House Detective: Making the Most of Home Inspection

The House Detective:  by Barry Stone, Certified Home Inspector

Dear Barry: You never do columns that recognize holidays. Even at Christmas time and the 4th of July, your articles are always about property defects, real estate disclosure, and home inspections. Now that Halloween is here, how about a spooky house story? Something in keeping with the season. Surely you’ve inspected a few creaky old houses. How about it?  Bram

Dear Bram: Home inspections tend to be business-as-usual events: checking the foundations, roofing, plumbing, electrical wiring, etc. But there was one inspection that I recall with dread and discomfort; an inspection where property defects ceased to be of concern, where routine was over-shadowed by fear, where disclosures were eclipsed by a frenzied struggle to flee the premises. And it just so happened that this inspection occurred on the eve of Halloween.

The house was an old, neglected, two-story Victorian, with leaning fences, tangled vegetation, and dense vines engulfing the walls, windows, and roof. The property, in escrow as a probate sale, had been the subject of headlines when the owner was found hanging from the rafters of the foyer. The police investigation had not determined whether death was from suicide or foul play, and the body’s subsequent disappearance from the local mortuary had unsettled the community.

The buyers and agent were unable to attend the inspection, but the agent had left a key under the mat. Bracing myself, I pressed open the massive door, entered slowly, and commenced what I had hoped would be a routine inspection. But then, beneath the lofty ceiling of the dark interior, I beheld the silhouette of the noosed rope, still attached to a high, dusty beam. A foul odor of decay permeated the stagnant air, and I recalled reading that the man had spent many days at the end of that rope before the neighbors had found him. The prospect of working alone in those dim, silent rooms unsettled me, and my foremost thought was to complete the job and get out of that ominous place.

A steep stairway descended to the unpaved basement, where I proceeded to inspect the old stone foundations, but the sounds of creaking timbers echoed throughout the building, disrupting my attention. So I busied myself and tried to dismiss my uneasiness. But then there seemed to be a different sound, somewhere upstairs. At first, it blended with the incessant creaking of the structure, but the difference was unmistakable. This was not the sound of timbers. It was the slow but steady cadence of footsteps. Someone was in the house. Hoping to hear the voice of the real estate agent, I called out, “Hello, is someone upstairs?” No one answered, but the footsteps continued down the hallway and stopped at the dark entrance to the basement stairwell. I called again, “Hello, who’s there?” Again, no answer. Then, a shadow appeared on the stairs and moved slowly, silently downward.

A dark, disfigured form gradually took shape, the head laid awkwardly against the left shoulder. Yet my attention was drawn from this to some shadowy, indistinct object that dangled from his left hand. As he reached the basement floor, a putrid foulness filled the room, so that breathing became forced and repugnant. Gripped with horror and disbelief, I was unable to move. But then, the eyes of that disjointed head found me, the lips formed a sardonic grin, dripping with thick gray saliva, and my mobility was wakened by a wave of terror. Clawing my way up the basement wall, I squeezed into the narrow space between the ground and the floor framing, seeking desperately for any way of escape. But the advancing form appeared atop the foundation wall and steadily pursued me into the dark crawlspace.

Scrambling breathlessly past rows of old piers, I reached a dead-end corner where the foundation walls joined and realized with desperate finality that I could flee no further. Somewhere is the nearby darkness, I could hear that half dead form crawling toward me. Clutching at my flashlight, I found the switch and was startled by the impending nearness of the face: the glare of cold eyes, the glint of gray teeth, the viscous fluid that dripped from grimacing lips — and that mysterious object gripped in his left hand.

Terror pounded in my chest as I faced those final, hopeless, remaining seconds. The feet between us became inches. His right hand gripped my ankle with frightful force as he drew forward. Then his left hand extended the old gunny sack that he held, and the acrid smell of cold breath filled my face, as he cried, “Trick or treat!!”

