How to Choose a Home Inspector
So then, what exactly is "home inspection"?
"A business with illogically high liability, slim profit margins and limited economies of scale. An incredibly diverse, multi-disciplined consulting service, delivered under difficult in-field circumstances, before a hostile audience in an impossibly short time frame, requiring the production of an extraordinarily detailed technical report, almost instantly, without benefit of research facilities or resources." - Alan Carson
A professional home inspection is only as good as the Inspector's knowledge, building experience and ability to convey information to you. Home Inspectors are sometimes thought of as general contractors who have both chosen to and are licensed to inspect homes. This is almost never the case. The requirements for licensing by the State of Texas are embarrassingly minimal. There are two approaches to obtaining a license. Some persons begin as apprentice Inspectors under the sponsorship of a professional Inspector. They next become licensed as Real Estate Inspectors, and then as professional Inspectors after satisfying education and experience requirements, including the completion of a specified numbers of inspections. Using an alternative approach, an applicant may substitute specific additional courses or personal experience in lieu of the requirements of first having been licensed as an apprentice or real estate Inspector and having completed the required inspections from Dallas Real Estate Inspectors.
Herein lies the rub. With absolutely no construction experience, any person can enroll in 488 classroom hours of inspection-related courses in a "test-teaching" facility; pass the simplistic state test and– voilà! – that person is deemed a professional Home Inspector by the State of Texas. In the military we referred to these folks as "shake and bake". When you realize that Texas requires 600 hours for manicurists and 1500 hours for hair stylists, perhaps you'll begin to put things into perspective.
If those figures impress you consider that until January 1, 2005, Real Estate Inspectors were required to have a mere 188 classroom hours to pass muster! Further exacerbating the problem has been the growing out(in)sourcing trend in corporate America that swelled the ranks of licensed inspectors in Texas from 2,196 in 2001 to a whopping 4288 as of 7/17/08. That's an almost unimaginable 195% increase in just a little over 6 years! And this during a period of time when the total state population grew by a mere 16%. The overwhelming majority of these practitioners are from backgrounds totally unrelated to residential construction and serve merely to make the crowd bigger. At last count the license numbers had soared to 10,494. Stratospheric!
Why in the world do you suppose that real estate brokers would want to flood the market with new inspector licensees? Could it be that, compared with experienced inspectors, inexperienced inspectors find little that will impede
a sale from proceeding or the brokers' progress toward the collection of their commissions? So, if you feel really lucky and you're up for a little on-the-job training, let high license numbers and low prices be your guide.
See the recent Quick Magazine article based on an interview with Aaron.
Caveat emptor.
"True genius resides in the capacity for evaluation of uncertain, hazardous, and conflicting information." - Winston Churchill
"The more valuable the information, the greater the possibility for deception." - Anonymous
Consider the following when hiring an Inspector:
Price
Experience
Licensing
Professional Affiliations
Full-Time vs. Part-Time
Multi-Inspector and Franchise Companies
Report Systems
Sample Reports
Affiliation with Real Estate Agents
Code Compliance
Insurance
Client Attendance
Consumer Advocacy
Generalists vs. Specialists
Bids / Repair / Referrals
Scheduling
Price (Back to top)
Though the least important consideration, I am listing this first because it is often the first question asked by prospective clients. Professional inspectors are not fungible goods. That is to say that they are not a commodity. One is not necessarily as good as another. All inspectors must be licensed in Texas, but that license is simply a license to operate an inspection business and is not indicative of the licenees' skill level.
A professional home inspection is an investment. If you are a comparison shopper, resist the temptation to allow pricing to be your major concern. The price of a home inspection for the average house of about 2000 s.f. is $395 -700. Beware of those charging less. Bargain Inspectors are typically inexperienced newcomers who cannot justify to themselves or their clients charging the market price for their services. In the home inspection business, you really do get what you pay for. A single defect missed by your "discount" Inspector could easily cost you 100 times what you saved. More importantly, in the event of a missed safety issue, you could lose your entire home - even your life.
