Yesterday I had an inspection with a concerned, very nice young single mother who bought a 4 year old foreclosure. She moved in about a week ago. She noticed things with the house.
Her agent told her that since she was obtaining a Veteran's Administration loan, the VA would do an "inspection" and she didn't need to have a home inspection.
The VA inspector/appraiser told her the same thing.
Well, she should have had an inspection! Had she my list in hand for the VA guy he could have required lots of things for the bank to do prior to her occupancy. Things apparently he knew nothing about. Now, they are all her problems.
I spent a lot of time with her teaching. She needed it. There are many fixes needed and she should get right on them. Her family can help, so she is in luck there. Fortunately she lives only a mile from us and my wife will make sure she is taken care of.
At the end of the inspection I got a hug and kiss on the cheek! She called me "awesome!" That does not happen very often. She now knows what she needs to do and where to go for help. And she can count on me... Peace of mind is worth a million bucks!
My recommendation: get a home inspection!
Jay Markanich Real Estate Inspections, LLC 
Based in Bristow, serving all of Northern Virginia.
Office (703) 330-6388 Cell (703) 585-7560
Wow! Jay, you were the upright guy doing the right thing. I think that is shameful that others told her not to get an inspection. I've also worked with agents who think they will be "liable" if they attend an inspection with their client and again, I think that flies in the face of the kind of counsel we are to provide clients. Janice Roosevelt, Ecobroker, ABR, e-PRO KEeller Williams
Jay,
I think a lot of agents confuse the VA appraisal (which requires certain inspections) with a full inspection.
It's not good risk reduction to advise a client to forgo a full home inspection, but plenty of agents do it.
EVERYONE NEEDS A HOME INSPECTION. THEY ONLY TIME CLIENTS DON'T IS WHEN THEY CANNOT AFFORD IT. I TELL THEM THEY CANNOT AFFORD NOT TO HAVE ONE!
I tell everyone of my clients to have inspections. Its the little nickle and dime stuff that adds up to big money.
Good Morning Jay,
My clients did have a home inspection. That inspection from someone that who has performed several inspections for me and my clients. So I know his work.
When the VA Appraisor came to the house. Much to my surprise, many of the items that the inspector called the appraisor slide over. Things like a roof that is worn out. A garage entry door that is not 20 minute fire rated and also damaged.
Least to say, it did not go the way I expected.
Thanks for your article
You should always do an inspection, its not worth the risk. Great post I have heard of a similar story, its sad..
Jay, It really seems as if bank owned properties are the worst. The house has been neglected because the bank is not going to put money into it and the home owner is not, so you wind up with one mell of a hess...
What kind of agent would advise such a thing? A VA appraisal is not an inspection. Period. I also hear/read agents advising clients banks will not make repairs, which is another urban legend. I have had no problems negotiating repairs on REO properties; it's best to prepare your client for worst case, of course, but I'm constantly appalled at the lack of representation many clients have when they are entering into a home purchase with agents who either don't know what they are doing or prefer to avoid negotiations of any kind.
IMHO, if someone cannot afford a home inspection, they cannot afford to buy a home.
EVERYONE SHOULD HAVE A HOME INSPECTION NO MATTER WHAT THEY ARE BUYING, EVEN IF IT IS A NEW HOME!
Everyone needs a caring realtor like yourself guiding them. They also need to take the advice of the professional only looking out for their best interests. Most will, a few will not! They pay the price on occasion.
Excellen post, Jay. Its hard to believe some people would make their largest investment WITHOUT an inspection. And doesn't it feel great to be called, "Awesome"?
Preachin' to the choir here! A good inspector is key to every real estate transaction ...perhaps I will blog that!
Jay - My company actually has an additional form that we get signed that is all about inspections and why you should get one done. On a foreclosed property I would want one even more if I were buying. Foreclosures have had a lot of nightmare stories of owners doing some terrible things to the house before the bank took possession (ever hear about the homeowner's who were flushing dry conrete mix down the toilets?). The VA does "inspect" their homes well, looking for their peace of mind, but I still wouldn't classify it as an inspection and would still seek an independent third party inspector. Its good to hear that you're looking out for her and teaching her. I think consumers can always use a bit more education on what we all do and why we do it.
Keep in mind, that with many bank REO, you're buying AS IS. The inspection is critical BEFORE you make your offer. Once the bank accepts your numbers, good luck getting them to back down for finding something after agreement, but before close. Once your closed, its now your problem.
All in the name of saving a few hundred dollars!
Inspections are the cheapest insurance out there for exisitng homes.
I build new "green" homes, and I counsel my clients to get the soils tested and the foundation engineered to match the soil and house design. Again, cheapest insurance. Sure, it adds several thousand dollars, but it ensures that the house will be solid.
Good post.
