Pre-Listing Home Inspections

Home inspections have traditionally been for the benefit of the purchaser. Pre-inspected listings benefit all parties - purchasers, vendors and Realtors.

Home inspections, performed as a condition of the offer, can kill deals. Sometimes this is because the purchaser gets cold feet; sometimes there's a big problem no one knew about. Sometimes it is because the house has been misrepresented; sometimes it is because the home inspector scared the purchasers by not explaining that minor and typical problems are just that - minor and typical.

If the home inspection is performed prior to the house being listed, all parties will be aware of the physical condition of the house before an offer is drawn. There will be no surprises after the fact. Deals will not fall through.

Pre-inspected Listings Avoid Renegotiation

In a buyers' market, most houses have to be sold twice. It takes a lot of work to get a signed Agreement of Purchase and Sale. Then the home inspection is done and the purchaser wants to renegotiate.

If all parties know the condition of the house prior to the offer, there is no need for renegotiation. As most real estate agents know, renegotiation is very difficult. Vendors have already mentally sold the house; purchasers are suffering buyers' remorse. Egos, pride and frustration can muddy the already emotional waters.

A vendor who pays for a home inspection will be further ahead than one who has to renegotiate.

Unrealistic Vendors

An inspection at the time of listing can also help a Realtor deal with a vendor who has unrealistic expectations. The inspection report is good ammunition for explaining why you can't ask top bucks for a house which is not in top condition.

Repairs Prior To Sale

Sometimes, the home inspection will reveal items which should be repaired immediately. A pre-inspected listing allows the vendor to repair the problem prior to putting the house on the market.

If the inspection occurs after the Agreement of Purchase and Sale, the purchaser could walk, renegotiate or, depending on the inspection clause, the vendor may have the option to repair. A repair done by an unmotivated vendor may not be the best repair and may not meet the purchasers' expectations. This has caused more than one deal not to close.

Peace of Mind for the Purchaser

There is no doubt that part of the value of a home inspection is a guided tour of the house for the prospective purchaser. We can always return to do a walk-through with the purchaser, if requested.

What is a Home Inspection?

A home inspection is defined as a visual inspection of the readily accessible systems and components of a home and includes the determining whether systems are still performing their intended functions. The inspection and report are an invaluable service that provides you with an unbiased professional opinion of a property and can bring peace of mind when purchasing a home. The inspection is methodical and meticulous; designed to cover specific items that include:

• Roofing
• Exterior
• Structure 
• Electrical
• Heating
• Cooling
• Plumbing
• Insulation
• Interior 

A home inspection is not technically exhaustive meaning the inspection is purely visual. It does not identify defects that cannot be seen, such as problems hidden behind walls, ceilings or floors. The inspection cannot be responsible for finding conditions that may only be visible when storage or furniture is moved. It is important for clients to understand the limitations and conditions of a home inspection. Most home inspectors will provide a written document/contract to the client before the inspection that outlines exactly what is involved with a home inspection and require it to be signed before performing the inspection. The home inspection is designed to give the client the big picture when it comes to evaluating a house. The inspector is a generalist, not a specialist and it’s best to compare a home inspector to a general medical practitioner, as they would find something wrong with a patient and then send him/her to a specialist. The specialist in our case would be an electrician, plumber, roofing contractor, HVAC contractor, engineer and so forth. You could always opt out of a traditional inspection and bring in all the expert trades to inspect your potential property, but this would be very costly and will end up costing well over a $1000. This is why the home inspection industry exists, for a much lower fee you bring in one person who has a general knowledge of all. 

You also must remember that buying a home is probably the most expensive purchase you will ever make. This is no time to shop for a cheap inspection. The cost of a home inspection is very small relative to the value of the home being inspected. The additional cost of hiring an inspector is almost insignificant by comparison.

During the inspection, the inspector will take you step by step throughout the home and gladly address any questions or concerns that you may have. By attending the inspection, you will get a better understanding of the home’s overall condition and receive many helpful maintenance tips/advice.

The actual inspection usually takes 3- 4 hours, but every house/inspection is different and can vary in time. The inspection process should never be rushed and we find that having two home inspectors during every inspection allows for a more efficient inspection without compromising quality. It also allows us to provide you with on-site reports for clients needing a quick transaction. When the inspection is done we do a property review with you and answer any outstanding questions you may have. Our inspections are unbiased neutral opinions that have no interest in whether the real estate transaction goes through.