The House Detective:  by Barry Stone, Certified Home Inspector

Dear Barry: We just hired a home inspector for the house that we may buy, and this raised a dispute with the sellers. The inspector found rotted framing below the porch and living room, but he did not list this as a major defect. The sellers say we cannot cancel the deal without losing our deposit because the purchase contract allows cancellation for major defects only. What should we do? Larah

Dear Larah: Home inspectors rarely specify whether a defect is major or minor because that kind of judgment is often subjective. A defect that is major to one buyer might be minor to someone else. In the case of wood rot, two variables directly affect that assessment: 1) the extent of the damage and; 2) the cost to repair.

If large portions of the porch and floor framing are damaged, then the condition cannot be described as minor. Besides this, dryrot is not a static condition. It is caused by fungus infection that spreads further into the wood members whenever moisture is present. If left unchecked, small amounts of rot can become very major. This means that replacement of rotted wood is an immediate necessity.

This leads, of course, to the question of expense. If the repair costs are major, then the rot cannot regarded as a minor defect. To resolve this debate, you should get three bids from licensed contractors for replacement of the affected framing. Hopefully, the repairs will not be too costly and you can proceed with the purchase of the home. Otherwise, you should be entitled to a refund of your deposit.

The House Detective:  by Barry Stone, Certified Home Inspector

Dear Barry: We are buying a home and have received the sellers’ disclosure statement. The sellers say they received an insurance payment for hail damage on the roof, but they admit that the repairs were never done. We have two questions about this: Did the sellers commit insurance fraud by receiving payment for roof damages, without completing the repairs?  And, are the sellers obligated now to repair the roof?  Jen

Dear Jen: The sellers would only be guilty of insurance fraud if the claim for hail damage had been false. If the insurance company paid for actual damages, then the sellers had the choice to spend the money on repairs or to accept the money as compensation for the loss. What matters in this case is that the sellers honestly disclosed that there are unrepaired roof damages.

The sellers are currently under no obligation to repair the roof, although you can request repairs as part of your negotiations with them. What is needed now is a professional evaluation of the roof by a qualified home inspector or roofing contractor. Once you know the extent of the damages, you can decide whether repair or replacement of the roof is needed. With this information, you’ll be better prepared to negotiate with the sellers.

The House Detective:  by Barry Stone, Certified Home Inspector

Dear Barry: I bought a small commercial building about 4 years ago. Recently, I discovered evidence that there was once a fire in the basement. This was never disclosed by the seller. Now the seller says that the tenant in the building had the fire, but the seller provided no details. I have just listed the property for sale and don’t know what I should disclose to buyers. What do you recommend?  Mary

Dear Mary: If the fire was a substantial one, the fire department was probably called, and an insurance claim may have been filed. In that case, the fire department would have an official report of the event. Therefore, you should check with the local fire authorities to see what their records show.  If they have a fire report on file, it may indicate whether the owner of the building was aware of the situation. You should also ask the seller to provide the name and policy number of the insurance company so that you can learn what claims may have been made.

If the fire department and the insurance company were never notified, then the fire may have been small and the damages cosmetic in nature. In that case, you should disclose to future buyers of the property as much as you know about the situation and about your unsuccessful attempts to learn more. You should also hire a professional inspector to evaluate the condition of the property, including the fire evidence in the basement.

The House Detective:  by Barry Stone, Certified Home Inspector

Dear Barry: When we bought our house, our home inspector said that everything was in good condition. Since then, our basement has leaked, some of our circuit breakers became so hot they had to be replaced, and a chimney sweep told us that the fireplace is not usable. All of these issues should have been disclosed to us, and now we are saddled with one expense after the other. Who do we blame for these problems, the home inspector, the Realtor who recommended the inspector, or the previous owner?  Rena

Dear Rena: All three share some blame for the unfortunate lack of disclosure. The home inspector apparently did not do a thorough job. When a basement is prone to leaking, there are usually some signs of past leakage. If breakers are prone to overheating, there are usually some observable symptoms or evidence of faulty installation. When a fireplace is not usable, it is either because of substandard construction or material deterioration. Such conditions are typically identified qualified home inspectors.

If the Realtor recommended your home inspector, there could be some liability on the basis of “negligent referral.” Agents usually know which home inspectors are more or less qualified and thorough. Unfortunately, some agents are not inclined to recommend the best home inspectors. In some real estate offices, the best inspectors are labeled as “deal killers” or “deal breakers” and summarily dismissed from referral lists.