Jay- Good piece. I agree that just about everybody should have a home inspection, and I encourage all my buyer clients to do so. I think part of the reason, and this is just my opinion of what I see, why some agents discourage them is that home inspectors try to play real estate agent. "Had she my list in hand for the VA guy he could have required lots of things for the bank to do prior to her occupancy." For me I'm not a home inspector, so I'm not going to tell my buyers the condition of the home, but I also don't like home inspectors trying to give negotiating advise to my buyers. Great work for your client!
In California, we have a form as pages 9 -10 of our purchase contract that is titled "Buyers' Inspection Advisory." It explains all the reasons that you should have an inspection, and just stops a little short of saying that you are stupid if you choose not to!
I dont know why an agent would tell her not to get one no matter if the VA is doing one or not.
As a buyer it's always a good idea to have a home inspected prior to purchase. It is their (buyers) choice. However, making that choice based on mis-leading information from inexperienced or irresponsible agents adds yet another problem to the situation. Although V.A. appraisers sometimes believe they are inspectors and sometimes do make completion of the appraisal conditional on repairs they are not inspectors.
Gene Quinney
Hi Jay:
Good job! Now you are the realtor that she will tell all of her friends and family.
Absolutely, always have a home inspection.
We actually have a form that needs to be signed off on, if a buyer chooses not to have one. I clearly states that everyone should have an inspection, etc. etc.
ALWAYS, ALWAYS, ALWAYS, obtain a Whole House Inspection. Even if the seller is your best friend, brother, sister-in-law, boss, minister, son's baseball coach, stylist, dentist, child's principle, yes even your mother. ALWAYS, ALWAYS, ALWAYS, obtain a Whole House Inspection. Yes, most buyer's use the ispection to obtain additional knowledge of the property they are buying and usually will use it to have the seller replace/repair defects in the home. You don't HAVE to do anything with the information the inspection provides you. If the seller is your sister-in-law or your mother etc. you probably won't request any "fixes" by them. You can simply use it as your fix-it list. But at least you have much better knowledge of what you are buying. They also may uncover something VERY wrong with the home, in that case, I'll let you tell mom.
I would never sell a house without a home inspection. I also attend home inspections whether I represent the buyer or seller. It is part of our service as a Realtor! A good home inspector is a Realtors best friend. Thank you for doing the right thing.
Jan Brown
Associate Broker,GRI
Keller Williams Arizona Living Realty
EVERYONE needs a home inspection. EVERYONE!!!
For the last few years we have insisted that our clients have the home inspected during the due diligence phase. Then we pay for it at closing instead of a gift of some kind.
When listing a home we strongly encourage the sellers to have an inspection and fix the things that can be fixed and then evaluate the other items so that the listing price reflects their concern.
Revealing the repaired items, and acknowledging the homes flat spots with a deduction built into the price has become an effective marketing technique.
Thanks Jay for reminding all of us that it's not just about listing and closing. There are important steps in between.
I'm a real estate broker and that's my advice too. GET AN INSPECTION. In fact when clients buy without one, in my office, they will signing a hold harmless letter saying they went against our advice and choose not to have an inspection. CMA
Oh my Jay..... Who would ever tell someone they don't need a home inspection.... That is just as bad as someone saying you would not need title insurance. I recommend the home inspection just as I do title insurance. Both are important
I think that any buyer should get a professional inspection, even if your buyer thinks they "know it all", a second set of experienced eyes looking over the home is the only way to go.
Jay, in my real estate career I only remember two instances where the buyer did not have an inspection. Both were investors who knew what they were doing and essentially did their own inspection.
For new construction, I often advise people to wait six to nine months and then have an inspection and use it to take advantage of the builder's first year warranty. This approach also gives them the opportunity to discover possible faults themselves. Builders here in Texas have also been advising the same hoping to get a coprehensive one time list and be able to fix everything at once rather than getting a call a week for an individual item from the buyer. For build jobs I usually advise that the buyer consider having a framing, electrical,plumbing and HVAC duct inspection prior to sheetrock. Sheetrock can cover a multitude of sins.
Jay, I agree, they should get a home inspection BEFORE buying, not after. Even if it's a new home.
Why in the world would anyone spend hundreds of thousands of dollars for the biggest purchase of their life and not even get it checked out first? That's beyond me.
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Regina P. Brown
Allison James Estates & Homes
www.ReginaBrown.AllisonJamesInc.com
Even if the bank is not going to do a single repair, it is always best to get a full professional inspection so you know what you are getting into. The only time I've never had a client do an inpsection was when they were in the contracting business and new everything that was wrong with the house anyway.
Oh my - we always recommend a home inspection -- no matter what.
I think it easier for the VA guy to get away with his comment but definitly not too cool for the Realtor to say something like that. I would rather err on the side of caution then to find out there were problems that would have been easily detected by the home inspector...Always recommend a home inspection! You guys who do this job honestly are worth your weight in gold!!!
Jay, congrats on the feature----the first of many I am sure.
Those agents who do not know the difference between an inspection and an appraisal is just another indicator of how far down the rabbit hole we have gone in the way of education and professionalism.
