Home Inspections Gain Favor of Prudent Buyers
Renee and Angelo Daddario were so eager to buy their first home that when they saw the ocean-view house in San Pedro, they bought it without a second thought--or a second look.
The $330,000 Tudor-style house on 27th Street seemed just right to the Daddarios, who had saved $70,000 for the down payment.
But shortly after they moved in, the roof started leaking so badly that the Daddarios had to replace not only the roof but much of the drywall in the room below the leak.
“When we replaced the roof at a cost of $2,000, we were told that the flat portion of the roof was substandard, basically roofing paper over cold tar,” Renee Daddario said.
At that point, the Daddarios did something that more and more Californians are doing these days when they buy a house--they had it checked out by a home inspector. The two- to three-hour examination typically costs between $200 and $400 and includes a detailed, written report.
“That’s when we learned that the house had been remodeled improperly, with inadequate framing, electrical work, roofing and heating,” she said of the inspection by Bill Ross of Goldenwest Home Inspectors Inc., Huntington Beach.
“The (inspection) report cost only $200, and was so comprehensive the electrical contractor and the general contractor used it as a guideline to bring the house up to code, a job that cost about $13,000.”
Five years ago, home inspection--a visual examination of the systems that make up a house, from the foundation to the roof--was such a minor part of California real estate transactions that many telephone directories didn’t have a classification for inspectors.
Today, however, as a result of consumer protection measures, a significant and growing percentage of existing houses--and even some new homes--are inspected at the time of sale.
Of the 385,000 existing homes sold in California in 1983, only about 8,000 were inspected, according to Skip Daum, executive director of the California Real Estate Inspection Assn. (CREIA). Last year, at least 165,000 of the more than 550,000 existing houses sold in California were inspected, he said.
In December, 1986, CREIA had 70 members; last year, its membership numbered about 300, or about 25% of the 1,200 home inspectors active in California, according to CREIA President Kevin O’Malley.
Nationally, the Washington, D.C.-based American Society of Home Inspectors (ASHI) had about 900 members and candidates two years ago. The number increased by more than 50% to more than 1,400 at the end of 1988.
O’Malley, president of Network Home Inspections in the north San Diego County community of Vista, attributes the rapid increase in the number of inspections and inspectors to the real estate disclosure law that took effect Jan. 1, 1987.
Moe Jones, with the Burbank Board of Realtors, said the law prompted many brokers who were indifferent--or even hostile--to home inspections to commission checkups to protect the seller from lawsuits alleging that major defects had been hidden.
He added that agents representing the buyer commission inspections to protect the buyer from defects that aren’t obvious.
“Since the disclosure law went into effect, every (real estate) agent is far more aware of his or her responsibility . . . to determine the condition of the house,” Jones said. “From what we’ve seen, this has resulted in far more home inspections.”
About 80% of home inspections are ordered by brokers, with the buyer paying for the report. Most of the rest are commissioned directly by the buyer, according to Fred J. Lucas, director of business development at AmeriSpec of Orange, a home-inspection franchiser.
Among home inspectors, the most common background is construction, said AmeriSpec’s Thomas Carroll. About 75% of the inspectors are contractors or have worked in construction fields. Others come from engineering, architecture and municipal building inspection.
Home inspectors are not licensed in California, but both ASHI and CREIA require a potential member to perform a number of inspections--with the exact number determined by the candidate’s prior education and experience--before being admitted to membership.
Home inspections were widely used in the East before Californians learned about them, and it used to be a rule of thumb that only older houses needed to be inspected, said ASHI spokesman John J. Heyn.
“Houses on the East Coast are often older . . . and usually have basements, with all their moisture problems,” he said. “The weather is also more severe, making it important for buyers to determine the condition of the roof and the heating system.”
It’s probably a good idea to inspect any house, regardless of age or price, said Les DiFrancesca of Specific Property Inspection, Los Angeles. A contractor who has been inspecting homes since 1985, DiFrancesca estimates that new homes account for only 2% of his work.
“(But) just because a house is new and expensive doesn’t mean that everything is correctly done,” he said.
He cites the case of Larry Siegel, who began looking for a new house in Bell Canyon, an upscale community west of the San Fernando Valley, in Ventura County.
“We found a house on Bell Canyon Road that looked really great from the outside,” Siegel said. “My wife liked the floor plan, the way everything flowed, but frankly I wasn’t as impressed with some of the details that I saw.”
The house was nearly completed, but Siegel found that the oven was missing, the carpet installation was inadequate, there were sharp corners on the shower door and several lighting fixtures and the garage door opener were missing.
“We were assured that everything would be completed, and we made an offer for a price in excess of $500,000, contingent on the house passing an independent inspection,” Siegel said.
He obtained DiFrancesca’s name, along with two others from a real estate broker, and--after checking the qualifications of all three--hired him.
DiFrancesca inspected the house and found that shear walls--plywood panels attached to the wood frame to provide stability, especially during an earthquake or high winds--were missing. They were clearly marked on the blueprints, he said. Also, the central air conditioner was wired improperly.
