New Jersey home inspector answers a few home inspection questions for potential clients.
Can a home fail a home inspection?
No. The home cannot fail a home inspection. A Home inspection is a comprehensive evaluation of the home that a client is considering purchasing. The findings of a home inspection are for the client only. The client uses the home inspection and report to make decisions about whether or not to purchase the home or to ask for credits or corrections for the deficiencies that are found during the home inspection. There is no pass or fail, the purpose of the home inspection is to provide the client information only. It is not the NJ home inspectors job to tell the client not to purchase the home or in that opposite case to purchase the home. The job of the home inspector is to provide the client useful information so they can make their own decisions. There is no framework to pass or fail a house.
Can home inspectors make repairs on homes that they have inspected?
No. Home inspectors cannot make repairs on homes that they have inspected. There is an inherent conflict of interest in this. A New Jersey home inspector cannot find deficiencies in the home and then later tell the client that he or she can correct those deficiencies for a fee. Having home inspectors perform work in home muddies the water in terms of keeping the home inspector conflict of interest free. If the home inspector is also in the repair business, he or she may exaggerate or embellish on problems so they can get the repair business and that would be morally and ethically wrong. The New Jersey regulations stipulate that home inspectors cannot perform service or repair work on homes that they inspect.
Are all home inspection reports the same?
No. Not all home inspection reports are the same. Just like there are hundreds of home inspectors in the state of New Jersey there are hundreds of ways that home inspectors create reports. Not every report is written the same. Home inspectors will have their own comments and report format. Most home inspectors will use reporting software that creates a template for the reporting. A good home inspector will tailor the home inspection report to the specific home that they are inspecting. Some home inspectors create very comprehensive and detailed reports with hundreds of photos. Others create reports that are checklist style and lack photo evidence. It is up to the home inspection client to properly interview and ask for report samples so the potential client can understand what a home inspection report from a particular home inspector would include. Knowing what the finished product will look like is very advantageous. The last thing a client wants is to hire a home inspector and then be underwhelmed and disappointed by the quality and quantity of the home inspection report. The home inspection report is the finished product. It should reflect the care and expertise of the home inspector. Good reports are long and comprehensive and contain hundreds of photos of the problems in the home. The more detailed and the more photos the easier it will be for the client to ask for corrections or credits from the seller.
Home inspection reports should also be provided in a timely fashion. The last thing a client wants to do is wait three or four days to get a home inspection report. Qualified home inspectors who take pride in their work and in their reporting will have the report ready within 24 hours, so the client is ready to go and work with their agent to ask for corrections. When interviewing a home inspector make sure to ask for sample reports and make sure to ask when the report will be available. Home inspectors who produce reports on site are less likely to produce a very comprehensive and thorough home inspection report. On-site reports tend to be short and use a lot of canned language that is not specifically tailored to the home that is being inspected
When should I start interviewing home inspectors?
A homebuyer should start interviewing home inspectors as soon they start looking for a home. It does not hurt to get ahead and have a short list of home inspectors properly interviewed and vetted before you put an offer on a home. The real estate market moves very quickly, and it is advantageous to know who you are going to hire to do your NJ home inspection before your offer is accepted. This is an important aspect of performing due diligence, so you have ample time in interviewing home inspectors. Once your offer is accepted and you enter attorney review you will then have a short list of inspectors and then you can choose an inspector from that list. If you wait until your attorney review period is over this may not give you enough time to properly interview the home inspector and you may be dissatisfied with your choice. The more time you have interviewing the home inspectors the better you will be and the better decisions you can make. It is always better to be early then to be late. The typical attorney review process in New Jersey will last 3 to 4 days and the typical inspection contingency will be roughly 10 to 14 days. The inspection contingency is the period of time usually based on calendar days to have your home inspection performed and the results of the inspection back to the seller.
Should I give the home inspection report to my agent?
Yes, you should give the home inspection report to your agent. If you trust your agent and they are soundly representing your interests than they would be an asset in helping you determine what are the major issues in the home that you will ask for correction or credits for. Your agent can speak to the seller’s agent regarding the problems that exist in the home or the need for further evaluation of some issues if necessary. The agent is likely to help you negotiate on the issues that are found so the agent does need a copy of the home inspection report. The buyer of the home should review the home inspection report with their agent, so the agent and the buyer are on the same page in terms of what the issues are and the game plan for getting those issues corrected or for asking for credits.
What is the most challenging aspect for buyers in today’s market.
The most challenging aspect for buyers today is that home inspections can still be performed but often real estate contracts will limit what buyers can ask for in terms of corrections for items found. Because of the very tight real estate market contracts generally only stipulate that structural issues, mechanical issues, or environmental issues can be negotiated. All other issues are generally excluded in the home. The problem that I have found is that there is no definition of these items typically stipulated in the real estate contract. There is a lot of gray area when it comes to what is structure or what is mechanical. It would be advantageous for potential homebuyers and their attorney to define those items in the home inspection contract so that there is no unclear wording or vagueness. Homes are challenging to buy now and generally have multiple offers. So, to gain traction a buyer may exclude or limit their home inspection. The full home inspection is performed but what the buyer can ask for is limited typically based on the contract. Homebuyers now must give up their rights as consumers to purchase homes in a very limited inventory environment. There is a lot of risk with this because contracts are now so limited.
There are the answers to a few more questions that were received from potential home inspection clients. The more information that clients can obtain the better off they will be so they can make informed and educated decisions the home that they are considering purchasing. Choosing the right home inspector is the most important aspect of a real estate transaction. Hiring the right home inspector can protect they buyer from making very large financial mistakes. Purchasing a home with many unforeseen problems is putting one’s family at risk and their financial well-being at risk.