Jan 08

Importance of Pre-Inspection Agreements

After you have a signed purchase offer and before the day of your home inspection should be the signing of a pre-inspection agreement. Keeping in mind real estate transactions live or die around documentation and your engagement with a home inspector should not be an exception to this golden rule.

Your inspector’s insurance policy will more than likely have a condition for coverage which requires the inspector to have the buyer sign an agreement before inspection services are performed. Not having an inspection agreement signed before the inspection means you can count on not being protected by the inspector’s insurance company.

Inspection Agreement

When seeking a reasonable expectation of your buyer’s inspection, the first question that needs to be addressed is the standard by which the home should be judged. Setting your expectation means we set the framework for the relationship. Not having a framework for the business relationship between the buyer and the inspector means there is no standard for whether or not you are getting what you paid for the inspection.

While not required by state laws, signed agreements can be advantageous to all parties including, most importantly, the buyer because they establish the standards of practice and are a critical condition for your inspector’s insurance coverage.

Dec 31

Understanding Your Risk

Home inspectors all want to do a good job when offering home buyers consultation on the home’s condition and their purchase. As a buyer or agent, you want to seek home inspectors who are looking at things from a risk management perspective as opposed to critiquing building practices such as drip-edge style or other inconsequential deficiencies. Good home inspectors will consider risk as a product of potential loss and statistical probability. For example, a home’s roof may be missing a several asphalt shingles and still not leak for another five to ten years.

Real Estate Risk