Home Inspection 101

1. Home Inspection 101 For Real Estate Professionals Instructed by: (name)

2. Leave you with: A good understanding of the home inspection process How to manage your client’s expectations of the home inspection How to increase your client’s satisfaction and lower your liability. Course Objective

3. Information gathered from an inspection helps bring buyers and sellers together: Information leads to knowledge Knowledge leads to understanding Understanding leads to agreement: Inspectors should understand their role in the sales process. Buyers, sellers and real estate professionals all have a role in the sales process. Inspection Completes The Sale

4. Goals of Inspection • To share unbiased information about major components and safety issues • To discuss repair, maintenance or safety issues beforehand • To move the sale forward

5. Informed Buyers • Most buyers know little about construction • Answering questions puts mind at ease • Informed buyers are better satisfied and can better: anticipate/plan for repairs/maintenance • Real estate professionals can focus on the next sale

6. Pre-inspection agreement: defines scope of inspection, standards used and fee charged Home inspection report: Should be clear, concise and incorporate photos Common Documents Associated with a Home Inspection

7. Formats vary: Checklist or Narrative Combination checklist/narrative Computer generated Handwritten Oral (from a friend-with no report) May or may not include summary May or may not include photos Delivered at time of inspect or later Inspection Report Formats

8. In any case reports should be: Clear and concise Adhere to the standards of practice as per major trade groups (ASHI, NAHI, NACHI) Cover all major components Delivered in a timely fashion Should define terms used therein: (“acceptable,” “marginal,” “defective,” etc.] Who owns the inspection report? Report Basics

9. Characteristics of a Good Inspector: Trained, thorough and unbiased Courteous, professional and has the necessary tools and equipment Adheres to industry standards Has good written/oral communication skills Is insured, and if applicable, licensed Professional Home Inspector

10. Insurance Coverage for Professional Inspector • Should carry General Liability insurance • Should carry E&O insurance • Many E&O policies have a “referral” endorsement

11. Inspection Reduces Complaints/Liability

12. Adhere to industry standards of practice and code of ethics (ASHI, NAHI, NACHI) Inspect readily accessible systems and components Report: Systems/components that aren’t working properly Recommendations to correct Explanation of the deficiencies Reasons with fact that certain systems or components were not inspected What an Inspector Should Do

13. Predict remaining life of system/component Offer advice on methods, materials, costs to fix component - unless qualified to do so Offer to make repairs, refer specific contractors or receive referral fees Comment on market value Perform code inspections What an Inspector Should NOT Do

14. Educate the Buyer

15. Order Home Inspection • Immediately after reaching written purchase agreement with home seller • Advise buyer what to look for in an inspector • Advise buyer where and how to find a good inspector

16. A good inspector: Explains the scope and limitations of an inspection: visual review of readily accessible areas, random sampling of like items, etc. Invites the buyer along for the inspection Explains how long it will take, what it will cost and when they can expect delivery of the inspection report Touches upon their training, experience and affiliations Explain Scope of Inspection

17. Set Realistic Expectations • Very few homes are in perfect condition • This sale went through even though it had severe wind damage, because the buyer better understood what had happened

18. Preparing the Seller

19. How to Prepare for Property Inspection • Secure pets • Turn off alarms • Remove obstructions to: • Furnace and water heater • Electrical panel • Attic • Garage • Crawl space, etc

20. After The Inspection • A good inspector will: • Leave things the way he/she found them • Verify furnace/AC is running and return thermostat to original setting • Turn off lights or running water • Make sure doors are locked, etc.

21. The Inspection Process:Grounds

22. Grading/Drainage • Great curb appeal: But inspector is looking for positive drainage • Water is No. 1 issue in most homes • Need positive drainage on all four sides • Most drainage issues are easy to fix

23. Loose or missing handrails (inside or out) are safety issue Driveway/sidewalk/patios: Heaving Differential settlement Excessive gaps Are tripping hazards but easy to repair Driveway and Walkway/Steps

24. Porches/Stoops, Decks/Balcony and Patio • Ledger board should be bolted to the structure • Railing should have proper height and spacing • Railings/hand railings should be firmly attached • Support posts and stair stringers should have no earth to wood contact • Decks can be expensive, but are fairly easy to repair

25. The Inspection Process:Exterior

26. Exterior • Trees can abrade roofs, heave driveways/sidewalks • Tree roots can affect foundations, sewer lines, etc. • Other vegetation should be kept away from siding, air conditioners, etc.

