Home Inspection Material Defects, what does that mean?
First of all, I think there should be a better understanding of what a home inspection is… and isn’t!!
Perceptions of a Home Inspection
A home inspection is expected to be a lot of things, there are expectations by the buyer, worry by the seller, a way that things should be communicated are expected as well. During the largest purchase of most buyer’s lives, they are advised, and wisely so by their trusted Real Estate professional to obtain an inspection, by a Certified, Professional inspector. Let’s quickly move on, this stuff has been said before.
- From the inspector’s point of view – Taken from one of the national standards “A general home inspection is a non-invasive, visual examination of the accessible areas of a residential property, performed for a fee, which is designed to identify defects within specific systems and components defined by these Standards that are both observed and deemed material by the inspector. The scope of work may be modified by the Client and Inspector prior to the inspection process.” To us, it’s pretty clear! We have a defined standard to go by and rules of engagement!
- From the buyer’s point of view – The inspection will hopefully discover everything wrong with the home now, what ever will go wrong with the home in the future and what the cost’s to repair the home now and in the next 5 years will total!
- And why not? Folks are just trying to figure out if they’re buying a Money Pit, right?
All the TV shows and media out there are showing folks driving a sledgehammer through a wall and talking about things after the fact! There are no second chances!
- And why not? Folks are just trying to figure out if they’re buying a Money Pit, right?
Definition of Home Inspection
The shocking part, a real estate inspection is defined in scope, by the agreed upon terms of the purchase contract.
- This is where the gap is created. You have the buyer’s expectation, the inspector’s service and the contract that was agreed upon prior to the inspection. It takes good communication to get this all right!
The physical inspection is loosely as follows:
- Depending on circumstances, a seller is generally going to be subjected to a repair request for items defined as a Material Defect – “A material defect is a specific issue with a system or component of a residential property that may have a significant, adverse impact on the value of the property, or that poses an unreasonable risk to people. The fact that a system or component is near, at or beyond the end of its normal useful life is not, in itself, a material defect.”
That last part that I bold’ed is probably the most misunderstood part of a home inspection. I mean it, after 1000’s of inspections, I’ve realized that a system at the end of it’s useful life is something that is a hanging point in a deal.
- My thoughts on that – While a buyer should know that components are aging, and this fact should be reported upon… it’s not a home inspector’s job to condemn/call as a defect a system, simply due to age of component. Why do I make a point of that, you ask.. It’s simple, it’s not a material defect.
“It works, right?”
As far as the inspection goes, it’s my opinion that a buyer should be made aware that the water heater, roof or HVAC system is at the end of it’s useful life… but it should also be understood whether the item is currently functioning as intended, correct?
And that’s the tricky part for all to understand. If an item’s well installed, lacks visible signs of failure and doesn’t need repair due to a material defect then, quite frankly no one has a crystal ball. It may last for a few more weeks or a few more years, no one really knows.
So, with all that I’m still confused… what are home buyer’s to expect??
I, for one think that as a Home Inspector, it’s a shame to not set expectations and help a buyer understand what the service that they are paying for is and isn’t!!
It really doesn’t take very long to explain that:
- An inspection and it’s findings may not always be items that are subject to repair by the seller. In some regard, it’s my job to inform you of deficiencies or a potential item that may need repairs or an item to start saving money for replacement… I am there to add/supplement to disclosure… or many times the complete lack of disclosure by seller (foreclosures etc).
- An inspection is visual.. I take stuff apart, but don’t rip into walls! For example, a service panel for a furnace or cover for electrical panel will be opened. But, there are but’s too…If a home is occupied, we may move something to better look at a system, but for the most part… the furnishing are the seller’s property and should be respected and left alone. How to prepare a home for inspection is a different topic, that I think could streamline things a bit.
- An inspection is a snap shot in time! We are here for a couple two or three hours and while I am going to focus on quite a large number of components, I’m not going to judge or form an opinion on a lot of cosmetic items. You don’t really need to pay someone like me to tell you that the floors are worn or it needs paint, I hope.
Simply put, I generally strive to help a customer understand what I’ve looked at, where it fits into the above and ask them how I can better help them understand anything I’ve talked about. Then I compile a report..
And lastly… you get what you pay for. Simply put. As a long-time inspector, building contractor, someone who’s hand their hands on just about every aspect of construction and repair… I’ve seen countless reports from folks that have no right to collect $$ from someone and call themselves a professional. That’s another topic for another day…
There ya go!
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