A recent straw poll conducted among North Texas professional inspectors indicated a possible move afoot on the part of the some of the agents in the area to misinform all of their clients that the usual fee for a home inspection on any house, regardless of size, age, and amenities, is $250 or less. This appears to be intended to steer the buyers in the direction of inexperienced inspectors who cannot justify the usual fees. Don't fall prey to this.
The price of a home inspection from Dallas TX Real Estate Inspectors, represents a very small percentage of the overall price of a home that will likely be the largest single purchase you ever make. This is the best money you will ever spend.
See: http://www.housedetective.com/2007/09/20/price-shopping-for-home-inspectors/
Experience (Back to top)
Minimal state requirements not withstanding, most professional inspection firms require an apprentice Inspector to complete a minimum of 800 inspections prior to sending them out for the first time to inspect client homes unsupervised.
AHI requires inspectors to have performed 1000 inspections within a 36-month period prior to working without direct supervision.
In the past 11 years AHI has inspected an aggregate total of properties valued in excess of $1.65 billion. Yes, that's b-i-l-l-i-o-n.
Licensing (Back to top)
Texas was the first state in the nation to adopt legislation (in 1991) defining the minimum standards to which professional Dallas Texas Real Estate Inspectors must conduct an inspection. All Inspectors within the state must be licensed by the Texas Real Estate Commission. Only 3 of the other 30 states regulating home inspectors have chosen to follow Texas' obviously questionable path of licensing inspectors under the real estate commission umbrella. See: http://www.ashi.org/customers/state.asp
In addition, all Inspectors who perform Wood Destroying Insect (WDI) inspections in conjunction with their property inspections are required to be licensed by the Structural Pest Control Board of the State of Texas. These are the bare minimum licensing requirements.
There are levels of licenses in both of the above categories. There are three levels of Home Inspector licensing in Texas: Apprentices, Inspectors, and Professional Inspectors. There are two levels of Wood Destroying Insect (WDI) Inspectors: Technicians and Certified Applicators. Be certain that the Inspector you are hiring is both a licensed Professional Inspector and a Certified Applicator. All others are trainees.
WARNING!
Many inspectors in Texas are operating either without licenses or with expired licenses. Though aware of this issue, The Texas Real Estate Commission appears not to take action against these crooks unless formal complaints are lodged by someone who is a party to the real estate contract in question. All other reports they receive from concerned citizens seem to fall on deaf ears. Big surprise.
So to make certain that your inspector is on the up and up go to:
http://www.trec.state.tx.us/newsandpublic/licenseeLookup/search.aspx?licType=RBRealEstate&txtSearch=Lic+%23+or+Lastname%2C+Firstname&SearchLicensees.x=56&SearchLicensees.y=4
Type in your prospective inspector's name and or license number and let the games begin!
You can tell a lot about a person by whom he associates with. AHI is a member in good standing of:
AHI is a member in good standing of:
American Society of Home Inspectors, Certified Professional Inspector No. 203652 (Former COR Representative for the State of Texas)
American Society of Home Inspectors, Lone Star Chapter (Board of Directors and Charter Member, Emeritus)
National Association of Home Inspectors, Certified Real Estate Inspector No. CRI 200353
International Association of Certified Home Inspectors, Certified Inspector No. 5060294
Master Inspector Certification Board, Certified Master Inspector
International Code Council, Certified Residential Combination Inspector R-5
International Code Council, Certified Residential Building Inspector B-1
International Code Council, Certified Residential Electrical Inspector E-1
International Code Council, Certified Residential Mechanical Inspector M-1
International Code Council, Certified Residential Plumbing Inspector P-1
Exterior Design Institute, Certified EIFS Inspector and Moisture Analyst MA TX-29
Post-Tensioning Institute, Level 1 Certified Unbonded Post-Tensioning Installer
CertainTeed Corp.® Master Shingle Applicator
Texas Association of Real Estate Inspectors, Advanced Inspector
Texas Association of Real Estate Inspectors, North Texas Chapter (Past Treasurer, Secretary, Webmaster)
Metrotex Association of REALTORS ®, Member
Texas Real Estate Commission, Professional Inspector License Number 4336
Texas Real Estate Commission, Approved Inspector Trainer
Texas Department of Agriculture, Structural Pest Control Service , Certified Applicator License Number 40247, Business License No. 11379
Preservation Dallas, Advanced Historic Home Specialist
Texas Residential Construction Commission, Registered Builder No.16229
Texas Residential Construction Commission, Third-Party Inspector
Building Officials Association of Texas, Member
City of Garland, Texas Building and Fire Codes Board
Architectural Woodwork Institute, Member
Homeowners Against Deficient Dwellings, Member
Homeowners for Better Building, Member
Consumers Union, Member
United States Chamber of Commerce, Member
Many people entering the home inspection industry do so on a part-time basis. You wouldn’t think of hiring a part-time builder, architect, attorney, airline pilot, doctor, or even car mechanic. Resist the temptation to hire a "shade tree" Inspector.
