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  #1 (permalink)  
Old 08-05-2008, 06:53 PM
imported_John Smith imported_John Smith is offline
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Texas FSBO's and Disclosures
I seem to have been getting a lot of FSBO business lately. I havent had any issues yet, but Im thinking when transactions are conducted without real estate agents, problems can arise that could potentially impact my business.

I assume the same disclosure form (TREC OP-H) is required to be completed if an agent is involved or not.


I have always asked clients/agents in the past about disclosure findings, but they never actually show them to me. Should I be requesting them? Seems like if there have been past problems, they should be brought to the HIs attention so they can see if there is any recurrence or other problems.

Your thoughts/opinions?
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Old 08-05-2008, 07:46 PM
Ted Menelly Ted Menelly is online now
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Re: Texas FSBO's and Disclosures
Quote:
Originally Posted by imported_John Smith View Post
I seem to have been getting a lot of FSBO business lately. I haven't had any issues yet, but I'm thinking when transactions are conducted without real estate agents, problems can arise that could potentially impact my business.

I assume the same disclosure form (TREC OP-H) is required to be completed if an agent is involved or not.


I have always asked clients/agents in the past about disclosure findings, but they never actually show them to me. Should I be requesting them? Seems like if there have been past problems, they should be brought to the HIs attention so they can see if there is any recurrence or other problems.

Your thoughts/opinions?
The reality is, why do you even need disclosure statements from anyone. You are there to inspect the home as to how you see it at the time of inspection. If something is disclosed to the buyer they can refer to your inspection and to the disclosure. What will a disclosure do for you. If there was a leak some where and was fixed. Well it either is or is not leaking now. If the HVAC system is operating in a particular fashion now. What would it have to do with its operation before you got there.

Just curious. I know a lot of people want to see disclosures or previous inspection reports or an engineers report on a foundation. If you find signs of movement of the foundation (cracks in the foundation, bricks, drywall, doors out of square) you write them up. If you don't see any signs you don't write them up.

Seriously, I am not questioning you but really just curious why people want to see the past. You are there now. I tell sellers, Realtors and such all the time that I do not want to see them. I do not want any influence on my findings.

Just curious
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Old 08-05-2008, 08:52 PM
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Rick Hurst Rick Hurst is offline
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Re: Texas FSBO's and Disclosures
I do the same as Ted mentioned. Don't want to see the disclosure's. Prior Engineers reports, termite warranties, receipt for the 20yr. old oven, I just don't need them.

Had an agent give me an HI report today that was dated 3 yrs. ago on the home and tell me that it might help me speed things up. I politely handed it back to her and asked her did she use the prior sales contract over when she listed the home. I asked her had the price changed within the (3) yrs.

She got the hint.

rick
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Old 08-05-2008, 11:03 PM
Jim Luttrall Jim Luttrall is offline
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Re: Texas FSBO's and Disclosures
I very seldom see a disclosure, I might glance at it if it is available but most disclosures are flat out lies.
An engineers report carries a little more weight, but rarely influences my report.
From what I have seen of engineers reports when I have recommended them, I wonder what planet they are on, much less if they are looking at the same house.
An old report is worth even less unless it documents the repairs made.
FSBO is just the same as with a realtor except the seller is usually at the inspection.
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Old 08-06-2008, 12:42 AM
Ron Bibler Ron Bibler is offline
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Re: Texas FSBO's and Disclosures
I see some sellers/FSBO's are putting in there discloures papers to see the inspection report for any information.
thats why the get the pre-inspection reports.

Best

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Old 08-06-2008, 03:37 AM
imported_John Smith imported_John Smith is offline
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Re: Texas FSBO's and Disclosures
Why would you not want to see the past history of the property if it is available? If you went to your physician, would you want them to not know anything about your past where it could help them with their diagnosis?
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Old 08-06-2008, 07:55 AM
Richard Stanley Richard Stanley is offline
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Re: Texas FSBO's and Disclosures
Seller disclosures and previous in$pection reports are none of my business - unless I'm the buyer.

Last edited by Richard Stanley : 08-06-2008 at 07:55 AM. Reason: sp
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Old 08-06-2008, 08:18 AM
Ron Bibler Ron Bibler is offline
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Re: Texas FSBO's and Disclosures
John Smith is on track. if some body covering up stuffs.
The last report may have info on an area.
I see that a lot.

