Realtor Pres

Ful lCirc leHom eInsp ect io ns

HOME INSPECTIONSHOME INSPECTIONSWhat really matters ?What really matters ?A presentation for real estate professionals

Brought to you by

The Inter-National Association ofCertified Home Inspectors

Full Circle Home Inspections

www.NACHI.org

America’s Elite Home Inspection Organization


Contents of presentationContents of presentation�� The role of your home inspector.The role of your home inspector.

�� How we can assist you.How we can assist you.

�� Types of inspections.Types of inspections.

�� Our standards of practice.Our standards of practice.

�� What are we looking at ? What are we looking at ?

�� What are our limitations ?What are our limitations ?

�� Our code of ethics.Our code of ethics.

�� What do we often find ?What do we often find ?

�� What really matters to your clients ?What really matters to your clients ?

�� All about NACHI.All about NACHI.

�� All about your NACHI inspector.All about your NACHI inspector.

�� For further informationFor further information


The role of your Home InspectorThe role of your Home Inspector

�� To provide an unbiased, written report To provide an unbiased, written report

based on the condition of the home.based on the condition of the home.

�� To report the condition of the homes To report the condition of the homes

structure, roof and major systems.structure, roof and major systems.

�� To advise the client as to areas that To advise the client as to areas that

are, unsafe, require immediate repairs are, unsafe, require immediate repairs

or maintenance and sensible safety or maintenance and sensible safety

related updates.related updates.

�� To help you help the client to make To help you help the client to make

informed decisions about the homeinformed decisions about the home


Different Levels of DefectsDifferent Levels of Defects

�� Watch List: An item that is not Watch List: An item that is not

currently a problem, but has a currently a problem, but has a

high likelihood of failing in the near high likelihood of failing in the near

future.future.

�� Examples:Examples:

––Older RoofOlder Roof

––Older Water Heater or FurnaceOlder Water Heater or Furnace

–– Recommendations for regular Recommendations for regular

maintenance like window caulkingmaintenance like window caulking



�� Repair and/or Replace: An item Repair and/or Replace: An item

that is defective and should be that is defective and should be

repaired in order to guard against repaired in order to guard against

more damage.more damage.

�� Examples:Examples:

–– Roof FlashingRoof Flashing

–– Leaky PipesLeaky Pipes

––Damaged Electrical OutletsDamaged Electrical Outlets



�� Significantly Deficient: Defined in Significantly Deficient: Defined in

State Law as State Law as ““Any system of Any system of

component that is unsafe of not component that is unsafe of not

functioningfunctioning””..

�� ““Not FunctioningNot Functioning”” is easy. It does is easy. It does

not work, i.e., the furnace does not not work, i.e., the furnace does not

work.work.

�� Unsafe is defined against current Unsafe is defined against current

National Standards, not local codes.National Standards, not local codes.



�� Unsafe: Defined in State Law as Unsafe: Defined in State Law as

““A condition in a system or component A condition in a system or component

that is a significant risk of personal that is a significant risk of personal

injury or property damage during injury or property damage during

normal, daynormal, day--toto--day use. The risk may day use. The risk may

be due to damage, deterioration, be due to damage, deterioration,

improper installation or a improper installation or a change in change in

accepted residential construction accepted residential construction

standards. standards.


Different Levels of DefectsDifferent Levels of Defects�� Being in accord with local building Being in accord with local building codes is not the same as being safe.codes is not the same as being safe.

�� Codes are a Codes are a minimumminimum standard of standard of required work.required work.

�� Codes vary from town to town. Codes vary from town to town. National standards do not.National standards do not.

�� A house can be perfectly compliant with A house can be perfectly compliant with code, but be perfectly unsafe.code, but be perfectly unsafe.

�� Inspectors are required, by law, to call Inspectors are required, by law, to call out all out all ““Significantly DeficientSignificantly Deficient”” items.items.


What can we do What can we do for you ?you ?�� We promise to act professionally towards We promise to act professionally towards you and the client at all times.you and the client at all times.

�� We undertake to deliver a comprehensive We undertake to deliver a comprehensive and unbiased report to your client in a and unbiased report to your client in a timely manner.timely manner.

�� We are happy to discuss the findings of our We are happy to discuss the findings of our report with you at your clients request.report with you at your clients request.

