The Real Deal, April 28, 2017 - "One of every 20 sales contracts blows up along the road to closing. And roughly one of every four runs into an issue that delays the scheduled settlement.
These statistics come from new survey research conducted by economists at the National Association of Realtors, covering the period of December 2016 through February 2017.
Guess what’s the No. 1 real estate deal killer? Home inspections. Nearly one third of all terminated real estate contracts crashed and burned because of the inspection results. Inspections also ranked as the No. 3 cause of delayed settlements, accounting for 13 percent.
Many or most of those deal-killing or delaying inspections probably turned up legitimate defects that the buyers needed to know about. But some went a little too far."
Tres Pinos Home Inspection is committed to performing an objective home inspection that reports facts and does not state opinions or make predictions. In accordance with InterNACHI Standards of Practice, my reports do not attempt to determine the life expectancy of the property or any components or systems therein; they only report observed conditions on the day of inspection. Instead, my reports include an InterNACHI chart which details the predicted life expectancy of appliances, products, materials, systems and components in general.
I do not report on aesthetic concerns or what could be deemed matters of taste. Wherever possible, I point buyers and sellers to available sources of information so they can evaluate the findings in the inspection report. For example, rather than seeing this in a report:
"The GFCI outlet to the left of the kitchen sink does not work and should be replaced. This is a Life Safety Hazard."
You will see something like this:
"The GFCI outlet to the left of the kitchen sink does not work as designed. This is a safety concern which can normally be resolved by replacing the outlet. Outlets sell for around $20.00. Electricity is dangerous, so consult a professional and leave the work up to them. Information on what GFCI outlets are and how they work can be found here: https://simple.wikipedia.org/wiki/GFCI"
The first statement does not let the buyer know exactly what the problem is or how serious it is. They may believe the home's entire electrical system is faulty and unsafe. My reports aim to let the buyer know exactly what a report finding means to them.
In 2016 first time buyers accounted for 35% of home sales. For them, being handed a 40 or 50 page home inspection report is usually frightening and overwhelming. Their first thought is, "Wow! There must be a lot wrong!" That is why the first line in my report says:
"Though lengthy, this report contains ("NO", or number of) items identified as a Material Defect. A material defect is an issue with a system or component of the property that may have a significant, adverse impact on the value of the property, or that poses an unreasonable risk to people. The remainder are items that need maintenance, repair, or replacement. Many of these are easily and inexpensively corrected."
The definition of a Material Defect is taken directly from the InterNACHI Standards of Practice. My reports are written to provide the information buyers need in order to know whether they need to worry about something or not. If something is minor, easy and inexpensive to fix, my report will say just that.
I will never gloss over or minimize a serious home defect; neither you nor your client wants that. My goal is to fully inform and educate the buyer while not causing undue or unnecessary alarm, and I am always available to discuss my report with you and your client.
Please take a look at my Sample Report.