Ron

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Old 08-06-2008, 08:20 AM
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Scott Patterson Scott Patterson is offline
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Re: Texas FSBO's and Disclosures
I kind of like knowing the history of the house I'm inspecting. I can guarantee you that if I see a receipt from "ABC Heating and Cooling" sitting on the owners desk or counter that I will discreetly take a look at it.

I'm at that home to gain as much information as I can in a fairly short period of time, so I will take all the help I can get. As for old in$pection reports, I have looked at them before and on a couple of occasions have gained some information that has helped me in the inspection.

As for FSBO's, I love them. Yes, they do tend to take a little more work on my part, but I don't mind. I have never had a seller not show up to let me in a home!

Most of the states that have disclosure laws only come into play when an agent is involved, or that is they way it is in the states that I have worked in. The vast majority of the real estate laws only govern the agents that work under them
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Old 08-06-2008, 09:15 AM
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John McKenna John McKenna is offline
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Re: Texas FSBO's and Disclosures
In some cases people disclose just enough to ease the fear of prosecution. For example, if they disclose that there has been a previous plumbing leak, sometimes this is the tip of the ice burg that really points to interior flooding in the house. Every little bit of information helps.
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Old 08-06-2008, 11:53 AM
Ted Menelly Ted Menelly is online now
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Re: Texas FSBO's and Disclosures
My thing with disclosures is this. If I am going to look at every disclosure or previous inspection from another inspector then all my inspections would become re inspections.

I am not at my inspections to do re inspections. I am there to tell my clients of the conditions of the home at the time of the inspection. I am not there to applaud or denounce anyone elses work or guess if they did a proper job or just covered something up.

If there are no apparent signs of leaks at the time of the inspection. I am not going to tell my client that I "think" someone covered something up or give them the impression that I "think" they did a good job behind this here wall. Or for that matter I "think" they did a good job on those piers. Or I "think" they did not do a good job on those piers.

Doing re inspects are iffy enough. Why would I (or anyone) want every job to be a re inspection?????????????

I here all the time that "the home was just inspected a month ago" or "they just had some work done on the home". My response to that is, "and????" What I find at the time of the inspection is what goes into the report.

If they just had the roof done I am not inspecting anyones work. I am going to inspect it just like I do any other inspection. If I find something, it goes in the report. If I don't I am not going to write anything in the report.

I understand that the roof was just replaced. This roofer did a fabulous job. I would recommend him to everyone. Or, this roofer is not someone I would recommend. He did a horrible job. He may have just been nominated for the best roofer of the year with good reports from the last thousand jobs. One of his workers smashed his thumb and kept working on this job which affected his performance on this job. Who knows.

No, I would tell them of my findings and what in fact (if anything) the concerns are with that roof.

Man, I just have to much time on my hands with these reschedules this week.

Ring phone ring.
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Old 08-06-2008, 02:45 PM
Ron Bibler Ron Bibler is offline
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Re: Texas FSBO's and Disclosures
Your only as good as your last inspection.

Best

Ron
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Old 08-07-2008, 06:23 PM
Eric Shuman Eric Shuman is offline
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Re: Texas FSBO's and Disclosures
I don't request the disclosure, inspection reports, etc. If they are lying about at the property I sometimes take a look at them - and sometimes I don't. I certainly do not think looking at a glimpse of the house's history is a bad idea for the reasons Scott, Ron and Jon mentioned above.

Sometimes these documents are actually quite humorous, especially the inspection reports done "last month" that have 5 items total listed as in need of repair when I spotted 20 items before I made it a quarter way around the house.

Or then there's the "engineer's report" stating that the foundation is fine but there's no PE stamp or other credentials on the report other than a letterhead. Hmm.

That being said, I don't care what I see (or don't see) in a disclosure, etc. These reports never influence my thouroughness or inspection technique. It is information provided by the seller, and I don't rely on any information provided by the seller (other than "Yes the dog bites!"). IMO, looking at a previous inspection report doesn't mean that I will be doing a re-inspection, it just means that I looked at the previous inspection report.
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Old 08-07-2008, 06:35 PM
Ted Menelly Ted Menelly is online now
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Re: Texas FSBO's and Disclosures
Quote:
Originally Posted by Ron Bibler View Post
Your only as good as your last inspection.

