Thread: Home inspection limits scuttled - News & Observer

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Home inspection limits scuttled
News & Observer, NC - Nov 10, 2007
State regulators on Friday reversed a decision to streamline home inspection reports, dealing a rare setback to the powerful real estate industry. ...



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That is great news for inspectors everywhere and bad news for Realtors who want to work against the interests of the consumer for their own gain.

From the article posted above:

"Members of the state board that licenses home inspectors voted Friday to reject, for now, a rule change that would have prevented home inspectors from recommending upgrades and safety repairs for homes in the summary section of their reports. Opponents say the real estate industry wanted the change to reduce home inspectors' potential to delay or derail home-sale closings amid a nationwide housing slump."

Nice to know the agents have their client's best interests in mind...

Also from the article:

"Supporters of the measure, led by real estate agent John Hamrick, who began the effort two years ago when he was chairman of the board, said the change would benefit consumers by standardizing all reports and making information uniform and readable throughout."

This should read:

...benefit agents by blindsiding the home buyer into increasing the agents income at the expense of the consumer.

Sometimes all I can do is shake my head.

Eric

It's nice to see the right thing happen with legislation once and a while. This legislation would have been a real estate agent's dream, and a home buyer's curse. In fact, it could have eliminated home inspections all together, which would have not been good for the home buyers in North Carolina. It is amazing what money will get some people to do.

I don't believe the decision solved the real problem in North Carolina though. As I understand it the Standard Purchase agreement used by Realtors in NC limits what a buyer can use to get out of the agreement to "Existing Conditions" and items listed in the agreement, set dollar amounts, etc.

If an Inspector were to say that a Roof or HVAC system might need to be replaced within a few years, the buyer would not be able to back out or negotiate with the seller even if the repairs/replacements were to cost him thousands of $$$$ within a few years. It seems the Realtor Association in NC has already done much to protect themselves from "Deal Killers", they said the HI Inspection Reports should be standardized to protect the buyer, wouldn't the buyer be better protected by the Realtors changing THEIR Standardized Forms?

Originally Posted by Lewis Capaul

If an Inspector were to say that a Roof or HVAC system might need to be replaced within a few years, the buyer would not be able to back out or negotiate with the seller even if the repairs/replacements were to cost him thousands of $$$$ within a few years.

That's not a real estate agent problem, that a home inspector afraid-to-call-it-as-defective-now problem. When the home inspector gets enough courage to call it as defective 'now', that problem will go away.

I'm not disparaging any or all NC home inspectors singly or in whole, just stating that if they do that, where is the problem, ... and if they do not do that, the problem is themselves.

Originally Posted by Jerry Peck

That's not a real estate agent problem, that a home inspector afraid-to-call-it-as-defective-now problem. When the home inspector gets enough courage to call it as defective 'now', that problem will go away.

I'm not disparaging any or all NC home inspectors singly or in whole, just stating that if they do that, where is the problem, ... and if they do not do that, the problem is themselves.

That's hard to do sometimes Jerry, if I say that a roof needs replacing NOW, the seller may get a Roofer who will say that there is 5 more years left in it. Then according to the NC Standard Purchase agreement the buyer will not be able to back out and the Inspector may end up in a long legal pi$$ing contest as to who was right. Either way the buyer is screwed, he can't choose to believe his inspector without getting into a battle with the Seller and Realtors.

I believe a buyer should be able to back out of a deal for any discrepancy or faulty condition the inspector finds and the Seller refuses to repair or renegotiate, NC buyers have to be fools to sign the Standard Agreement. But then maybe its all in one of those fine print paragraphs on the back of the form that nobody reads they just initial, kind of like up here where a fine print statement on the back of the agreement says that the Seller or buyer, understands that the Agent represents both, I always scratch that out.

The point I was making is that if the Realtors truly wanted to protect the buyer and not the Sale they would change their own Standard Forms instead of attempting to weaken the Home Inspector's Report.

Originally Posted by Lewis Capaul

That's hard to do sometimes Jerry, if I say that a roof needs replacing NOW, the seller may get a Roofer who will say that there is 5 more years left in it. Then according to the NC Standard Purchase agreement the buyer will not be able to back out and the Inspector may end up in a long legal pi$$ing contest as to who was right.

No, the home inspector is required to give their professional opinion based on their best knowledge.

The roofer is ... never mind about the roofer, if the agent hired him the roofer is going to accept the roof.

Have the roofer *guaranty the roof for 5 years*. That stops all arguments and debates, unless the roof will not do that, in which case it still stops all arguments and debates because it shows the roofer does not believe what he/she is saying.

However, you said "within a few years" first, which (at least to me) is 'less than 5 years'. But the above covers it anyway.