�� We guarantee to perform the inspection We guarantee to perform the inspection exceeding with industry standards and in exceeding with industry standards and in full compliance with any state requirements.full compliance with any state requirements.

Professional Service + An Informed Buyer

= A quick closing


Types of inspectionsof inspectionsPre-listing inspections:

Give the seller the opportunity to correct defects prior to listing,

provide a more accurate disclosure, take nasty surprises out of the

equation and speed up the closing.

Buyers inspections:

Give the potential purchaser and their Realtor the tools needed to make an informed decision about the condition of the home and

reduce liabilities for all involved.


Types of inspectionsof inspectionsNew Construction Inspection:

Even new houses have problems. With the new paradigm of tear-

down builders and large developments, inspection of new

construction is crucial.

Phased Construction Inspection:

Building your own custom home? Why not have an expert on your side? A home inspector can be your eyes and ears on-site.


Types of inspectionsof inspectionsRemodeling Consultation:

Home inspectors are experts on all the newest techniques and

materials. If you are planning a remodel, why not have an inspector

help you decide the most cost effective way to do it?

Renter’s Security Deposit Inspection:

Have a certified home inspector document the condition of your rental property before you rent it. Avoid the hassle of security deposit

disputes with renters.


Our Standards of PracticeOur Standards of Practice

�� We are required to meet standards of We are required to meet standards of

practice as laid out by our trade practice as laid out by our trade

organization or state licensure.organization or state licensure.

�� We report on the materials and methods We report on the materials and methods

used in the construction of dwellings and used in the construction of dwellings and

their systems and report on their overall their systems and report on their overall

condition based on a visual and noncondition based on a visual and non--

invasive inspection.invasive inspection.

�� For more details about our minimum For more details about our minimum

standards of practice, please visit:standards of practice, please visit:

http://www.nachi.org/sop.htm


What are we looking at ?

� Roof system & coverings.

� Exterior & lot.

� Basement, Foundation, Crawlspace & Structure.

� Heating systems.

� Cooling systems..

� Plumbing fittings & fixtures.

� Electrical supply & distribution.

� Fireplace & chimney.

� Attic & Insulation.

� Doors, Windows & & Interior.Interior.

The report will contain comments on the condition of the following systems

For more information on the above please visit: http://www.nachi.org/sop.htm


What are our limitations ?�� A home inspection is A home inspection is NOTNOT a warranty and a warranty and implies no guarantee of the future condition implies no guarantee of the future condition of the home or its systems.of the home or its systems.

�� The inspector can only report on systems The inspector can only report on systems that they can see based on reasonable that they can see based on reasonable access.access.

�� The report should only be considered The report should only be considered ““a a snapshot in timesnapshot in time”” and can only represent and can only represent conditions viewed on the day and time of conditions viewed on the day and time of the inspection.the inspection.

�� An inspection is not technically exhaustive.An inspection is not technically exhaustive.

�� When necessary the inspector will defer to When necessary the inspector will defer to a specialist contractor or other professional a specialist contractor or other professional for further evaluation.for further evaluation.


What do we often find ?What do we often find ?

Obviously a little Obviously a little

extreme, but the extreme, but the

home inspector will home inspector will

frequently find frequently find

unknown problems unknown problems

with the roof and with the roof and

roof coverings.roof coverings.

But weedwacking But weedwacking

the roof ?the roof ?

Another common Another common

electrical problem electrical problem

with an ungrounded with an ungrounded

outlet having been outlet having been

placed inside the placed inside the

shower area.shower area.

SHOCKING !!SHOCKING !!

Perhaps the most Perhaps the most

commonly reported commonly reported

problem is with problem is with

unsafe wiring issues, unsafe wiring issues,

in this case the in this case the

exposed live wires exposed live wires

could easily could easily

electrocute the electrocute the

occupants,occupants,

All pictures courtesy of various NACHI members copyright NACHI 2000-2004


What do we often find ?What do we often find ?

Would most people Would most people

realize that this realize that this

water heater is in a water heater is in a

dangerous dangerous

condition, and as condition, and as

well as the fire issue well as the fire issue

is not venting is not venting

properly and could properly and could

kill the occupants.kill the occupants.