If you would like more information, please contact us at House CSI

Vermiculite Insulation

What Is It?
If you have never seen vermiculite insulating an attic, you may have seen it in potting soil. Vermiculite is a naturally occurring mineral worldwide. When heated rapidly to high temperatures, this crystalline mineral expands into low density, accordion-like, golden brown strands. In fact, its worm-like shape is what gives vermiculite its name. The worms are broken into rectangular chunks about the size of the eraser on the end of a pencil. In addition to being light, vermiculite chunks are also absorbent and fire retardant. These characteristics make it great as an additive, for example to potting soil. It also makes a good insulating material.

Sold under various brand names, such as Zonolite Attic Insulation, the insulation came in big bags. Thousands of homeowners simply opened the bags and poured the vermiculite onto their attic floor and sometimes down exterior walls. It was generally not used in new construction. 

What Is The Risk?
Asbestos minerals tend to separate into microscopic particles that become airborne and are easily inhaled. People exposed to asbestos in the workplace have developed several types of life-threatening diseases, including lung cancer. Workers in and around the Libby mine developed serious health problems. Like any hazards, length and intensity of exposure are major factors in the risk of asbestos-related respiratory illness. To assess the risk of asbestos exposure at a house, a sample of the vermiculite would need to be analyzed by a lab. Since most of the vermiculite used in Canada was taken from the Libby mine, the odds are quite good that there is asbestos in the vermiculite in Canadian attics.

The good news is that we don’t live in our attics. In addition, as long as it is undisturbed, neither the asbestos fibres bound up in the vermiculite chunks nor the dust will be released into the air. According to the National Institute for Occupational Safety and Health in the U.S., “Most people who get asbestos-related diseases have been exposed to high levels of asbestos for a long time.” Lastly, most of the time the air in your house flows from the house into the attic, rather than into the house from the attic. The bottom line is, like most household products that may contain asbestos, and there are many, doing nothing is often the best approach. Naturally, the risk of exposure increases with the amount of time spent in the attic.

Recommendations
If the attic or walls of a house contain vermiculite insulation, leave it alone. Avoid disturbing the material. Do not sweep it or vacuum it up. Do not store belongings in the attic. If work is planned that involves these areas, for example installing pot lights in a room below the attic, send a sample of the vermiculite to a private lab. Send several samples, and use a lab specializing in asbestos analysis. If it is found to contain asbestos, or if you just assume it does, precautions should be taken. The safest approach would be to have the insulation in the affected areas removed by a qualified environmental contractor. Make sure an the inspection firm makes frequent site visits if it is hired to assure that a contractor follows proper procedures and requirements. The inspector may recommend and perform checks after the correction to assure that the area has been properly cleaned.

For smaller jobs it may be sufficient to isolate work areas with temporary barriers or enclosures to avoid spreading fibers, use disposable protective clothing, and use proper respiratory protection. An important note – disposable respirators or dust masks are not appropriate for asbestos. Again, it is best to consult a qualified contractor or certified home inspector.

InterNachi Code of Ethics

The International Association of Certified Home Inspectors (InterNACHI) promotes a high standard of professionalism, business ethics and inspection procedures. InterNACHI members subscribe to the following Code of Ethics in the course of their business.

    

I.        Duty to the Public

                     1.        The InterNACHI member shall abide by the Code of Ethics and substantially follow the InterNACHI Standards of Practice.

                     2.        The InterNACHI member shall not engage in any practices that could be damaging to the public or bring discredit to the home inspection industry.

                     3.        The InterNACHI member shall be fair, honest, impartial, and act in good faith in dealing with the public.

                     4.        The InterNACHI member shall not discriminate in any business activities on the basis of race, color, religion, sex, national origin, familial status, sexual orientation or handicap, and shall comply with all applicable federal, state and local laws concerning discrimination.

                     5.        The InterNACHI member shall be truthful regarding his/her services and qualifications.

                     6.        The InterNACHI member shall have no undisclosed conflict of interest with the client, nor shall the InterNACHI member accept or offer any undisclosed commissions, rebates, profits or other benefit, nor shall the InterNACHI member accept or offer any disclosed or undisclosed commissions, rebates, profits or other benefit from real estate agents, brokers or any third parties having financial interest in the sale of the property, nor shall the InterNACHI member offer or provide any disclosed or undisclosed financial compensation directly or indirectly to any real estate agent, real estate broker or real estate company for referrals or for inclusion on lists of preferred and/or affiliated inspectors or inspection companies.

                     7.        The InterNACHI member shall not communicate any information about an inspection to anyone except the client without the prior written consent of the client, except where it may affect the safety of others, or violates a law or statute.

                     8.        The InterNACHI member shall always act in the interest of the client, unless doing so violates a law, statute or this Code of Ethics.

