Friday 26 July 2013

Home inspectors

Home inspectors occupy a strange role in the real estate transaction. Since virtually every lender requires a home inspection before making a loan, you obviously need them for a transaction. The costs of these inspections (typically $300-$400) is paid for by the home owner, so in theory at least, the home inspector is working for the buyer.

The reality though, is that again, since the agent is focused on getting the deal approved and closed, the allegiance of the home inspector is more closely aligned with the real estate agent.

Also, over the course of a year, the inspector is only going to do one inspection for you, but many more with the agent. So, when it comes time to disclose the hard fact/unpleasant facts regarding an inspection, inspectors have a tendency to sugar coat the facts in order to “keep the deal” together.


I’m not implying they are acting fraudulently, it’s more a matter of tone and presentation. Trying to sugar coat any findings that might “blow-up” a deal. The inspector only need to complete 120 hours in home inspection instruction, plus 40 hours of field training, so how much they can really tell you is impossible to say.

BuildSmart take away: don't assume a home inspector is working for you. Consider using one who isn't directly tied to your agent.

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