Multi-Inspector and Franchise Companies (Back to top)
Many home inspection companies with multiple Real Estate Inspectors advertise the credentials of the owner of the company and provide you with an inspector with lesser qualifications. For example, they may claim to be ASHI members or to perform their inspection to ASHI standards, when in fact only the owner of the company (who rarely if ever actually performs inspections) is the ASHI member. When the time comes to look at your house, his inexperienced minions perform the inspection of your home.
Another ploy to gain immediate and meaningless credentials for an inspection company’s employees is to purchase a franchised business. In exchange for a hefty franchise fee the prospective inspector receives advertising materials, a web presence and all the trappings to give his company the look and feel of a professional and experienced firm. Once they've made that big decision as to whether they'd like to own a pizza, engine rebuilding or uplift bra company, they're on the road to success.
The bottom line here is that you should inquire as to the qualifications and experience of the individual who will actually be performing the inspection of your home.
Report Systems (Back to top)
The State of Texas requires that all existing home inspection reports be made on a Texas Real Estate Commission promulgated form. This is a rather awkward mixed format report form utilizing both check boxes and space for further narrative evaluation. Some firms offer computer generated reports complete with photographs and diagrams helpful in identifying and understanding the Inspector’s findings. Expect at a minimum a 40- to 60-page report on the average home.
Beware of inspectors who prepare their inspection reports on site. This is a quaint custom designed to make life easier for the real estate agents. It both provides them with the means to avoid meeting with their clients yet another time and it produces a less than splendid report (this equates to fewer contingencies on the road to a commission check) completed with convenience rather than thoroughness in mind.
Ask the Inspector you are considering hiring for a sample report. Be careful of companies that cannot or will not provide this to you. The report should be detailed and comprehensive, but also easily interpreted. The buyer should read the complete report, from front to back, including all of the addenda and boilerplate verbiage and liability disclaimers required by our litigious society. It is every bit as important that your inspector tell you what he is not inspecting as it is to tell you what he will inspect.
Affiliation with Real Estate Agents (Back to top)
Real Estate Inspectors in this state are licensed by the Texas Real Estate Commission, as are the real estate salespersons. Membership in local real estate boards is required in order for Inspectors to purchase the electronic devices necessary to access properties listed in the multiple listing service. To this extent Inspectors and agents are necessarily affiliated. Any professional association between the two beyond that usually indicates a very real problem. When brokers or agents mix with Real Estate Inspectors—a practice that’s common throughout the country—the result is a home inspector who lives in an agent’s hip pocket.
