Inspections You Can Trust

Home Inspection 101For Real Estate Professionals

Presented by Global Property Inspectionswww.gpiweb.ca

This course will leave you with the following:

• 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

Information gathered from an inspection helps bring together buyers and sellers.

• 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

• To share unbiased information about major components and safety issues

• To discuss repair, maintenance or safety issues beforehand

• To move the sale forward

Goals of Inspection

• Most buyers know little about construction

• Answering questions puts mind at ease

• Informed buyers are better satisfied and can better anticipate and plan for repairs and maintenance

• Real estate professionals can focus on the next sale

Informed Buyers

• Preinspection agreement: Defines scope of inspection, standards used and fee charged

• Home inspection report: Should be clear and concise, and incorporate photos

Common Documents Associated With a Home Inspection

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

Inspection Report Formats

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• Be delivered in a timely fashion• Define terms used therein: “acceptable,” “marginal,”

“defective,” etc.

Who owns the inspection report?

Report Basics

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 and oral communication skills• Is insured and, if applicable, licensed

Professional Home Inspector

• Should carry general liability insurance

• Should carry E&O insurance

• Many E&O policies have a

“referral” endorsement

Insurance Coverage for a Professional Inspector

Inspection Reduces Complaints/Liability

0%

10%

20%

30%

40%

50%

10 Most Common Areas that Result in Liability (by percentage)

StructureRoofWater IntrusionHVACInteriorPlumbingPoolExteriorAppliancesElectricalOther

Source: FREA

• 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

• Predict remaining life of system or 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

Educate the Buyer

• 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

Order the Home 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 will take, what it will cost and when

the client can expect delivery of the inspection report

• Discusses their training, experience and affiliations

Explain the Scope of the Inspection

• 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

Set Realistic Expectations

Preparing the Seller

• Secure pets• Turn off alarms• Remove obstructions to:

• Furnace and water heater• Electrical panel• Attic• Garage• Crawl space, etc.

How to Prepare for a Property 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.

After the Inspection

The Inspection Process: Grounds

• Great curb appeal, but the inspector is looking for positive drainage

• Water is the No. 1 issue in most homes

• Need positive drainage on all four sides of the house

• Most drainage issues are easy to fix

Grading and Drainage

• Loose or missing handrails

(inside/outside) are a

safety issue

• Driveway/sidewalk/patios:

• Heaving

• Differential settlement

• Excessive gaps

• Are tripping hazards but

easy to repair

Driveway, Walkway and Steps

• 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

Porches, Stoops, Decks, Balconies, Patios

The Inspection Process: Exterior

• Trees can abrade roofs, heave driveways and sidewalks

• Tree roots can affect foundations, sewer lines, etc.

• Other vegetation should be kept away from siding, air conditioners, etc.

Exterior

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

Roofing System

• Chimneys are a frequent maintenance issue and can be expensive to repair.

• Inspect for:• Proper alignment• Proper height• Flashed property• Lined and capped

Chimneys

• There are many exterior coverings, including wood, vinyl, stucco, brick, stone and synthetics

• Some are more high-maintenance than others

• Vegetation can affect siding

Siding and Trim

Inspect for:

• Operation

• Alignment

• Weather stripping

• Evidence of leaks

Windows and Doors

• 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

Garages

• Swimming pools and hot tubs are high-maintenance

• Could involve filters, skimmers, gas, electric or solar heat, a pool house, etc.

• Must have a self-closing gate with a 6-foot-high security fence

Pools, Hot Tubs and Spas

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 the best case, sprinklers are high maintenance.

Irrigation Systems

Some inspections might require specialists: • Well inspections• Septic inspections• Water potability tests• Seawalls, private docks• Other: Termite, radon, mold,

etc.

Miscellaneous Inspections

The Inspection Process: Electrical

Inspect for adequacy and safety:• Amperage/voltage• Service cable• Panel• Branch circuits• Grounding• Wire conductor• GFCI• Smoke detectors

Electrical

Current standards require GFCI protection:• GFCI bathrooms• GFCI all kitchen countertops• GFCI unfinished basements• GFCI garages• GFCI crawl spaces• GFCI all outside electrical outlets• AFCI in bedrooms

GFCI

• National safety standards require smoke detectors

• Can be battery-operated, hard-wired or both

• Can be monitored by a security company

• Some areas require one outside each bedroom

• Now in some areas they are in each bedroom and living area

• Inspectors activate test button only

Smoke Detectors

The Inspection Process: Other

• Water is the No. 1 concern:

plumbing; plumbing fixtures are

a significant part of inspection

• Inspector is looking for leaks,

adequate flow and pressure.

• Are drains plugged or

sluggish?

Plumbing and Fixtures

Plumbing leaks can

also damage:

• Cabinets and vanities

• Wall behind shower tile

• Subfloors, ceilings below

Plumbing

• 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)• Exhaust system (check for flue

gases and other leaks)• Dirty filters obstruct flow and

affect temperature rise

• Thermostat — unit responds to normal controls

HVAC System

Check for adequate heating (gas furnace):

• 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)

• Blower clean and variable speed• Dirty filters obstruct flow and affect

temperature drop• Thermostat — unit responds to

normal controls

HVAC System

Check for adequate cooling:

The Inspection Process: Interior

• Cabinets: Countertops, tile and backsplashes

• Stove: Operable burners, not timers• Disposal: Inspect for smooth

operation, excessive noise• Dishwasher: condition, leaking,

proper air-gap device• Ventilator:

Recirculating/noncirculating• Other Built-ins: Microwave, trash

compactor, refrigerator, etc.

Kitchen

• Can be most expensive areas to replace/refurbish

• With simple maintenance, expensive repairs can be avoided

Bathrooms

• 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 and Floors

Thank you for your time!

For more information or to schedule a presentation for your real estate office, contact your local Global Property Inspections franchise owner. Visit www.gpiweb.ca/FindAnInspector to find your local franchise owner/inspector.