No pissing contest - the roofer either guarantees the roof or he does not believe what he is saying, and no one else should either.

In NC if a component is "providing it's intended function and not in need of immediate repair" then it is acceptable as far as the inspection goes.. You can advise a client about the normal life of equipment but you can not say it needs replacing if it is "providing it's intended function and is not in need of immediate repair".

The licensure board here is a joke. It is controlled by the real estate industry. I think there are more people on the licensure board with real estate licenses than actual home inspectors. The only reason the rule change was reversed was because of a huge PR push by local inspectors. They had every intention of passing the rules changes until the local news cameras showed up to the board meeting.

This fight is long from over. If anyone reading this is located in NC and not active in NCLHIA or ASHI or some other local group, you need to get off your arse and attend some local meetings. We need to all work together as inspectors to join this fight.

But..... I thought licensing SOLVED all of our problems like this????

Say it ain't so. Licensing actually CAUSES problems and gives Realtors more power over us?

So FABI and NAHI lied to us??? Wow, I for one am shocked.

I am all for licensing because it makes what I do more exclusive. Without licensing anybody with a ladder and a truck can call themselves a home inspector. If you look at the lower licensing numbers in NC you will see a lot of folks who were grandfathered. This was not a good thing!

Most other trades in NC have licensing and this has led to a group of very component contractors. The NCHILB is still full of politics so they are not very effective. Once they get to the level of the electrical, plumbing, and heating broads they will be a help to the profession.

In my opinion right now the NCHILB has a good program in place but is being led by Realtor friendly folks.

IF given a choice, I would recommend pushing for any control over home inspectors to be in the same board that licenses other professionals, NOT under the control of realtors. The fox should not be guarding the hen house. Realtors have enough power in most legislatures without having direct control over inspector rules and regulations.

Originally Posted by Matthew Bartels

This fight is long from over. If anyone reading this is located in NC and not active in NCLHIA or ASHI or some other local group, you need to get off your arse and attend some local meetings. We need to all work together as inspectors to join this fight.

Thank you Matt, you are right on target. If any NC Inspectors are reading this and are NOT involved in either NCLHIA, NC ASHI or both, WAKE UP! This proved that when we work together good things can happen. The same applies to Inspectors inother states. If you are not politically involved you are at the mercy of those who are. If Inspectors sit on their hindquarters waiting for someone else to do the work for them they get what they deserve. Unfortunately our clients will not.

Originally Posted by Fred Herndon

The same applies to Inspectors inother states. If you are not politically involved you are at the mercy of those who are. If Inspectors sit on their hindquarters waiting for someone else to do the work for them they get what they deserve. Unfortunately our clients will not.

The road to hell is paved with good intentions... If what you say is truth then it might be reflected in the vast benefit that inspectors, homeowners and the general public has obtained since the inception of state licensing, but to this day at best all we can readily determine is that home inspector licensing is just another veiled tax that benefits no one but the keepers of the national exam.

Oh yes, we will all someday be licensed and in the course millions of dollars will be sucked out of our profession and all of the problems will remain along with a host of new ones. Thus far licensing has failed to bring forth any edible fruit for either the home inspection profession or the public and I see nothing that will come along to change that fact.

Of course you are free to believe what you will and squander your resources as you see fit, but when it is all over and you are poorer and bound to the Real Estate industry and worse off for all your efforts, you (like a cigarette smoker who develop lung cancer) will have no one else to blame but yourself.

Originally Posted by Joseph Burkeson

The road to hell is paved with good intentions... If what you say is truth then it might be reflected in the vast benefit that inspectors, homeowners and the general public has obtained since the inception of state licensing, but to this day at best all we can readily determine is that home inspector licensing is just another veiled tax that benefits no one but the keepers of the national exam.

Oh yes, we will all someday be licensed and in the course millions of dollars will be sucked out of our profession and all of the problems will remain along with a host of new ones. Thus far licensing has failed to bring forth any edible fruit for either the home inspection profession or the public and I see nothing that will come along to change that fact.

Of course you are free to believe what you will and squander your resources as you see fit, but when it is all over and you are poorer and bound to the Real Estate industry and worse off for all your efforts, you (like a cigarette smoker who develop lung cancer) will have no one else to blame but yourself.

Fred did not say he was for or against licensing. He said if there is licensing in your state and you are not actively involved in defining that licensing, then you deserve what you get.

There is already licensing in North Carolina. Inspectors as a whole are not terribly pleased with the licensure board or the direction it is taking. Fred is suggesting taking the battle directly to the board. For instance, the NC licensing board has formed a committe to standardize the report. Why not volunteer to be a member of that committe and help to design the legislation so that it is HI friendly.