Thread: How Many Buyers Get Home Inspections?

The last "official" figure I can find in an ASHI/NAR poll take in 2001 which reveals that 77% of home buyers use an inspector. Does anyone have a more recent figure?

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Aaron,

Here lately, I think most of the buyers are relying on the prior HI reports the sellers had done when they bought the home.

All to save a buck.

rick

I have heard the mid 80s but that is not really any hard and fast quote. This is just what I have heard.

I don't put much salt on that old ASHI/NAR figure. If I recall it was done via a survey of NAR members and had little to do with ASHI.

Based on what I have seen I would estimate that around 50% if not less of the home buyers were getting inspections on homes over the past few years. I think that number might even be lower now. I know that in the greater Nashville market we had 2350 home sold in the month of February. We have right at 40 home inspectors in this market area now, compared to 87 just six months ago. Believe me that the inspectors that are still in business are not doing the number of inspections that would indicate that 50% of the buyers are having inspections.

I think that NAR and ASHI as well as other organizations are pumping the number up just to make it sound good.

It is all relative to your specific market. I'm sure some markets have higher levels and some have lower levels.

I will say that most of the Realtors in the Dallas metroplex push or encourage buyers to have home inspections. If the buyers choose not to have an inspection, they have to sign off on a form stating they chose not to do an home inspection after being advised by the realtor to have an inspection.

New home construction buyers are the ones that probably choose not to have an inspection more than others. Brand new home, so what could be the problem with it?

rick

I would have to agree with Scott, at least for my area also. I know that at least a few of the main inspectors in my area have gone out of business and one that completed alot of inspections within the last couple of weeks and inspections have remained down. I have also spoke to many of the RE agent in my area and many are saying the same thing. Alot of buyers are holding on to their money with the economy and opting not to have an inspection, even when the RE agent is recommending an inspection. However, with that being said this is the busiest week I have had since last spring !

Originally Posted by Rick Hurst

I will say that most of the Realtors in the Dallas metroplex push or encourage buyers to have home inspections. If the buyers choose not to have an inspection, they have to sign off on a form stating they chose not to do an home inspection after being advised by the realtor to have an inspection.

New home construction buyers are the ones that probably choose not to have an inspection more than others. Brand new home, so what could be the problem with it?

rick

Ditto on all that Rick.

I get the same thing from many realtors about both situations on new and existing homes. Most realtors (if a realtor is involved) don't push the new build inspections. As you say "it's a brand new home, what could possibly be wrong"

I think the amount of foreclosures are contributing to less inspections also. One, there are more investors who are picking up these properties and more than likely not getting an inspection and second, because most of these properties are being sold As-Is, clients probably feel that the inspection probably won't tell them anymore than what they can see.

Fortunately, almost every home buyer in Mass. gets a home inspection.

Originally Posted by Ken Bates

Fortunately, almost every home buyer in Mass. gets a home inspection.

Around here (Oregon) it's the same. I've asked many agents and I'd say we're in the 75-80% range.

Also, something that we might not all take into consideration is a house having multiple inspections. Either a listing inspection then a buyer's inspection or a fail-sale and another inspection. It may not account for much but at least its helping fill the space for some of the houses that aren't getting inspections.

Originally Posted by Rick Hurst

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New home construction buyers are the ones that probably choose not to have an inspection more than others. Brand new home, so what could be the problem with it?

rick

Good point about new construction. Most folks would probably decide against a HI on a new home. That probably skews the numbers somewhat. ALthough all new home buyers should be shown some pictures of what some HI's find wrong on brand new homes

Originally Posted by Brian Thomas

Good point about new construction. Most folks would probably decide against a HI on a new home. That probably skews the numbers somewhat. ALthough all new home buyers should be shown some pictures of what some HI's find wrong on brand new homes

This got me thinking so I did a little research.... for 2008 12.25% of my company's inspections were on new construction. It surprised me how high it was. At first I guessed somewhere between 5-10%. We don't do any special advertising or purposely work with agents that deal in new construction so I don't know that it's out of line for the area. Also, we do enough business that I don't think it's just a statistical fluke.