Best

Ron

You are only as good as your next inspection. Look forward. Think positive.
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Old 08-08-2008, 05:48 AM
imported_John Smith imported_John Smith is offline
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Re: Texas FSBO's and Disclosures
Sure its directed at the client, but as an inspector, I want to know as much as possible about the property prior to inspecting it. If an addition or major remodeling was performed, it would be nice to know what year it was done, or if it was done by licensed individuals.


From the official TREC report REI 7A-0
It is recommended that you obtain as much history as is available concerning this property. This historical information may include copies of any seller's disclosures, previous inspection or engineering reports, reports performed for or by relocation companies, municipal inspection departments, lenders, insurers, and appraisers. You should attempt to determine whether repairs, renovation, remodeling, additions or other such activities have taken place at this property.
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Old 08-08-2008, 08:08 AM
Ted Menelly Ted Menelly is online now
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Re: Texas FSBO's and Disclosures
Quote:
Originally Posted by imported_John Smith View Post
Sure its directed at the client, but as an inspector, I want to know as much as possible about the property prior to inspecting it. If an addition or major remodeling was performed, it would be nice to know what year it was done, or if it was done by licensed individuals.


From the official TREC report REI 7A-0
It is recommended that you obtain as much history as is available concerning this property. This historical information may include copies of any seller's disclosures, previous inspection or engineering reports, reports performed for or by relocation companies, municipal inspection departments, lenders, insurers, and appraisers. You should attempt to determine whether repairs, renovation, remodeling, additions or other such activities have taken place at this property.

"It is recommended that *you* obtain" is directed, directly at the client that they should dig up the past history for there sake. It is telling them that you are not responsible for it, they are.

I always ask if they have specific concerns with the property. Of course I address those specific concerns. How do I address their concerns? By noting to them the conditions of the property at the time of the inspection.

All of this is up to the individual inspector.

All of this is of course is just my opinion with the exception that the contract of the first page of the report is directing responsibility to the client.

Oh my, another day off!!!!!!!!!!!!!!

Oh yeah. It is not up to you to determine whether an individual was licensed or not that did the work or for that matter, a permit to do the work. Both of those are way beyond your scope as a home inspector (unless you want to get knee deep into it).

Do you call and check to see if a permit was pulled ??????? or for that matter check on all trades involved in repairs to find out if they are a licensed tradesman?????

If you are then you are not a home inspector but possibly a consultant.

In case you do not see what I am getting at. If you check into part of the past you better do a damn thorough job and be complete. Once something is found of the past and it turns out a permit was not pulled or someone was not licensed or you are announcing that the repairs were done with outstanding professionalism, you are setting yourself apart from being a home inspector and also setting yourself up for a fall.

There are standard limits for a reason. To go by the standards is one thing. To far exceed limits of standards in one area and not the other is also setting you up for a fall. SOP's are not just there to define the minimums. They are also there to protect you.
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Last edited by Ted Menelly : 08-08-2008 at 08:40 AM.
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Old 08-12-2008, 09:50 AM
john bell john bell is offline
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Re: Texas FSBO's and Disclosures
I also have been getting lots more FSBO inpsections. My opinion is that ususally they don't know very much about any part of the transaction. Lots of them do not even have a sales contract, much less a disclosure statement. I have even had to give directons to the title company. My main feeling is that I require my money up front. I also halfway expect a cancellation call the morning of the inspection. Squirrley happenings are more the norm than not. I know most of you guys don't like real estate brokers much, but I am one along with being an inspector. I was one of those guys that was born in the real estate and building business. I have inspected for 20 years. My brokers license is 32 years old. I try to keep my professional mouth shut, do a good inspection and get the heck outa' there. My meaning is that I don't want to have to hold anybodys hand and guide them through a real estate transaction and not get paid for it. P.S. I have not practiced real estate in many years, I just have the ticket. I am very careful about conflict of intrest an, so far, so good.
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Old 08-12-2008, 03:42 PM
Jim Luttrall Jim Luttrall is offline
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Re: Texas FSBO's and Disclosures
Hey John, long time no see!
Good to see you posting here.
Jim Luttrall
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Old 08-12-2008, 04:08 PM
john bell john bell is offline
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Re: Texas FSBO's and Disclosures
Hey Big Jim, I've been looking over you guys shoulders for quite a while, I kinda think I should keep my mouth shut, lest I show my ignorence. I have been getting an inordinate number of FSBO's though in this wierd market, so I thought I would post. Hope biz is good for you! john bell
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Old 08-12-2008, 11:44 PM