In 1983 the Texas real estate agents, through efforts on their behalf by lobbyists of the Texas Association of REALTORS®, were successful in having the Home Inspectors in the state regulated and licensed (in 1985) by the Texas Real Estate Commission. To date, Texas is one of a mere handful of states in the union where this is the case. Most inspector licensing is accomplished through separate dedicated agencies or through related agencies such as engineer boards. This unprecedented move was thought by some to have been a transparent ploy to both to gain control of inspectors’ reporting methods and to achieve the means with which to place the inspectors between the agents and their plaintiffs’ attorneys in matters of litigation. It is also important to note here that, though Real Estate Inspectors are regulated by TREC, they are not allowed a seat on TREC’s board. Only real estate brokers, attorneys and representatives of the general public may serve on this board. Regulation without representation is the name of the game in Austin when it comes to Home Inspectors.
The derogatory phrases "deal killer" and "contract assassin" are many times used in the real estate industry to depict thorough independent Home Inspectors who provide potential homebuyers with objective information in an inspection report that possibly could lead the buyer to renegotiate or to look at other properties.
A large number of real estate agents view independent Home Inspectors as an impediment to their ability to easily process home sales, especially in today's depressed real estate market. They dub these inspectors "deal killers", "contract assassins" (and a few other even more unsavory monikers) and use any number of tactical maneuvers to insure that their buyers do not retain certain independent Home Inspectors. For instance, when the topic first arises about getting an inspection of the home, the real estate agent may recommend to the buyer an inspector with whom they have worked closely for many years.
Most agents maintain a list of three or more inspectors who have been carefully screened to insure that the inspectors are not "deal killers". These lists will contain enough choices to protect the agents from any referral liability should the buyers want to blame them for any inspection mistakes.
Many questionably ethical Home Inspectors blatantly advertise directly to agents and brokers that they will not "kill their deals" no matter what. Their goal is to grease the skids toward closes of the sale in order to appease the agents and brokers involved.
Agent-friendly inspectors sponsor and attend local real estate board functions regularly in order to maintain their ties and position within the real estate community. From sponsoring agent breakfast meetings and golf tournaments to cooking BBQ for open houses to nights on the town, it’s one big party for this group of consorts.
Particularly distasteful are the corporate-level agreements between brokerages and large home inspection franchise companies that pay the brokerage a fee to be on a "preferred vendor list." Such agreements are a blatant example of "blackballing" that is especially difficult to combat.
Large national Home Inspector franchises are attempting to keep ethical independent inspectors out of the door because they refuse to pay the real estate agencies the money required to be on their preferred lists. The way in which the national franchise firms stay on the preferred lists is to keep those checks coming and perform minimal inspections that expedite home sales. The formula here: Big preferred status fees with no inspection contingencies will certainly the agents please.
Some real estate agents also steer buyers away from certain very thorough inspectors by saying "that inspector takes too long," "we’ve had trouble with that inspector," "we don’t allow that inspector to inspect any of our listed properties," "that inspector is too expensive" or similar disparaging comments. The mantra here is: "conceal, inveigle and obfuscate".
If you feel that I’ve overstated my case, or that I have some sort of vendetta against real estate agents, answer this: Why would the Gallup Poll in the year 2000, when evaluating ethics in various professions, find real estate agents ranked 36th out of 45 professions? Yes, they did come in ahead of lawyers, gun salesmen, insurance salesmen, car salesmen, congressmen, and a few others. But, labor union leaders, senators, auto mechanics, chiropractors, and funeral directors beat them by a very hefty margin. Sure, any large group will have a few bad apples, but 36th? Still not convinced?
In a 1996 National Association of REALTORS® poll that asked REALTORS® what they think of their colleagues’ ethics, I was not surprised to see that only 6% said "very high," 19% said "high," 25% said "average," and a whopping 52% said "low." From the horse’s mouth.
Of course, not all real estate agents are out to get you. Ethical professional REALTORS® will insist on a meticulous inspection of the property you are purchasing by an ASHI Certified Professional Home Inspector. They realize that a part of their responsibility to you as their client is to connect you with the best professionals in real estate-related fields such as Inspectors, lenders, title companies, et al.
It may also be helpful to note here that until 1995 all real estate agents in the State of Texas worked exclusively for the home seller. There were no buyers' agents. Much of the friction that occurs in real estate transactions to date has its roots in the fact that any agents who were trained and practiced their trade at all prior to the passage of buyers' agency legislation continue to feel an obligation to first protect the sellers rights. Old habits die hard.
