Inspection Report and Disclosure - Very Important

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Hiding unfavorable information can backfire, spark lawsuit

Inspections are an important part of the home buying process - if you have sold a home you know the inspection process can be nerve-racking for both buyers and sellers.

Both parties want the deal to go through without a hitch. However, sometimes problems surface that the buyers weren't aware of when they entered into contract, even after reading the Sellers Disclosure.

All houses have some sort of defect, even new ones.

Buyers, it shouldn’t be a surprise that when you pay a "home inspector" to find out everything that is wrong with your potential home that defects are discovered.

The serious questions to ask yourself are:

Is there a problem?

How serious is the problem?

How much will it cost to repair?

A home inspector may have a contractor's license. But, few inspectors also are engineers, architects, and plumbing, heating, roofing, wood pest (termite) and drainage contractors. Nor are they pool, spa, sprinkler or security-alarm specialists. For this reason, most home inspection reports are loaded with disclaimers and recommendations to contact the appropriate specialist to evaluate the severity of a problem.  Take it with a grain of salt.

TIP: If you get a "dirty" report, We recommend that buyers follow up with further inspections, and get estimates to repair defects that are a concern before removing an inspection contingency. An inspection contingency protects the buyers, but only if they carry through and complete necessary inspections.

Don't be surprised if a second opinion confuses rather than clarifies an issue.

For example, a home inspector might be concerned about the internal mechanics of an older A/C unit.

And, he may not have the expertise necessary to say with confidence that there is no problem.

So, he recommends that the buyers consult with a licensed heating contractor.

Just because an inspector suspects there might be a problem doesn't mean that one exists.

A few years ago, buyers of an older home in East Orlando were advised to have a heating contractor check the A/C because the home inspector thought it might need replacing for safety reasons. The faulty A/C unit with a cracked heat exchanger leaks carbon monoxide fumes that can be deadly. (SOUNDS SERIOUS!!!)

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The buyers called in a heating contractor who inspected the furnace and said that it needed replacing. The buyers were disappointed, but wanted to continue with the sale. So they asked the sellers to share in the expense of a new furnace.

The sellers weren't convinced that the furnace needed replacing. And they didn't want to contribute to the cost of a new one if it wasn't necessary. They contacted a second reputable furnace contractor who inspected the furnace and said it was fine and didn't need replacing.

To resolve the dispute, the buyers and sellers agreed to call in an inspector from the local utility company who would have red-tagged the furnace and put it out of commission if it was dangerous. The verdict was that the furnace was fine and had years of life left.

More and more, sellers are having their homes inspected by professionals before putting their homes on the market. This can only AID in the sale … because we will know what we are selling.  There "shouldn’t" be any surprises when the buyer's inspector goes through the property.  Another advantage:  Disclosure Reasons.

It is risky for sellers to hide a bad report from buyers. There have been cases where sellers chose not to give the buyers a report they didn't like. Later, the buyers coincidentally called in the same contractor for an opinion who informed the buyers that they had already done a report on the house for the sellers.  Honesty is the best route here.  With our rising inventory in Central Florida - price and value are the best combination for sale.

Lawsuits have resulted from sellers withholding detrimental reports, although disclosure laws vary from state to state.

Sellers who aren't pleased with a report should consider getting a second opinion and disclose both reports to the buyers.

The State of the Nation Report on Housing 2008 by Harvard University