It is true that the home must conform to "certain" criteria when a VA loan is being obtained, the appraisal is in no way an inspection of the home.
Even though the property was a foreclosure and it is extremely unlikely that the Bank would have repaired anything, the Buyer should have been walking into the home with her eyes open and aware of the items needing attention, and she should have had the right to terminate her contract if those items were too big for her to handle or be comfortable with.
Of course that would have meant the starving agent dealing with her could have lost his/her commission which should probably be taken into account if she chooses to look for damages.
Come-On Agents,... the public deserves better than this,.. they trust us and our advice,... let's each of us resolve,.. from this point forward to be the kinds of people deserving of that trust
Jay,
This is an epidimic!
People who want to skimp on "paying" for an inspection will ultimately pay on the back-side(literally).
Sorry folks, inspectors are not mere middle-men, but lifelines to the truth.
Wow this story really lit my fuse! What terrible advice from an agent. First of all, this buyer needs to call the agent on the carpet for such costly advice. Second of all, for anyone who may be confused about this issue, there is no such thing as a "VA inspector/appraiser". The appraiser is only approved by VA to perform appraisals based on VA guidelines. The appraiser DOES NOT WORK FOR VA!! Appraisers are independent contractors who receive orders for appraisals from lenders. The appraiser may also be performing appraisals for FHA loans and conventional loans. There is NO inspection by the appraiser. NONE. EVER! The agent may have been confused about FHA loans where the appraiser was required, in the past, to do a "mini inspection" of the home, but this is NO LONGER required either. Lastly, an inspector is licensed (at least in Texas) to perform INSPECTIONS. That's what they do. Appraisers are licensed to value properties NOT inspect properties. FYI when doing a VA loan, you may NOT select your appraiser. The lender submits the order to the VA system and the next VA approved appraiser on the list gets the order. Luck of the draw. Get an inspection, period. Never advise someone to buy without one.
Awesome is right. Everyone, every buyer, should get a home inspection. There are issues even with new construction, sometimes serious ones.
Have you heard of this firm: <a href="http://www.therealestatepro.net" title="">The Realestate Pro's</a>
Mark, Just curious...why do you ask?
Hi Jay!
I can't imagine a Realtor that would give such poor advice. I do think the buyer should give the agent's broker a call...the broker needs to know the kind of liability the agent is putting him/her in! Inspections are a must...and I always tell my clients that their "best-friend" contractor, their "handy" dad or their buddy is NOT an inspector. They need to hire a professional.
A story with a happy ending. I can't believe how many buyers still aren't convinced to get a home inspection.
I suggest inspections for everything!!! Condos, new construction, commercial.... Why wouldn't you?
I hear that line all the time, but from buyers...I can't believe an agent would ever say that!
I've bought two VA foreclosures...and I got inspections on both. I ALWAYS push my clients to inspect. Most of the time, they are very glad they did. IF nothing is wrong...they can buy with peace of mind. IF something is wrong...we can get the seller to address it. WIN WIN!! GBU~
Hi Jay,
Good post.
If somebody is kaing a couple of hundred thousand dollar investment, how can they not pay $400 for an inspection.
This is just good business sense. :)
I agree that everyone that buys a house should have it inspected. It's one of the biggest investments of a lifetime.
As a broker, you want to know if there are hidden defects..so welcome the home inspection! Better before the sale rather than a phone call after it closes..oh oh....sinking feeling comes in as the laundry list of problems spill out that you did not catch!
Act in haste, repent at leisure. ALWAYS have a home inspection with an experienced inspector!!
How much she must have appreciated someone like you!
It always amazes me that someone will not do any research on an inspector for the biggest investment they can make. Sometimes the difference in cost is the price of a pizza.
I have not met a VA appraiser who is qualified to be a home inspector or one who even does a home inspection. Heck most of them in my area are VA appraisers because the banks would never use them.
Jay,
This is so true, we hear this about VA appraisers time and time again. Especially with foreclosures that are often neglected and not taken care of, it is necessary to get an inspection. It is amazing that people often skip one of biggest steps in the homebuying process that is in their very own interest. Great story, that woman is one of the lucky ones!
Thank you everyone for your insightful and pertinent comments! I am overwhelmed at the response!
I am very busy and have been and I apologize if I do not get back to each of you individually. I did not know that the VA does not provide bona fide inspections. Now I am even more disturbed by my client's circumstance. She mentioned who her realtor was, but I did not recognize the name. But I think that barn door was left open. Here she is...
My understanding is that in my area approximately 70% of homes are inspected prior to occupancy. I would have thought it higher, but that is what I understand. There are more problems with new homes, in my opinion, than most older homes. Foreclosures are very unpredictable as to condition.
Thank you again. I have been on AR for 5 weeks or so. It is a very enjoyable experience. I have met some wonderful people and have read some wonderful posts. Thank you!