Another thing to watch for is the common practice called intermediary agency. This is a euphemism used to describe a practice that is extremely similar to its predecessor which was properly dubbed "dual agency".
Let's say you strike out on your own looking for a house to buy. You do not utilize the free (to you) services of a buyer's agent. You find a house you like and contract to buy it directly through the listing agent. What's wrong with this picture? Simply put, you are not being professionally represented in the process. You will not have a professional to show you the ropes and negotiate on your behalf.
Buyer's agent's commissions are paid for by the seller. So they cost you nothing. All you are accomplishing by using an intermediary is allowing the listing agent to collect the entire commission for himself for doing essentially nothing for you. Why in the world would you do such a silly thing?
Yet another interesting practice I quite often see being practiced by Texas brokers and agents is called "puffing". Black's Law Dictionary, Seventh Edition, defines puffing as "The expression of an exaggerated opinion - as opposed to a factual representation - with the intent to sell a good or a service." If you have surmised that "puffing" is closely akin to "bullshitting", you are paying attention. If not, refer to Harry G. Frankfurt's "On Bullshit", or Laura Penny's "Your Call is Important to Us", for further clarification.
The key here is to carefully choose both the REALTOR® you wish to represent you, and the Home Inspector you want to advise you.
The following is extremely important. If you are buying or selling your home without employing the services of a competent professional REALTOR®, you are doing yourself a great disservice. Regardless of your perceived experience in or knowledge of the real estate industry, you cannot possibly get the best price for the house you have for sale or get the best deal on a home you wish to buy while attempting to represent yourself in the market. This is tantamount to acting as your own attorney, or worse yet, acting upon the advice of your opponent’s attorney. The person who acts as his own REALTOR® – or Home Inspector - has not just a fool for a client, but a damnfool.
Put your agent to the following test. Ask them to refer to you the same inspector they would refer to this hypothetical client: He/she is both an engineer and an attorney who is both a relative and married to the agent's best friend. Further, let's assume that your agent is representing both the buyer and the seller in the transaction. Now, I'll be waiting for your call.
Code Compliance (Back to top)
While code compliance is (supposedly, at least according to the Texas Real Estate Commission) not the primary focus of a home inspection, almost all property defects have their basis in code-related standards. To be certain that your Inspector is proficient in this area of knowledge, seek someone with membership and certification in the ICC (International Code Council. You can verify this certification at:
https://av.iccsafe.org/eweb/DynamicPage.aspx?Site=ICC&WebKey=b7afd990-2e14-4013-a186-aeb405641a95&FromSearchControl=Yes
The International Residential Code (IRC) was released in 2000 and has, by mandate of state law, been adopted by all municipalities in the State of Texas. Ask your Inspector if he/she a is a code certified inspector. This certification is an absolute must for newly constructed homes.
The State of Texas requires that inspectors (for the Texas Residential Construction Commission) of new homes be certified as Residential Combination Inspectors by the International Code Council (Texas Administrative Code 303.202(c)(2) or be a licensed Structural Engineer. To verify that your inspector is so certified visit this link for ICC certification:
https://av.iccsafe.org/eweb/DynamicPage.aspx?Site=ICC&WebKey=b7afd990-2e14-4013-a186-aeb405641a95&FromSearchControl=Yes
or visit this link for Engineer affiliation:
http://www.seaot.org
Insurance (Back to top)
As of September 1, 2007, in the State of Texas, all home inspectors are required to carry professional liability insurance. This means that, if your inspector has a valid license, he or she is insured. How important is this? After having spoken with your real estate agent, watching HGTV, or reading other inspectors' websites you may think that professional liability (errors and omissions) insurance is an important thing for your inspector to have. Yes and no. It is certainly important to the inspector in that it is a necessary prerequisite to licensing and it provides him with an attorney free of charge in the event you should decide to file suit against him. Said another way, if your inspector carries a $100,000 policy, you will need an extra $100,000 for your attorney's fee just lying around in order to sue him. There is absolutely no benefit to you unless chasing ambulances is your (a)vocation.