The sellers may or may not have known about the problems with the electrical panel and fireplace. Evidence of such conditions is not always apparent to homeowners. However, they probably knew about the leaking basement and should have disclosed that condition.

To hold a home inspector liable, you should give notice of the problems before they are repaired. Once the defects are altered from the way they were at the time of the inspection, it is difficult to raise issues of liability. Some home inspection contracts specifically require that you notify the inspector before making repairs.

At this point, you should give notice to the inspector, the agent, and the seller that these problems have been discovered. If no one is willing to address the matter, you can seek legal advice regarding disclosure liability.

The House Detective:  by Barry Stone, Certified Home Inspector

Dear Barry: I bought my home about five years ago and hired a home inspector prior to purchase. Recently, my contractor replaced some exterior siding. When the old boards were removed, he found rotted framing inside the walls. Is this something the home inspector should have found five years ago, and do I have any recourse?  Kate

Dear Kate: A home inspection is specifically defined as a “visual inspection of conditions that are exposed and accessible at the time of the inspection.” No home inspector can determine conditions that are hidden within finished walls. The rotted wood, after all, was discovered by removing the siding; something that does not take place during a home inspection. Keep in mind also that five years have passed since your home was inspected. Wood that is currently rotted may have been intact at that time. But that could only have been determined by opening the walls, and investigations of that kind are beyond the scope of a home inspection.

When hiring a home inspector, it is wise to read the inspection report and contract in their entirety. This will familiarize you with the standards and limitations of the home inspection process.

The House Detective:  by Barry Stone, Certified Home Inspector

Dear Barry: We just hired a home inspection for the house that we may buy, and this raised a dispute with the sellers. The inspector found rotted framing below the porch and living room, but he did not list this as a major defect. The sellers say we cannot cancel the deal without losing our deposit because the purchase contract allows cancellation for major defects only. What should we do? Larah

Dear Larah: Home inspectors rarely specify whether a defect is major or minor because that kind of judgment is often subjective. A defect that is major to one buyer might be minor to someone else. In the case of wood rot, two variables directly affect that assessment: 1) the extent of the damage and; 2) the cost to repair.

If large portions of the porch and floor framing are damaged, then the condition cannot be described as minor. Besides this, dryrot is not a static condition. It is caused by fungus infection that spreads further into the wood members whenever moisture is present. If left unchecked, small amounts of rot can become very major. This means that replacement of rotted wood is an immediate necessity.

This leads, of course, to the question of expense. If the repair costs are major, then the rot cannot regarded as a minor defect. To resolve this debate, you should get three bids from licensed contractors for replacement of the affected framing. Hopefully, the repairs will not be too costly and you can proceed with the purchase of the home. Otherwise, you should be entitled to a refund of your deposit.

The House Detective:  by Barry Stone, Certified Home Inspector

Dear Barry: Before we bought our home, we hired a home inspector, but he didn’t report any of the major problems in the house. Now we have to repair the plumbing, the electrical wiring, and the roof. When he did the inspection, he said everything was OK, but he was just lying, and we think he may have gotten a big tip from the seller or the agent. He was supposed to be working for us. Why would a home inspector do business this way?  Beatriz

Dear Beatriz: To assume that a home inspector took a bribe is a big jump. When home inspectors fail to report defects, the problem is usually negligence or professional incompetence, not willful collusion with sellers or agents. Unfortunately, there are more than a few home inspectors who are just plain inexperienced or not adequately skilled as inspectors. Because of this, many homebuyers do not receive adequate disclosure. To make matters worse, there are many agents who recommend such inspectors to their clients.

The first thing you should do is have your home reinspected, but this time you should find an inspector with many years of experience and a reputation for thoroughness. To gather some leads, call a few real estate offices and ask for the most “nit-picky” home inspector in town. Tell them you want a home inspector who is known as a “deal breaker.” That’s the misnomer that some agents apply to the best inspectors.

A second report from a truly qualified home inspector will reveal the actual condition of your home and will provide a more complete list of the issues that were missed by the first inspector. Then you can notify the first inspector of your concerns and ask if he has errors and omissions insurance. Hopefully, he will be willing to address your concerns.