A Training Session developed for 6 March 2009

HOME INSPECTION Purpose? Primary: Know what your buying and what maintenance needs to be done to preserve your investment. But there’s this big transaction going on and the home inspection is often also used (especially in this market) for further negotiations between the buyer and seller.

Purpose?

Primary: Know what your buying and what maintenance needs to be done to preserve your investment.

But there’s this big transaction going on and the home inspection is often also used (especially in this market) for further negotiations between the buyer and seller.

HOME INSPECTORS Before you decide on a home inspector What is your business going to be? Which is more important to you, quality or quantity? Are you building a referral base or counting on out of town marketing?

Before you decide on a home inspector

What is your business going to be?

Which is more important to you, quality or quantity?

Are you building a referral base or counting on out of town marketing?

HOME INSPECTORS Now Find a Home Inspector that matches your business model: In and Out in a hurry >> Succinct >> Sometimes misses stuff, but rarely big stuff. OR Thorough inspections even on great houses>>>Rarely misses anything.

Now Find a Home Inspector that matches your business model:

In and Out in a hurry >> Succinct >> Sometimes misses stuff, but rarely big stuff.

OR

Thorough inspections even on great houses>>>Rarely misses anything.

HOME INSPECTORS Fast Inspectors Advantages: He’s fast. Disadvantages: Client can become concerned their inspector wasn’t good (because he didn’t take very long) or just wanted their money. Add another couple of negative experiences in the transaction and they quickly blame you >>>>referrals go down.

Fast Inspectors

Advantages: He’s fast.

Disadvantages: Client can become concerned their inspector wasn’t good (because he didn’t take very long) or just wanted their money. Add another couple of negative experiences in the transaction and they quickly blame you >>>>referrals go down.

HOME INSPECTORS Thorough Inspectors Advantages: Client very likely to be satisfied with inspection (which reflects well on you). Disadvantages: It takes longer.

Thorough Inspectors

Advantages: Client very likely to be satisfied with inspection (which reflects well on you).

Disadvantages: It takes longer.

HOME INSPECTORS What You don’t Want is An inspector that makes small things big. You probably don’t want someone who makes big things small (just causes problems after closing, when the client realizes it’s really a big thing). The inspector is a neutral consultant. He should insure the client has the right perspective on discrepancies.

What You don’t Want is An inspector that makes small things big. You probably don’t want someone who makes big things small (just causes problems after closing, when the client realizes it’s really a big thing). The inspector is a neutral consultant. He should insure the client has the right perspective on discrepancies.

HOME INSPECTORS Your Thoughts, Questions, etc before we go on to Vacant Houses.

Your Thoughts, Questions, etc before we go on to Vacant Houses.

Myths “ As Is” means I can’t get/don’t need an inspection. I don’t have a home inspection contingency, so I can’t get/don’t need an inspection.

“ As Is” means I can’t get/don’t need an inspection.

I don’t have a home inspection contingency, so I can’t get/don’t need an inspection.

DON’T BE AFRAID OF YOUR INSPECTION Client already knows the big picture The Inspection provides the details Most of the deals fly or not based on factors external to the inspection. These deals require patience from everyone (you, me, and the client)

Client already knows the big picture

The Inspection provides the details

Most of the deals fly or not based on factors external to the inspection.

These deals require patience from everyone (you, me, and the client)

Pitfalls of Inspecting Foreclosures and Short Sales To Prevent Delays g et the Electricity, Gas, and Water turned on for the inspection. Many of these homes have not been loved. Thorough Inspection protects your client and your referral prospects.

To Prevent Delays g et the Electricity, Gas, and Water turned on for the inspection.

Many of these homes have not been loved.

Thorough Inspection protects your client and your referral prospects.

Common Vacant House Inspection Items Leaking Plumbing Significant (often cosmetic) repairs Electrical Creativity HVAC complications Deferred Maintenance Mold/Mildew

Leaking Plumbing

Significant (often cosmetic) repairs

Electrical Creativity

HVAC complications

Deferred Maintenance

Mold/Mildew

Below Grade Walk Out Basement

Flooded Basement

High Humidity

But What Caused the Basement to Flood?

No Electrical Power The walk out well drains into the basement sump. With electricity turned off, the sump pump doesn’t work. The basement floods from the outside when it rains hard enough. Basement Sump Well Drain Line By the way, this can happen in an occupied home with a below grade basement when the power goes out during a storm. Consider getting a battery powered backup sump pump

The walk out well drains into the basement sump.

With electricity turned off, the sump pump doesn’t work.

The basement floods from the outside when it rains hard enough.

By the way, this can happen in an occupied home with a below grade basement when the power goes out during a storm.

Consider getting a battery powered backup sump pump

Other Things to Look For High Humidity Smells Musty Smell >> Mold >> Moisture from somewhere Sewage smell >> Could be plumbing traps evaporated.

High Humidity

Smells

Musty Smell >> Mold >> Moisture from somewhere

Sewage smell >> Could be plumbing traps evaporated.

Below Grade Walk out Well

Gutters

Mold From High Humidity – AC Off

The Electrical Fire VS Moisture Damage Dilemma

Electricity On or Off Electricity On Sump Pump Powered AC on in Summer Heat on in Winter Lights to deter vandals Electricity Off No electrical fires Less inviting to vagrants (really?)

Electricity On

Sump Pump Powered

AC on in Summer

Heat on in Winter

Lights to deter vandals

Electricity Off

No electrical fires

Less inviting to vagrants (really?)

A Guideline If the house has a modern electrical system and it “looks sound”, keep the electricity on. The chance of electrical fire is outweighed by the gains of having power to the sump pump, heat, and AC. If the house has a below grade basement, you really should have electricity to at least power the sump pump. Old or “Scary” electrical system. As the probability of electrical fire rises, the benefits of having electricity become less significant.

If the house has a modern electrical system and it “looks sound”, keep the electricity on. The chance of electrical fire is outweighed by the gains of having power to the sump pump, heat, and AC.

If the house has a below grade basement, you really should have electricity to at least power the sump pump.

Old or “Scary” electrical system. As the probability of electrical fire rises, the benefits of having electricity become less significant.

References Some Pictures from Full Steam Ahead, Inc - www.fsamb.com/mold.html

Some Pictures from Full Steam Ahead, Inc - www.fsamb.com/mold.html