                     9.        The InterNACHI member shall use a written contract that specifies the services to be performed, limitations of services, and fees.

                  10.        The InterNACHI member shall comply with all government rules and licensing requirements of the jurisdiction where he/she conducts business.

                  11.        The InterNACHI member shall not perform or offer to perform, for an additional fee, any repairs or repair-associated services to the structure on which the member or member's company has prepared a home inspection report for a period of 12 months. This provision shall not include services to components and/or systems that are not included in the InterNACHI Standards of Practice.  

    II.        Duty to Continue Education

                     1.        The InterNACHI member shall comply with InterNACHI's current Continuing Education requirements.

                     2.        The InterNACHI member shall pass the InterNACHI's Online Inspector Exam once every calendar year. 

  III.        Duty to the Profession and InterNACHI

                     1.        The InterNACHI member shall strive to improve the home inspection industry by sharing his/her lessons and/or experiences for the benefit of all. This does not preclude the member from copyrighting or marketing his/her expertise to other inspectors or the public in any manner permitted by law.

                     2.        The InterNACHI member shall assist the InterNACHI leadership in disseminating and publicizing the benefits of InterNACHI membership.

                     3.        The InterNACHI member shall not engage in any act or practice that could be deemed damaging, seditious or destructive to InterNACHI, fellow InterNACHI members, InterNACHI employees, leadership or directors.  Member(s) accused of acting or deemed in violation of such rules shall be reviewed by the Ethics committee for possible sanctions and/or expulsion from InterNACHI.

                     4.        The InterNACHI member shall abide by InterNACHI's current membership requirements.

                     5.        The InterNACHI member shall abide by InterNACHI's current message board rules.

Humidity!

I truly believe that a home inspection is a great opportunity to educate clients on all aspects of the home. Many things we talk about during the inspection have nothing to do with the actual findings of the inspection, but more along the lines of proper home maintenance and what to expect as a home owner. Simple things like humidity are often forgotten about or just never really understood by home owners.  This is another great article from our friends at Carson Dunlop that explains humidity in the house, and what you should know.   

The outside winter air is cold and dry. The inside winter air is dry. Our chapped lips, dry skin and static zaps from doorknobs remind us of that all season long. Homes like the dry environment, but dry air makes people uncomfortable. While an ideal humidity for homes can be as low as 5%, people prefer about 60% humidity. And because people are more powerful than homes, we add humidifiers to have it our way.

Physics 101
If we asked Einstein what he thought about humidity, he might have said, “It’s all relative”. Of course, he said that about everything. We typically talk about relative humidity rather than absolute humidity. Relative humidity is the amount of water vapour in the air relative to how much vapour the air can hold before it condenses or rains. For example, a room with 4 pints of water vapour may have a relative humidity of 40%. This means we could have 10 pints of water in the air before the relative humidity reaches 100% and we get rain or condensation.

The interesting part is that if you cool down the air in a room but add no more water vapour, the relative humidity goes up. And, if you warm the air, the relative humidity goes down. This is important because the winter air outside is very cold and dry. When we bring the winter air into our homes and warm it up, we get really dry air in our homes. For example, outdoor air with 80% relative humidity at freezing temperatures will only have 20% relative humidity when we warm it to room temperature.

Do I need a humidifier?
If your house is new, you may not have a humidifier. You may not need one because the foundation and wood framing are still drying out, releasing moisture into the air. Also, new houses are “tight”, which means the air within them hangs around for a while before being replaced by dry exterior air. It hangs around long enough to pick up moisture from things like showers, cooking, drying clothes and breathing. By comparison, old houses are drafty. Cold, dry air is creeping in all the time, drying out the home as it flushes the warm moist air out.

An oldie, but still works great!

Do I have one?

If there is a small box like the one in the picture hanging from the furnace or ductwork beside the furnace with a small electrical wire and a small water hose attached, then YES. You may also see the humidistat, a dial that looks like the thermostat but is used to control the humidity level, and is often mounted to the basement ductwork.

A humidistat.

A drum type humidifier has a tray of water with a sponge barrel or drum rotating through it. The tray is kept full with a float switch, which allows water from the house plumbing to enter the tray when the water level drops. When the humidistat is turned up or the humidity level drops, a small electric motor rotates the sponge drum through the tray, absorbing water. Some of the air moving through the duct-work blows across the sponge, picking up moisture. This moist air moves through the ducts and into the rooms.

Cascade type humidifiers have no tray of water. A small electric valve at the top controls the water supply to the humidifier. When the humidistat calls for water, the valve opens, trickling water down a honeycomb-like metal pad. Air blows across the pad, picking up moisture. Excess water is drained through a hose to a floor drain, laundry tub, or condensate pump.