Decided Not to Buy
The Siegels decided not to buy the house and got their $15,000 deposit back. Siegel estimates that it would have cost $100,000 to bring the house up to code.
“Having a good home inspector is the only assurance I had of getting quality construction,” Siegel said.
DiFrancesca suggests inspecting a new house after it has been substantially completed, when the certificate of occupancy has been obtained. “Make passing a home inspection a clause in your offer,” he said. “If the builder is honest, he can’t object to that.”
Whether the house is new or existing, it’s important to make certain the inspector examines it thoroughly, from the crawl space of a raised foundation house to the chimney cap. Many inspectors will permit, or even encourage, a client to come along on the inspection.
After noting the condition of the landscaping, the sidewalks and driveways, and the general condition of the house, the inspector examines the foundation for cracks or signs of subsidence. If there is a raised foundation, he crawls under the house to examine visible pipes, foundation piers and footings, and other components visible only from beneath the house.
DiFrancesca said he always checks the electrical panel for proper fuses or circuit breakers, as well as noting the capacity of the electrical system. There should be special 220 volt circuits for central air conditioners and electric ranges, he said.
A common--and potentially dangerous--error is to wire these appliances directly to the main electrical wires, with no circuit breakers.
Attic Ventilation
In both new and existing homes, it’s important to make sure that the house has proper attic ventilation. It’s possible to make a house too tight, according to Stan R. Luhr of Pacific Property Consultants, El Cajon.
When he is in the attic, Luhr checks for water stains on the roof sheathing, the adequacy of roof rafters and the condition of vent stacks. Sometimes plumbing vent stacks terminate in the attic, rather than going up through the roof as required.
Using a ladder, an inspector takes a close look at the roof, noting missing shingles or tiles and the general condition of the roof and the flashing at roof joints, valleys and vent pipes. He examines the gutters for debris and leaks, as well as loose fastening brackets.
In the garage, the inspector looks for water stains on the roof sheathing, a sign of a leaky roof. He or she--there is one woman member of CREIA, Lois Ezzie of Certified Home Inspections, Los Gatos, as well as several women candidate members--checks the garage door, the springs and the automatic opener, if any.
The inspector examines the water heater to make sure it has steel strapping to keep it in place during an earthquake. If the age of the water heater can be determined, the inspector notes this.
According to ASHI’s Heyn, home inspectors check the water pressure of the house at the main shut-off valve. The inspector also checks water pressure inside the house by turning on all the faucets. Low water pressure can be a sign of problems with galvanized pipes, commonly used on older houses.
Electrical outlets are checked for grounding and to see if they’re functioning. The inspector also notes whether there are enough outlets in each room. If there is evidence of non-code electrical work, such as extension cords used for permanent wiring, the inspector notes this on his report.
Brenda Leisey, a real estate saleswoman with Karlsbad Realty, Carlsbad, recommends home inspections for any house over 8 years old or any one that has had deferred maintenance.
She said that reports from Luhr’s firm have uncovered a great deal of deferred maintenance items. “When I represent a buyer, I seek a very thorough inspection, with lots of detail,” Leisey said. “In one case, Stan Luhr found $1,500 worth of repairs in a 17-year-old house. That’s not a lot, but it helps a buyer to negotiate better when he or she knows everything about a house.”
Sometimes, a home inspection can uncover a life-threatening situation. This was the case with an inspection ordered by Karen Lynch, a real estate saleswoman with Coldwell Banker in Newport Beach, for a house she was planning to buy.
An inspection by Bill Parker, who works for several Orange County AmeriSpec franchises, showed that the house in a gated area of Newport Beach was in beautiful condition--except for a uneven, dancing flame in the gas furnace. In his inspection report, Parker recommended that Lynch have the gas company inspect the furnace. The dancing flames were caused by a cracked heat exchanger, which could allow deadly carbon monoxide to enter the house.
“The cost of replacing the furnace was only about $1,500, paid by the seller, but the knowledge that an inspection uncovered a potentially dangerous problem is priceless,” Lynch said.
Renee and Angelo Daddario are living with relatives, getting ready to buy a house in Huntington Beach. They sold the San Pedro house earlier this spring and are suing the previous owners and the brokerage firm that represented the previous owners.
Renee Daddario said she learned a great deal about buying a house from the San Pedro experience--especially the need for a home inspection on any transaction, regardless of what the broker or the owner discloses about the condition of the house.
“It’s OK to fall in love with a house--after you’ve had it inspected. Just don’t let your emotions about how charming the house is take over.”
HOME INSPECTION RESOURCES
* American Society of Home Inspectors, 3299 K St. N.W., Washington, D.C. 20007, (202) 842-3096.
* California Real Estate Inspection Assn., 1100 N St., Suite 5D, Sacramento, Calif. 95814, (916) 443-1422.
* “The Complete Book of Home Inspection” by Norman Becker (McGraw-Hill Paperbacks, 1980, $8.95). Still in print after nearly a decade, this illustrated book includes detailed information--in lay language--about all the systems of a house. It will help you interpret the report you receive from a professional home inspector. Becker is a registered professional engineer, a home inspector and one of the founders of ASHI. There is a glossary and a four-page inspection work sheet.