27. Inspection of roof: Estimate age Number of layers Type of materials Leaking or not? Types of valleys Flashing Roofing System

28. Chimneys • Chimneys are a frequent maintenance issue and can be expensive to repair. • Inspect for: • Proper alignment • Proper height • Flashed property • Lined and capped

29. Siding/Trim • There are many exterior coverings such as: wood, vinyl, stucco, brick, stone and synthetics • Some are more high maintenance than others • Vegetation can affect siding

30. Inspect for: Operation Alignment Weather-stripping Evidence of leaks Windows and Doors

31. Garages • A single garage door such as this one receives a lot of use • Examining the operation, tracks, springs, openers and fit are important • For child safety, “auto reverse” is a must

32. Pools, Hot tubs/Spa • Swimming pools and hot tubs are high maintenance • Could involve filters, skimmers, gas, electric or solar heat, a pool house, etc. • Self-closing gate with a 6-foot-high security fence a must

33. Irrigation • Sprinklers are mostly out of sight, but not out of mind: • Underground leaks/Erosion can greatly impact driveways, sidewalks, etc. • Poorly placed heads can lead to water intrusion in the basement, etc. • In best case, sprinklers are high maintenance.

34. Misc. Inspections • Some inspections might require specialists: • Well inspections • Septic inspections • Potability test • Seawalls, private docks • Other: termite, radon, etc.

35. The Inspection Process:Electrical

36. Inspect for adequacy and safety: Amps/volts Service cable Panel Branch Circuits Grounding Wire Conductor GFI Smoke Detectors Electrical

37. Current Standards Require GFCI protection: GFCI bathrooms GFCI all kitchen countertops GFCI unfinished basements GFCI garages GFCI crawlspaces GFCI all outside electrical outlets GFCI

38. Smoke Detectors • National Safety Standards require smoke detectors • Can be battery operated, hard-wired or both • Can me monitored by security company • Some areas require one outside each bedroom. • Now in some areas in each bedroom/living area. • Inspectors activate test button only

39. The Inspection Process:Other

40. Plumbing/Fixtures • Water No. 1 concern: plumbing and plumbing fixtures are a significant part of the inspection. • Inspector is looking for leaks, adequate flow and pressure. • Also, are drains plugged or sluggish?

41. Plumbing • Plumbing leaks can also damage: • Cabinets/vanities • Behind shower tile • Subfloors, ceilings below, etc.

42. Overall size, age and condition of unit Proper location of unit Adequate combustion air Adequate temperature rise Heat source in each room Condition, size and location of ducts HVAC Check for adequate heating (gas furnace): • Cond. blower/humidifier • Heat Exchanger (mostly hidden) • Exhaust system (check for flue gases and other leaks) • Dirty filters obstruct flow and effect temperature rise • Thermostat-does unit respond to controls

43. Overall size, age and condition of unit Outside unit, clean, level and up off the ground, suction line insulated No obstructions interfering with unit Discharging heat-ambient test HVAC Check for adequate cooling: • Adequate temperature drop (14-22 degrees) • Blower clean and variable speed • Dirty filters obstruct flow and effect temperature drop • Thermostat-unit responds to normal controls

44. The Inspection Process:Interior

45. Cabinets: countertops, tile/backsplashes Stoves: operable burners, not timers Disposal: inspect for smooth operation, excessive noise Dishwasher: condition, leaking, proper air-gap device Ventilator: re-circulating/non Other Built-ins: microwaves, trash compactors, refrigerators Kitchen

46. Bathrooms • Can be most expensive areas to replace/refurbish. • With simple maintenance, expensive repairs can be avoided.

47. Walls, ceilings and floors can be covered by a wide variety of materials Inspector checks for deflection/tolerance in floors, bowing or cracking in walls, cracks, stains or wet spots in ceilings Operation and fit of doors and windows from the inside Walls, Ceilings, Floors

48. Thank You for Your Time!