Conducting your own purchase agreement home inspection

[Forensic74]

Anyone with a PE and/or SE out there conduct their own inspections during the contract process of buying their own home? Am wondering if I would find something bad enough to get out of a purchase it would open me up to suit from the sellers.

 

[Ron]

I have done my own inspections but have also gotten a certified home inspector to do the full inspection for THEIR liability purposes. Don't take it all on yourself. Pay the nominal fee for a home inspector then "guide" the home inspector through the critical issues. With the exception of structural issues, he/she will probably find more issues than you would.

 

[GregLocock]

Depends on jurisdiction. In Australia that inspection is needed by the mortgage people, so if you did it yourself there'd be a possible conflict of interest, which I personally would want to avoid. So far as using found defects to knock down the price, there is no CoI, you are using your engineering superpowers legitimately. Just remember not to wear the tights when you drive back home.

Cheers

Greg Locock


New here? Try reading these, they might help FAQ731-376

http://eng-tips.com/market.cfm?

 

[MintJulep]

Ron's approach seems a reasonable one.

Alternately, the offer of purchase - with whatever contingencies you care to add - is a contract. If you add a contingency to the effect of "...buyer's engineering structural evaluation..." you should be fine.

Might get complicated if you find something unsafe and decide not to buy.

 

[cvg]

depending on who hires the inspector, there may always be some "conflict of interest". you may want to also hire your own inspector who might be a little more thorough with his inspection than the one hired by the escrow company. And I recommend that you accompany the inspector while he does it if you possibly can. my experience is that the inspectors hired by the escrow companies for the properties I have purchased in the past generally did a crappy job and did not dig very deep looking for issues.

 

[moltenmetal]

We had a "certified home inspector" do an inspection for us, just for peace of mind. He missed some things which we discovered within days of taking possession. We called him back. He pointed out the part of the inspection contract which says that they aren't really liable for anything much. They don't have to so much as move a cardboard box out of the way to get a better look, so when doing an inspection on a home full of the current owner's junk, the opportunity to miss stuff is definitely there. In our case, the problems were hidden under a layer of vapour barrier in the basement. Not his problem- definitely our problem. We took our lumps and sorted them out- it was nothing major really, but if detected prior to sale it could have been a negotiating chip to get a better price.

 

[btrueblood]

I agree with following the inspector around. Knowing where the crawlspace trapdoor is at, and the shutoff valves for water/gas, etc. are handy things to know.

Regardless, the LP siding on our new house was listed by the inspector as "cedar"...we found out the truth later when the recall notices showed up in our mailbox. The disclaimers on everything the inspector wrote pretty much left him free and clear.

 

[Forensic74]

You guys have pointed out the obvious...that home inspectors generally glaze over everything. I'm a forensic engineer and actually see how everything fails including cladding and roofing issues, and see firsthand how these "inspectors" miss major issues that leave the homeowner in a major lurch. I've seen so much crazy stuff it almost makes it hard for me to buy a house. Such is why I want to write myself into the purchase agreement. I'd hire a home inspector for kicks, but I dont expect much out of them.

MintJulep hit the reason why I posted in the first place. I can write myself into the buyers agreement; however, if I find something bad enough to use as a negotiating chip and/or back out completely, I'm not sure of the potential for a suit. I guess it might be difficult for them to pursue anything if I'm upfront in the purchase agreement contract??

Either that, or just take a really long time during the walkthrough!

 

[MortenA]

Forensic74 - maybe you should rent

 

[Canuck67]

Often offers to purchase have standard wording to the effect that the "offer is subject to financing and satisfactory inspection". Satisfactory inspection does not specify who does the inspection, or how many inspectors you may hire, or whether you do it yourself. Leaving it generalized is to your benefit. When you arrange a time for your home inspector, show up at the same time and conduct your own inspection at the same time.

You are under no requirement to give the sellers any specific reason why the inspection 'failed' your criteria. The information you gather is either satisfactory to you or not satisfactory to you and that is sufficient to walk from a deal, no specific reason provided.

 

[Forensic74]

Canuck, all the purchase agreement contracts I've seen clearly state that the inspection "professionals" must furnish reports that detail their findings, and that the reports must be made available to the seller. What you're suggesting would mean anyone could back out for no stated reason... maybe they allow that in your state but definitely not mine.

 

[MintJulep]

Perhaps the easiest solution is to request a second showing and do your own inspection then. Before you even make an offer for purchase.

 

[cvg]

most jurisdictions allow a buyer to withdraw an offer without giving cause before it is accepted by the seller. Once the seller accepts the offer and assuming you can get financing you can still back out - but there may be some liquidated damages. those damages include your escrow deposit and possibly a brokers fee. All should be stated in the fine print on your offer and your realtor should be able to explain the local laws to you.

 

[LionelHutz]

I agree to just do your inspection before signing the purchase contract. I've done it that way with the houses I've bought. The agent is trying to show me the "space" while I'm looking in closets and opening electrical panels and lifting ceiling tiles and going into the attics. One house has plaster damage on a wall so I was measuring floor to ceiling height to ensure no questionable settling was going on. The no liability clauses of the home inspectors leave me with little faith in solely relying on them. You can always not buy if they balk at you wanting to take a closer look at the house.

 

[monkeydog]

Forensic74 -
For your "proposal" to buy the property, you can as the buyer, write in a contingency that you be provided access to perform an "in depth" structural, plumbing, HVAC inspection in addition, after or in-lieu of an inspection performed by a "professional/licensed" inspector.

 

[SteelPE]

I am only remotely familiar with the home inspection process. I can see your concern in regards to inspectors missing major issues. However, depending on the situation, you might be opening yourself up to litigation in the future if you find something wrong with the house as it might look like you are trying to back out of the deal. Depending on who you end up with on the other end of the deal this may or may not be a problem (say you are buying a house currently owned by a lawyer vs an accountant).

I think MintJulep might have the better approach, do your inspection during a private showing.

 

[ornerynorsk]

Caveat emptor, and due diligence. Although I am not a licensed professional anything, I use the phrase "contingent upon favorable inspection by home inspector or other licensed trade professional(s)". I've got enough friends that are licensed professional somethings that anything I find can usually be backed up in writing by someone. We've done a dozen or so real estate deals over the years, both commercial and residential, and that phrase has never failed. It applies to electricians, plumbers, structural engineers, roofers, etc, and it will hold water in most courts. Be as broad and encompassing as the seller will stand for in the purchase agreement. You can put anything that is legal and agreeable to both parties in a PA.

It is better to have enough ideas for some of them to be wrong, than to be always right by having no ideas at all.

 

[1gibson]

"Favorable inspection by home inspector OR other licensed trade professional(s)"

Wouldn't it need to state "AND" to hold up to any real challenge?

Hypothetical: Home inspector gives it a pass, other trade professionals reject. The clause is still satisfied, is it not?

 

[FishTheStructure]

Our home inspection clause was written as:
"This offer is conditional upon the inspection of the subject property by a home inspector at the Buyer's own expense, and the obtaining of a report satisfactory to the Buyer in the Buyer's sole and absolute discretion."

I figured that this clause would let me get out of the deal at anytime regardless of how minute of a deficiency was found during this inspection.

Great spirits have always encountered violent opposition from mediocre minds - Albert Einstein

 

[LionelHutz]

If you found a defect yourself and the seller balked because you did the inspection, then pay a home inspector and make sure the inspector finds the defect and writes it into their report. Otherwise, you can save your money.