Client Attendance (Back to top)
The best value for your money is achieved by attending the inspection. Professional Inspectors offer a first hand verbal consultation at the inspection. This gives both you and your REALTOR® a clear understanding of conditions present, and direction, if remedial action is required. It is often difficult to convey certain information regarding the condition of a system in the home through sole use of the written word. Many people process information through visual or tactile association. Your presence at the time of the inspection is important.
A reality check is in order here. HGTV is not reality. At the risk of alienating many readers let me repeat that last little gem: HGTV is not reality! Home inspections in the real world do not take place on HGTV. Time cannot be manipulated by an unseen editor. No scripts are available to memorize beforehand or read from the prompter. Truly professional inspectors do not conduct home tutorials while simultaneously attempting to identify significant defects in the structure and its systems. Multitasking may be in vogue, but it is not practiced by the kind of focused and perspicacious folks that make great inspectors.
Real world inspectors will form a clear picture of the whole by investigating all of its parts. They will then form an opinion of how the home's systems are functioning together for the benefit of the residents. At the end of this process they will inform their clients of their findings and proceed with the necessary show-and-tell segment of the inspection.
So, leave your sound bite cap at home when attending your inspection. Double up on your Ritalin and lay off the Prozac as the case may be. Give your Inspector the full attention he deserves and you'll be pleased with the results.
Consumer Advocacy (Back to top)
Your Inspector should be, first and foremost, a consumer advocate. AHI is active in supporting many consumer advocate organizations such as HADD (Homeowners Against Defective Dwellings), NAACD (National Alliance Against Construction Defects), HOBB (Homeowners for Better Building), HOME (Homeowners’ Organization for Mediation and Education, Take Back Your Rights, et al. Ask your prospective Inspector what consumer protection organizations he is active in.
Generalists vs. Specialists (Back to top)
Home Inspectors pride themselves on the vast array of knowledge they must have at their command in order to be effective advocates for their clients. Houses are deceivingly complex structures, which consist of a large number of complicated systems operating in unison for the benefit of their occupants. As generalists, Home Inspectors must know a lot about each of these systems and how they work together with all the others. But no Inspector can be an expert in all of the fields of endeavor involved in the making of a house.
Some systems and issues require inspection by experts. Swimming pools, elevators, mold issues, lead paint, exotic construction or failing foundations, et al, require a degree of expertise not found in a Home Inspector. Home Inspectors are required to defer to experts in these situations. The Inspector you hire must be both willing and able to refer the services of pool Inspectors, structural engineers, elevator Inspectors, industrial hygienists, soils engineers, and the like when the need arises.
Bids / Repair / Referrals (Back to top)
Professional Home Inspectors are prohibited by their code of ethics to bid on repairing or repair any item that is reported in their inspection report. They are also proscribed from referring contractors to perform those same repairs. To do so would be a blatant conflict of interests.
Inspectors who quote repair prices for items noted as in need of repair in their reports are doing you a disservice. The most difficult part of being a contractor is bidding the job so that one makes a profit given the current labor and materials prices. Full-time inspectors cannot possibly simultaneously keep a finger on the pulse of every aspect of the residential general contracting business. Call professional contractors in order to get realistic bids on work to be done.
Scheduling (Back to top)
Professional Inspectors are in great demand. Expect to wait at least 2-3 days for an appointment. If the Inspector can schedule an appointment immediately it may be that he is sitting around waiting for the phone to ring. Your Inspector should be busy.
 
 
For More Information Contact:
Aaron's Home Inspections
Aaron D. Miller, CEI, CMI, CRI, RCI
Residential Construction Consultant
7401 Vineyard Trail
Garland, TX 75044-2144
USA
Phone: 214-616-0112
Fax: 972-675-6371
info@aaronsinspections.com
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