Hire a home inspector before making an offer

Hiring a neutral residential inspector is helpful in buying a home.

Buying a house is a big deal -- the greatest investment that most people make. So, why do so many people feel like they have been rushed through the process?  It seems like I spent more time on picking out a new shirt than I had to really look at a huge investment like a house.

Some of the same people who would kick the tires, go for a test drive and even hire a trusted auto mechanic to check out a car they were considering buying, think twice about having a home inspector examine a house before purchase!

If you are considering signing on the dotted line, we at NeighborWorks of Grays Harbor strongly advise hiring a neutral home inspector to be your trained eyes. And, frankly, for those looking to finance a home through us to buy a house, we require it.

That’s true of many financial institutions who are loaning money based on the determined value of the home. It’s partly their asset until it’s paid off so they want to know that the roof isn’t going to cave in and the foundation won’t crumble.

For the homebuyer, even “bad news” may be good news. Issues uncovered by the inspection give the potential homebuyer the opportunity to consider the financial implications associated with buying that house and can make an informed decision whether to move ahead with a transaction. Yes, it cost you a bit of money to find out the truth, but it could save you 10 times or more in costly repairs if there are serious problems.

Assessment vs. Appraisal

The County’s Assessor’s Office each year assesses each house in Grays Harbor to determine what it is worth. Once tax rates are determined by the voters, a homeowner then pays his or her share of the total amount levied, depending on how much the home is worth according to the latest tax assessment.

In contrast, an appraisal is generally only done at key times during the life of a home. Most typically a home is appraised when it’s up for sale, to support a basis of market value for a lending institution to issue a loan. In addition, homes may be appraised when a seller is trying to establish a selling price or when a homeowner is looking to refinance or extract equity from their home.   

Also, an appraisal, which is typically a more detailed judgment of the value of a home than the county’s assessment, could be needed to settle an estate, when a couple is divorcing, or for insurance reasons.

Typically, but not always, a home’s appraised market value tends to be higher than its tax assessed value. 

Local appraiser Mike Rosevear said that over the years his business has shifted so that now he is hired about 70 percent of the time by individuals or estates and about 30 percent by lending institutions.

“I often do appraisals for people who want an idea of the market value of their house before they put it on the market themselves. And, I can give a general idea of things they might need to repair or fix,” he said.

Most of the housing stock on the Harbor is about 60 to 90 years old, he said, and the main thing he sees is small, deferred maintenance like open outlets, small plumbing leaks, broken windows and missing flooring.

A typical in-town appraisal will cost about $650 to $800, and generate a 20- to 30-page appraisal report about a week later. (Homes with acreage and extra outbuildings typically cost more.) The appraisal (walk-through) typically takes about 40 minutes, he said.

An appraiser’s main goal is to get an overall sense of the condition of the home so that the market value can be determined, Rosevear said. 

“In a typical home appraisal, you don’t go on the roof or in the crawlspace. However, if I notice or suspect an issue with the roof, for instance, then I might call for a roof inspection,” he said.   

The same is true if the foundation looks wonky or there are signs of pests; the appraiser would note the concern and suggest an inspection.

“For instance, if I saw dry rot or a lot of wood-to-earth contact, I would call to have a pest inspection done,” he said.

“The worth of the house is not an exact science, but is within a range. That’s what the lender wants to know – if the price being asked is within the sale range. They want to know if the house is in good condition and have us point out safety issues and other things that are detrimental to a home,” Rosevear said.

Home inspection

When it comes to walking the roof, crawling in the crawl space and snooping around in the attic, that’s the job of a private residential inspector.

Typically, before the appraiser looks at a home, a home inspector has already done his inspection, Rosevear said. The home inspector is not there to give a value on the home but to give useful information to the buyer – or seller – about the condition of various components of the home.

The cost for an inspection will vary based initially upon what you want them to do. The price will then depend on things such as the size of the home, its age, the condition of the property, as well as the type of report you will require.

Matt Main, the owner of Main Inspections, a Puget Sound-area company, said it takes him two and a half to three hours to conduct most inspections of a typical three- bedroom, two-bath house. As far as price, he said he recently inspected the interior only of a condo for $450, and a 2,800-square-foot new build with a sewer scope for $815. Travel time can add to the cost.

Main says about half of the inspections he does are for the potential buyer.

We recommend that you, the potential buyer, be the one to select and hire your own inspectors. We know it’s tough, but ignore past inspection reports, even recent ones because they are essentially only valid on the date of the inspection. Sellers can and will make changes to their property when problems are brought to their attention, such as by the last inspection of the property. You will want to have the benefit of your inspector’s eye on these changes.

A thorough home inspection takes several hours. Your inspector’s checklist should include the foundation, siding, roof, chimney, attics, windows, ventilation systems, heating and cooling systems, electrical system, plumbing, possible environmental hazards (buried oil tank or other contaminants) and even property drainage systems.

Main said he even runs each of the appliances. “I think the state’s standard of practice (checklist) should be the minimum, not the bar of what should be inspected,” he said.

Also, if you’re buying in a rural area, make sure to call the County Health Department regarding the septic and perhaps the water systems.

The inspector’s “Findings Report” may be oral, with you taking notes, or may be a complete written report. Written documentation can be a powerful tool when negotiating the purchase and may serve as a clear list of what needs to be done before or after closing.

In any event, it’s a good idea for you to be present during the inspection. It’s often easier to understand an issue when looking right at it, rather than just reading about it later.

“I’d rather have a client present to walk them through what I found. The report can sound scary. Codes change and especially with older houses. You can have a more nuanced conversation about the concerns,” Main said. “Besides, I really like teaching people about their home and how to maintain it and where, for instance the electrical resets are.”

While a pest inspection, is a separate license, as a residential inspector, Main said if he sees beetle, termite or fungus damage, he’s allowed to say that he spotted evidence of “wood-destroying animals,” and recommend a pest inspection.

As far as inspections and your dream go, no house – especially an older one – is perfect. So, even if the inspector has concerns, it doesn’t necessarily mean you shouldn’t buy the home.  (Main said in all his years of inspecting, he’s only had one property – a $5 million new condo in Bellevue – that that had nothing of concern to note.)

If the inspector discovers major problems, you may wish to negotiate the asking price to cover some or all the repair costs. But remember, if you decide to buy the house, its problems become your problems.

When house hunting, it’s good to remember that before you make offers on multiple houses, you might be responsible to pay for the home inspection on each one. So, make sure you are moving forward on an offer for a home that you are truly interested in. Still, if the report that’s generated seems concerning, consider yourself a well-informed buyer and make your decision accordingly.

Some people hire annual home inspections just to ensure that nothing is amiss, Main said.  Often its elderly people who no longer want to climb on the roof to check it out or a widow who wants peace of mind about the integrity of her home.

Main said other clients include investors and people who hire him to inspect a new house at 11 months, right before the warranties are up, or at five years before the roof warranty is up. 

 Eric Bjella is the executive director of NeighborWorks of Grays Harbor; a nonprofit organization committed to creating safe and affordable housing opportunities for all residents of Grays Harbor County. For questions about home repair, housing counseling, homebuyer education and financing, call 360-533-7828, listen to the extension picks that will best help you and leave a callback name and number