What do I do?
If you have a drum style unit, the tray of sitting water is your nemesis. Ponding water will cause scale build-up and bacterial growth. Every spring, the water supply pipe valve should be turned off, the tray and sponge should be cleaned, and the humidistat should be set to OFF. In the fall, turn on the water valve, and set the humidistat to 35%. We recommend a mid-winter cleaning as well.

If you have a cascade style unit, turn off the water supply and turn the humidistat to OFF in the spring. Before use in the fall, remove and soak the pad in de-scaling solution. If it is damaged or too clogged to clean, the pad can be replaced. Once the pad is back in place, the water supply pipe valve can be turned back on, and the humidistat set to 35%. This unit will not need cleaning again until next year.

How much is too much?
As we said, people like about 60% relative humidity. Unfortunately, houses have a hard time coping with this in cold weather. Too little humidity makes people feel uncomfortable. Too much can cause condensation, mould, mildew, and rot as the warm moist air hits cool surfaces. What confuses many people is that as the weather gets colder, we have to LOWER the humidistat setting, even though we want to raise it. This is because the colder it is outside, the easier it is for condensation to form on cool surfaces like windows. We can reduce condensation by lowering the interior humidity level.

Outside	Recommended House Humidity
-20°F	15%
-20°F to -10°F	20%
-10°F to 0°F	25%
0°F to +10°F	35%
+10°F and above	40%
Summer months	Off

Keeping an eye on the amount of condensation on your windows is another great way to gauge your house humidity level. You can also track things with a room temperature and humidity monitor, available at hardware and building supply stores.

Undertaking Home Repairs!

Check out this article from Carson Dunlop. Great info for new home owners, or established home owners looking to renovate. Nothing to do with home inspections.

Let's start by differentiating between a home improvement and a home repair. A home improvement, as the name implies, means improving something. It is usually a renovation to create more space, change the layout of the house, improve energy efficiency, or to make aesthetic changes. This report will deal with the simpler topic of home repair--basically replacing things that are worn out or fixing things that are broken. Here are some very basic rules to follow.

1.     Know what you want done 

If you are replacing a worn out furnace, for example, do some research to find out whether you want a mid-efficiency furnace or a high-efficiency furnace. If you are repairing a roof with a leaking valley flashing, determine whether you want the valley flashing replaced or just patched to last a few years until the whole roof needs re-flashing.

If you know what you want done, you can compare apples to apples when reviewing quotations. Otherwise it would be very hard to compare various quotes if every contractor has a different repair strategy.

Be prepared to stick to your guns. Many contractors will tell you that the job is much bigger, much harder, or it must be done his way (because if you don't, it will be dangerous or much more expensive the next time).

As home inspectors, we are often faced with contractor opinions that differ drastically from the recommendations in our reports. In most of these cases, the contractor is proposing unnecessary work. 

2.     Find at least 3 experienced, reputable contractors who are capable of doing the work 

This may sound easier than it is. While it is best to rely on personal referrals from people you trust, these referrals must be taken with a grain of salt. Former customers of contractors are not usually in a position to comment on the quality of the installation of a furnace, for example. Also be sure the type of work that you are planning to have done is similar (in size and scope) to the work done for the person providing the referral. Many contractors who are geared to do major renovations are not well suited to do minor repairs and vice versa. 

3.     Obtain 3 written estimates 

Our experience has shown that contractor’s quotes can vary as much as 300% on any given job. This is sometimes due to different perceptions of what needs to be done. This can be avoided by following Step 1 carefully. However, sometimes the variance is simply the result of how busy the contractor is. 

4.     Get three references from each contractor 

Better than three references is a list of the recent clients that the contractor has worked for. That way you get to choose who you would like to select as a reference. Follow up with these references bearing in mind the comments in Step 2.

While you are at it, ensure that the contractor has appropriate licenses and insurance. 

5.     Choose the contractor 

Don't necessarily base your choice on price alone. Look carefully at what has been included in the estimates. Select the contractor with the best reputation, provided that the price for the job is fair. Avoid paying cash. The benefit of a cash deal is typically far greater for the contractor than it is for the homeowner.

6.     Have both parties sign a contract 

The contract should include a complete description of the work. It should also include details as to who is responsible for obtaining permits (if there is any doubt regarding the necessity of a permit, contact your local building department).

The contract should have a start date and a completion date. (On larger contracts, sometimes a penalty clause is included for each day the job extends beyond the completion date.)

The contract must also contain a payment schedule. The schedule should not demand very much money up front and the payment should be based on stages of completion as opposed to pre-determined dates.

