Are Your Home Inspections Worth The Paper They Are Printed On? | Part I

Anyone remember the phrase GIGO – garbage in, garbage out?! Even if you weren’t a 90’s computer science geek, you can probably conclude that we are talking about the concept that the data you derive from a computation is only as good as the data that goes into it. This same concept holds very true and remarkably similar in the home inspection process, and you might be surprised that the standards and certifications for inspections are as clear as mud! In today’s post, we’ll summarize why comprehensive, quality inspections are so vital to buyers and sellers. Next week, we'll take it one step farther in Part II and reveal what five things you should look for in evaluating the accuracy of the reports that you receive.

THE DIFFERENCE BETWEEN DISCLOSURES & INSPECTIONS

When you express interest in a home and request 'disclosures', you will receive two types of documentation: mandated disclosures and selected inspections. Disclosures are fill-in-the-blank and yes/no forms in which the seller discloses their information of the home to the best of their knowledge. Inspections are third party reports on various components of the home in which the seller (or agent) has paid for as a service to the buyer.

You may choose to corroborate the facts on the mandated disclosures by checking online permit records with the local municipality. Depending on the quality and type of the supplied inspections, buyers may wish to hire their own inspectors or seek additional specialty ones to fill in the blanks, so to speak.

BUYERS

This one’s easy, right? Proper disclosure and quality inspections help a buyer understand the current condition of the home at hand, the prior history of care and maintenance as well as the short and long term costs that you can predict (while keeping in mind those that you can’t). No one wants to bite off more than they can chew, especially when your hard-earned money is consuming your biggest investment.

SELLERS

The pride of ownership often comes with passing along your home’s accolades to their next owner. Most sellers are pretty excited to disclose those dual pane windows, electrical upgrades and recent reovations. But that moldy spot in the hall bath, the roof that is about 6 years from the end of its life – this is the ‘dull’ stuff… While the state, city and county require certain disclosures (those many forms your agent gives you to complete and sign), the inspection types and service providers are seller choice. While selecting the cheapest, simplest and fastest formats might be easiest upfront – these so-called shortcuts might cost more in the end (such as a new buyer, a value issue or unreparable lack of trust in the transaction).

A SIDE NOTE: Did you know that disclosures offer more than perspective of the home…but also of the agent? A real estate agent who advocates for cheap and fast roof inspections, fly by night termite companies and ‘circle the score’ home inspections might be looking to manage your transaction the same way. Think about it. The more seriously they take the condition of your home, the more serious they are taking the impact to your livelihood. Just a thought…

Check back next week for the ‘5 Quality Control Questions’ that we recommend to make sure your reports really ARE worth the paper they are printed on – and more!

Mark & Jason

team@homesofsv.com

408-596-5526

Resources Used:

Checklist For Home Inspections: https://www.thebalance.com/checklist-for-home-inspections-1798682

5 Things You Need to Know About Real Estate Disclosures: http://www.zillow.com/blog/real-estate-disclosures-62807/

What Types of Home Inspections Can a Buyer Do?: https://www.thebalance.com/what-types-of-home-inspections-can-a-buyer-do-1798675