Presentation Transcript

1. Home Inspections 101 for Real Estate Agents Instructed by FIRSTNAME LASTNAME

2. Course Objective

   To leave you with: A good understanding of the home inspection process Information about how to manage your client’s expectations of the home inspection Information about how to increase your client’s satisfaction and reduce your liability

3. A Home Inspection Completes the Sale

   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.

4. Goals of the Home 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 Home Buyers

   Most buyers know little about construction Answering questions puts their minds at ease Informed buyers are more satisfied and can better anticipate and plan for repairs and maintenance Real estate professionals can focus on the next sale

6. Common Documents Associated With a Home Inspection

   Pre-inspection agreement: Defines the scope of the inspection, standards followed and fee charged Home inspection report: Should be clear and concise and incorporate photos

7. Home Inspection Report Formats

   Home inspection report formats vary: Checklist or narrative Combination checklist and 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 inspection or later

8. Home Inspection Report Basics

   In any case, reports should: Be clear and concise Adhere to the industry standards of practice as per major trade groups (ASHI, NAHI, InterNACHI) Cover all major components Be delivered in a timely fashion (such as within 24 hours) Define terms used therein: (e.g., “acceptable,” “marginal,” “defective,” etc.) Who owns the inspection report? The client.

9. Professional Home Inspector

   Characteristics of a good inspector: Trained, thorough and unbiased Courteous and professional, and has the necessary tools and equipment Has good written and oral communication skills Insured, and, if applicable, licensed

10. Insurance Coverage for Professional Inspectors

    Should carry general liability insurance Should carry E&O insurance Many E&O policies have a “referral” endorsement

11. Inspection Reduces Complaints and Liability

    Chart Provided by FREA

12. What an Inspector SHOULD Do

    Adhere to industry standards of practice and code of ethics (ASHI, NAHI, InterNACHI) Inspect readily accessible systems and components Report: Systems or components that aren’t working properly Recommendations to correct Explanations of the deficiencies Reasons with fact that certain systems or components were not inspected

13. What an Inspector Should NOT Do

    Predict remaining life of systems or components Offer advice on methods, materials, costs to fix components unless qualified to do so Offer to make repairs, refer specific contractors or receive referral fees Comment on market value Perform code inspections
14. Educate the Home Buyer

15. Order a Home Inspection

    Immediately after reaching a written purchase agreement with a home seller Advise the buyer of what to look for in an inspector Advise the buyer where and how to find a good inspector

16. Explain the Scope of the Inspection

    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 the inspection might take, what it will cost and when the home buyer can expect delivery of the inspection report Touches on his/her training, experience and affiliations

17. Set Realistic Expectations

    Very few homes are in perfect condition This sale went through even though the house had severe wind damage because the buyer understood what had happened
18. Preparing the Seller

19. How to Prepare for the 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 that the 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 and Drainage

    Great curb appeal: But the inspector is looking for positive drainage Water is the No. 1 issue with most homes Need positive drainage (slope) on all four sides Most drainage issues are easy to fix

23. Driveway, Walkway and Steps

    Loose or missing handrails (inside or out) are a safety issue Driveways/sidewalks/patios can have tripping hazards: Heaving Differential settlement Excessive gaps

24. Porches, Stoops, Decks, Balconies and Patios

    Ledger board should be bolted to the structure not just nailed. Railing should have proper height and spacing Railings and 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, as well as heave driveways and sidewalks Tree roots can affect foundations, sewer lines, etc. Other vegetation should be kept away from siding, air conditioners, etc.

27. Roofing System

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

28. Chimneys

    Chimneys are a frequent maintenance issue and can be expensive to repair. Inspectors check for: Proper alignment Proper height Flashed properly Lined and capped

29. Siding and 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. Windows and Doors

    Inspect for: Operation Alignment Weather-stripping Evidence of leaks

31. Garages

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

32. Pools, Hot Tubs and Spas

    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 is a must

33. Irrigation System

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

34. Miscellaneous Inspections

    Some inspections might require specialists: Well inspections Septic inspections Potability tests Seawalls, private docks Other: termite, radon, mold, etc.
35. The Inspection Process: Electrical System

36. Electrical System

    Inspectors check for adequacy and safety including: Amperage/voltage Service cable Panel Branch circuits Grounding Wire conductor GFCI, AFCI Smoke detectors

37. GFCI

    Current standards require GFCI protection: Bathrooms All kitchen countertops Unfinished basements Garages Crawl spaces All outside electrical outlets AFCI in bedrooms

38. Smoke Detectors

    National safety standards require smoke detectors Can be battery operated, hard-wired or both Can be monitored by security company Some areas require one outside each bedroom Some areas now require one in each bedroom or living area Inspectors activate test button only
39. The Inspection Process: Mechanical System

40. Plumbing and Fixtures

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

41. Plumbing System

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

42. HVAC System

    Check for adequate heating (gas furnace): 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 Condition of blower/humidifier Heat exchanger (mostly hidden) Check for flue gases and other leaks around exhaust and in supply air Dirty filters obstruct flow and affect temperature rise Thermostat unit responds to controls

43. HVAC System

    Check for adequate cooling: 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 Adequate temperature drop (14 to 22 degrees F) Blower clean and variable speed Dirty filters obstruct flow and affect temperature drop Thermostat unit responds to normal controls
44. The Inspection Process: Interior

45. Kitchen

    Cabinets: Countertops, tile and backsplashes Stoves: Operable burners, not timers Disposal: Inspect for smooth operation, excessive noise Dishwasher: Condition, leaking, proper air-gap device Ventilator: Recirculating or nonrecirculating Other Built-ins: Microwaves, trash compactors, refrigerators

46. Bathrooms

    Can be one of the most expensive areas to replace or refurbish With simple maintenance, expensive repairs can be avoided

47. Walls, Ceilings and Floors

    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
48. Thank you for your time!