There are a couple reasons why 08 could be higher than other years, I suppose. The builders around here (and everywhere for that matter) were hurting worse than anyone else. Their price cuts were much more drastic and quick than most sellers who refused to get realistic about prices. So, on a % basis, I imagine 08 was a pretty strong year for new houses selling.

I don't know about the rest of you, but 100% of my clients do.

I have buyers that will have my termite report done first. as i caver about 80% of what a HI Will cover. they will see what I come up with and then will move forward with the HI Report if things are not that bad.

Best

Ron

Between 2003 & 2005, during the boom, I had a small drop in sales. I found that a very large sample of buyers were putting escalation clauses of up to $20,000 over the asking price into their proposals and no inspections to secure the winning contract. Now I find that buyers are back to there same old stuff of asking for $10,000 off asking price, 6% closing costs and home inspections. My sales are up from previous years (so far)and I expect to perform over 400 home inspections this year.

When the seller has the power, the HI loses. When the buyer has the power, the HI wins. When the Government has the power, we all lose.

Home Rite Home Inspector, York, Pa - Real Estate Inspection in PA and Maryland

Its really hard to put a figure on that in Ohio . Recently the busines has dropped . after doing some research of the area . most buyers today see the attached By as is and figure they dont need the inspection and alot of agents are really afraid to push or even suggest inspections .

In my area of Oklahoma the percentage of buyers using a certified home inspector is low because the realtors are advising their clients to use their plumber, HVAC and electrical contracting buddies. We have a lot of educating to do.

With the mortgage fiasco going on, the feds (VA, FHA & HUD) will be soon mandate inspections for buyers that want fed backed mortgages. Hoepfully, they'll cull the bumpkins and buddy buddies from the process like they do with appraisers. That should also wipe out the real estate agent's friendly inspector syndrome.

Most lenders are requiring inspections here in Texas.

Originally Posted by Robert Olson

With the mortgage fiasco going on, the feds (VA, FHA & HUD) will be soon mandate inspections for buyers that want fed backed mortgages. Hoepfully, they'll cull the bumpkins and buddy buddies from the process like they do with appraisers. That should also wipe out the real estate agent's friendly inspector syndrome.

Most lenders are requiring inspections here in Texas.

Hi Robert


Obviously a fellow Fort Worth Inspector here. I find the opposite. The only lenders I see requiring Home Inspections (and only on older homes) are the homes that the buyers are getting an FHA loan. Some other lenders are requiring WDIs but not practically any other than homes that are older than a few years for FHA loans and of course all VA loans.

Ted,
I'm consulting on a house right now just outside of FW. The inspection was botched so bad that the owner needs a second inspection just for the record. Here's a sample of what the original inspector missed. Can I give him your name?

Originally Posted by Robert Olson

Ted,
I'm consulting on a house right now just outside of FW. The inspection was botched so bad that the owner needs a second inspection just for the record. Here's a sample of what the original inspector missed. Can I give him your name?

A little info on details would certainly help first. A mess like that would make one think things are getting a little deep.

What kind of consulting do you do? You can send some details in a Private message if you wish.

My buddy's wife is a real estate agent here in Indiana and she is selling the crap out of houses, but they are all bank repos.
I have gotten a few inspections from buyers of these just wanting to know what might be wrong, which is usually alot. I probably hurt my business, but I always tell them up front what "as is" means.

Originally Posted by Ken Bates

Fortunately, almost every home buyer in Mass. gets a home inspection.

People from Mass are just smarter, thats all. Oh wait, I used to live in Mass

Originally Posted by Ted Menelly

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People from Mass are just smarter, thats all. Oh wait, I used to live in Mass

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It's not Too Late.
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