purchase: 14 days to conduct a home inspection and 3 days to make your decision. You should interview inspectors and choose the one you want to work with before you make an offer on a house. At busy times of the year or in areas where the real estate market is hot, you may find your preferred home inspector has a waiting list. So find an inspector and call her as soon as your offer is accepted.

Tip: Some sellers have a home inspection done before they put their home on the market. Even in that case, you should still hire a home inspector to look over the property. The couple of hundred dollars you'll spend is worth it to get a second opinion.

As with the other real estate professionals on your team, you should interview home inspectors before you choose one. Ask these questions:

• Are you a full-time home inspector? This isn't a guarantee of competence, but it shows that the inspector is in enough demand to make a living at it and suggests dedication to the job and (perhaps) better availability.

• How long have you been inspecting homes professionally? You want an experienced home inspector, especially one who's familiar with your area and the problems that commonly occur there. Look for one who's been in the business for at least a couple of years.

• Do you have training in home inspections? Many home inspectors have a background in construction, but inspecting homes is a specialized discipline that requires specialized training. It's a good sign if the inspector has taken classes in home inspection.

• Are you a member of any professional associations, and do you have any special certifications? Some of the professional associations for home inspectors are the American Society of Home Inspectors (ASHI), the International Association of Certified Home Inspectors (InterNACHI), and the National Association of Home Inspectors (NAHI). Each of these organizations has standards of practice and a code of ethics that members must follow.

• Do you have up-to-date professional liability insurance? Sometimes called errors and omissions insurance, this policy covers the home inspector in case there's a mistake or oversight in the inspection report. If things go wrong and you end up having to sue the inspector over a faulty report, this insurance means you'll get paid if you win a judgment.

• What does your inspection cover? May I see a sample report? The inspector should assure you that your inspection meets state criteria (if applicable) and complies with the standards of practice and code of ethics of one of the major home inspectors' associations. Look for a report that goes into a lot of detail instead of a quick checklist. 

• How many residential home inspections did you do in this area in the past year? Look for one to two per month at a minimum.

• How long does a typical inspection take? A thorough home inspection takes two to three hours for a single-family home. If the inspector whizzes through it in less time, he may miss problems.

• May I attend the inspection? If you're on site during the inspection, you can ask questions and see potential problems for yourself. If the inspector doesn't want you around, choose someone else.

• How quickly will I get the report after the inspection? Most inspectors deliver a report within 24 hours. And find out how the inspector gets the report to you as well—via email, fax, or in print.

• Can you give me the names and contact information of at least three references? Homeowners know for sure how thorough a home inspection was only after they move in. It's a good idea to talk to previous clients to find out whether the inspector missed something important.

When you get a list of references, check them out. Here are some questions to ask:

• When did you work with the home inspector?
• Did the inspector show up on time and deliver the completed report promptly?
• Did you accompany the inspector? If so, did he explain what he was doing and answer your questions?
• How much time did he spend going over the property?
• Was the home inspection report thorough, easy to understand, and supported with photos and/or documentation?
• Have any problems arisen that the inspector should have pointed out but didn't?
• Would you choose this home inspector again?

Watch out for inspectors who rushed through the inspection or who missed issues that later turned into problems for the buyer.

Comments

[Kevin]

If you are going to call references, try to get references that are 1-2 years old. If the inspector missed something big, like a slow leak, or a heater that was ready to keel over and die during a cold snap, customers who just had their homes inspected won't know.

[chynalemay]

NEW homes need inspections too!

[Arimack]

I made a significant mistake when I hired my home inspector. I took my realtor's suggestion and went with his recommendation for an inspector without interviewing him (funny as I interviewed 4 realtors before I got with mine). Terrible choice and probably the biggest single mistake I made during my recent home purchase (my wife and I were first time buyers.) It is not that the inspector was bad, simply that the report he produced was unusable. We knew better (had seen a similar laundry list on home inspectors as the one above in another homebuying book.) Fortunately for us, our home is relatively new construction and our realtor provided us with detailed notes of the inspection. No major problems but it was a valuable lesson learned for us. The biggest thing, in my opinion, is the sample report. Look for what is written in there. Specifically, think about taking one of the "issues" raised in the sample report you get to a contractor and see if it is descriptive enough so they could identify and fix the problem from the report. This is the level of detail you need in a home inspection. Also ensure the descriptions of location of the problems are specific enough for you to find them six months later. Many problems will not be show stoppers during the purchase but issue you will want to repair yourself in the future. Your memory of the inspection may not be as sharp six months later when you get around to fixing the problem.
Also, consider video taping the inspection if the inspector allows it. This way you are not relying on your memory on these issues.

[Budgeting in the Fun Stuff]

Check out the home thoroughly yourself as well. We made an offer on a house, it was accepted, and we had one week to have it inspected. The home inspector gave it a general seal of approval (lots of tiny stuff), but my mom simply peaked into the attic and found a wall of black mold. We withdrew our offer and ended up finding a very well-built and newish (3 year-old) foreclosure a couple of weeks later. I learned to look over everthing myself since no one else cares about you as much as you do (and parents of course - thanks Mom!). A young (23) and stupid asthmatic almost bought a majorly mold-ridden house...

[Kris]

If only I knew...Back when we bought our last house, we hired an inspector recommended by our realtor. We were already overwhelmed and this was much easier than trying to find our own. Sadly, he missed a few major issues and cost us a bunch of money. We got him to refund most of his fee due to one huge miss, so he was somewhat honest. But a good inspector never would have missed it. Live and learn.