House inspection

Make sure the real estate purchase contract includes an inspection clause. Typically, contracts allow home-buyers seven or so days after signing to have the property inspected. But that's not always the case, so it's important that the contract include a home-inspection clause. The results of the inspection can be used to ask the seller to fix trouble spots, or to adjust the selling price to cover the cost of necessary repairs.

- Get references

Because laws regulating the licensing of inspectors are non-existent, Certification from professional associations is often a better barometer of an inspector's experience and skills.

The B.C. Institute of Property Inspectors' Web site www.bcipi.net maintains a list of certified inspectors, searchable by area. Word of mouth is still the most common way to find an inspector.

But even if the recommendation comes from a friend or real estate agent, it's a good idea to check for certification, call references, and consult the local Better Business Bureau to make sure previous jobs have been without incident.

- Demand a thorough job

There is very little stipulating exactly what must be covered during an inspection (for information, please see Standards of Inspection on the BCIPI web site). A thorough job should include a complete assessment of the interior and exterior of the house, from roof to foundation, as well as some analysis of the heating, plumbing and electrical systems. Some crawl spaces may be too small or too dangerous for inspectors to wriggle into; expect to be told about any parts of the house that weren't examined.

For a three-bedroom, two-bath home, a complete inspection should last at least three-four hours, minimum and cost between $400 and $500, depending on the region and size of the house and property.

"Cost is a good indicator of how comprehensive the inspection is going to be," says one Certified member, whose experience prompted him to give up carpentry and become a home inspector himself. "An inspector can't afford to do a good inspection for $99-$199." One key reason: expensive equipment. A diligent home inspector carries a toolbox that includes natural gas detectors, moisture meters, outlet testers, voltage meters and an array of measuring devices.

"The discount guys try to get away with not much more than a flashlight, ladder, and screwdriver. That's not enough," he says.

- Get results in writing

The inspection report is an excellent gauge of just how exhaustive the work is.

Examine a sample copy before hiring an Inspector. A complete report should be anywhere from 15 to 20 pages long, describing in layman's terms what was observed and any problems that were uncovered. If there are serious structural issues, or any problems the inspector can't diagnose, the report should recommend further examination by a structural engineer or other specialist. Some inspectors include estimates of the cost of repairs - but it's considered a conflict of interest (under professional trade-group rules) for inspectors to solicit repair business based on their findings. Make sure that the home inspector agrees to spend up to an hour or so with you to go over the details of the inspection and answer your questions.

- Hold the Inspector liable for missed problems Inspection contracts tend to be 'minimalist' documents, but they contain one critical piece of information: the Inspector's liability if he fails to discover an existing problem with the house or property. In many cases, liability is limited to the cost of the inspection.

So, if you've paid $400 or so for the service, that's what the Inspector is obliged to reimburse you, even if you turn up a $4,000 problem the day after you move in (remember, though, the property condition can change or even be damaged by the party still occupying at the time of your purchase offer).

Faced with this situation, you can protect yourself by hiring an Inspector who carries insurance that covers not only damage to the property during the inspection but also losses due to "Errors and Omissions" if an expensive item is truly overlooked. To lock in those protections, it's vital the Service contract call for binding arbitration. With litigation so expensive - and, in the case of a relatively small contractor like a home inspector, not likely to be particularly rewarding - arbitration is the best way to safeguard your interests

- Don't skimp on an Inspection just because the house may be new

New-home buyers are more likely to forgo an inspection than purchasers of existing houses, even though they may have more to gain. Because most new homes come with a warranty, an inspection can unearth construction flaws covered under this agreement that might otherwise go unnoticed for too many years. "Municipal building inspectors, who generally do a 15-minute run-through, are not likely to find these problems," says a home inspector who has witnessed all sorts of glaring problems.

- Consider an Inspection even if you're the seller

If you need to sell a house quickly - perhaps you're relocating for a job or have already purchased a new property - you may be able to save time by having the place inspected first. That way, you can find and fix any problems that might slow down the sale. "If a seller needs a smooth and fast transaction, they should do a home inspection before putting the property on the market," say many local Realtors. "They'll know what issues they may have to address and be able to take care of them before they become an issue." Home inspectors acknowledge that whether a house is new or old, there are certain potential trouble spots that can be nearly impossible to discern, such as cracks in concrete slabs that are concealed by floor coverings or damage to walls that is hidden behind a careful paint job.

But they argue that flaws like these are rare. "What a good inspector is looking for, and what he builds his reputation on, is the things that will cost buyers $10,000, $20,000, $30,000 when they move in," say good Inspectors. "If an inspector is skilled, they'll finds those things if they are actually there."

(Source: Vancouver Sun)