Remember to hold back 10% of each payment for 45 days after the completion of the job to determine whether any liens have been placed on the property (as a result of the contractor not paying his sub-contractors).

Also, don't expect much in the way of a guarantee if you are simply asking a contractor to undertake band-aid repairs. Many contractors will not simply patch a damaged valley flashing, for example, even if they are 95% sure that the repair will work. This is because there is still a 5% chance that they will get complaints to fix a subsequent leak. In fairness, the leakage is not their fault. They just do not want the hassles. Consequently, many contractors will suggest repairs which are overkill (replacing the entire side of the roof, for example) to reduce the potential for complaints. A significantly lower price can be obtained, if you explain to the contractor that you expect him to do his best, but you aren't going to make him responsible for the future of the entire roof based on a $300 repair. 

7.     Expect delays 

Any type of home repair seems to take longer than was first predicted. If the repairs involve any sort of interior demolition, expect divorce dust. 

8.     Have contingency funds 

Many home repairs end up unearthing something else that requires repair. While this is very common, ask lots of questions if your contractor is proposing additional work.

We trust that the above information will help people in their dealings with contractors, realign expectations, and perhaps avoid pitfalls. 

A Typical Home Inspection Contract

Here is an example of standard home inspection contract. Pretty much all home inspection companies use a contract like this or similar and will not perform an inspection without having this signed by the client. Great info for those that don't know exactly what a home inspection is.

Limitations and Conditions of the Home Inspection:

These limitations and conditions explain the scope of your home inspection.  Please read them carefully before signing the agreement.

The purpose of your home inspection is to evaluate the general condition of a property. This includes the determining whether systems are still performing their intended functions. There are limitations to the scope of this inspection.  It provides a general overview of the more obvious repairs that may be needed.  It is not intended to be an exclusive list.  The ultimate decision of what to repair or replace is yours.  One homeowner may decide that certain conditions require repair or replacement, while another will not.

The home inspection provides you with a basic overview of the condition of the property.  Because your home inspector has only a limited amount of time to through the property, the inspection is not technically exhaustive.  Some conditions noted, such as foundation cracks or other signs of settling in a house, may either be cosmetic or may indicate a potential problem that is beyond the scope of the home inspection.  If you are concerned about any conditions noted in the home inspection report, we strongly recommend that you consult a qualified licensed contractor or engineering specialist.  These professionals can provide a more detailed analysis of any condition noted in the report at an additional cost.

A home inspection does not include identifying defects that are hidden behind walls, floors or ceilings.  This includes wiring, structure, plumbing and insulation that are hidden or inaccessible.  Some intermittent problems may not be obvious on a home inspection because they only happen under certain circumstances.  As an example, your home inspector may not discover leaks that occur only during certain weather conditions.  Home inspectors will not find conditions that may only be visible when storage or furniture is moved.  They do not remove wallpaper, look behind pictures or lift flooring (including carpet) to look underneath.

The inspection does not include hazardous materials that may be in or behind the walls, floors or ceilings of the property.  This includes building materials that are now suspected of posing a risk to health such as phenol-formaldehyde and urea-formaldehyde based products, fibreglass insulation and vermiculite insulation.  The inspector does not identify asbestos roofing, siding, wall, ceiling or floor finishes, insulation or fireproofing.  We do not look for lead or other toxic metals in such things as pipes, paint or window coverings.  The inspector does not deal with environmental hazards such as the past use of insecticides, fungicides, herbicides or pesticides.  The home inspector does not look for, or comment on, the past use of chemical termite treatments in or around the property.

We are not responsible for, and we do not comment on the quality of air in a building.  The inspector does not try to determine if there are irritants, pollutants, contaminants, or toxic materials in or around the building.  The inspection does not include spores, fungus, mould or mildew, including that which may be present behind walls or under floors.  You should note that whenever there is water damage noted in the report, there is a possibility that mould or mildew may be present, unseen behind a wall, floor or ceiling.

The home inspector does not look for and is not responsible for fuel oil, septic or gasoline tanks that may be buried on the property.  If fuel oil or other storage tanks remain on the property, you may be responsible for their removal and the safe disposal of any contaminated soil.  If you suspect there is a buried tank, we strongly recommend that you retain a qualified Environmental Consultant to determine whether this is a potential problem.

We will have no liability for any claim or complaint if the conditions have been disturbed, altered, repaired, replaced or otherwise changed before we have a reasonable period of time to investigate.

I have read, understood and accepted the above Limitations and Conditions of this home inspection.

Signed: ____________________________________________________________ Date: ___________________________