Inspectors will often Inspectors will often

see materials that see materials that

have been known to have been known to

present problems, in present problems, in

this case a type of this case a type of

siding that was siding that was

subject to a class subject to a class

action suit.action suit.

Unfortunately not all Unfortunately not all

chimney problems chimney problems

are this easy to are this easy to

spot. The home spot. The home

inspector is trained inspector is trained

to recognize visual to recognize visual

deficiencies in many deficiencies in many

different systems.different systems.

All pictures courtesy of various NACHI members copyright NACHI 2000-2004


What really matters to your What really matters to your

clients ?clients ?�� We provide an easy to understand inspection We provide an easy to understand inspection report, complete with color photos and diagrams, report, complete with color photos and diagrams, pointing out to the potential buyer the overall pointing out to the potential buyer the overall condition of the home and the areas that may need condition of the home and the areas that may need repair or maintenance.repair or maintenance.

�� We will educate the buyer, by giving them an We will educate the buyer, by giving them an impartial evaluation of the visible structure and impartial evaluation of the visible structure and systems.systems.

�� We are not concerned with the cosmetic condition We are not concerned with the cosmetic condition of the home unless that is indicative of deeper lying of the home unless that is indicative of deeper lying problemsproblems

�� We are not here to We are not here to ““kill the dealkill the deal”” but we have all but we have all inspected a few homes that have committed suicide inspected a few homes that have committed suicide in front of us !!in front of us !!


What really matters ?The following article was written by NACHI Founder Nick Gromicko to help educate consumers about the home

inspection process.

Buying a home? The process can be stressful. A home inspection is supposed to give you peace of mind, but often has the opposite effect.

You will be asked to absorb a lot of information in a short time. This often includes a written report, checklist, photographs, environmental reports, and what the inspector himself says during the inspection. All this combined with the seller's disclosure and what you notice yourself makes the experience even more overwhelming.

What should you do? Relax. Most of your inspection will be maintenance recommendations, life expectancies and minor imperfections. These are nice to know about. However, the issuesthat really matter will fall into four categories:


1. Major defects. An example of this would be a structural failure.

2. Things that lead to major defects. A small roof-flashing leak, for example.

3. Things that may hinder your ability to finance, legally occupy, or insure the home.

4. Safety hazards, such as an exposed, live buss bar at the electric panel.

Anything in these categories should be addressed. Often a serious problem can be corrected inexpensively to protect both life and property (especially in categories 2 and 4). Most sellers are honest and are often surprised to learn of defects uncoveredduring an inspection. Realize that sellers are under no obligation to repair everything mentioned in the report. No home is perfect. Keep things in perspective. Don't kill your deal over things that don't matter. It is inappropriate to demand that a seller address deferred maintenance, conditions already listed on the seller's disclosure, or nit-picky items.


Our code of ethics (abridged)

�� The Inspector shall be fair, honest, impartial, The Inspector shall be fair, honest, impartial, and act in good faith in dealing with the public.and act in good faith in dealing with the public.

�� The Inspector will have no undisclosed conflict The Inspector will have no undisclosed conflict of interest with the client, nor will the Inspector of interest with the client, nor will the Inspector accept or offer any undisclosed commissions, accept or offer any undisclosed commissions, rebates, profits, or other benefitrebates, profits, or other benefit

�� The inspector shall not perform or offer to The inspector shall not perform or offer to perform, for an additional fee, any repairs or perform, for an additional fee, any repairs or associated services to structure on which the associated services to structure on which the inspector or inspector's company has prepared inspector or inspector's company has prepared a home inspection report, for a period of 12 a home inspection report, for a period of 12 monthsmonths

�� For more details about your inspectors ethical For more details about your inspectors ethical obligations please visit: obligations please visit: www.nachi.org/code_of_ethics.htmwww.nachi.org/code_of_ethics.htm


All about All about INACHIINACHIThe The InterInter--NationalNational

Association ofAssociation of

Certified Home InspectorsCertified Home Inspectors

�� Home of Americas elite home Home of Americas elite home inspectors.inspectors.

�� Over 10,000 Certified Home Over 10,000 Certified Home Inspectors across the US and Canada.Inspectors across the US and Canada.

�� Our members meet the highest Our members meet the highest standards of practice, ethics and standards of practice, ethics and

continuing education.continuing education.

�� The best inspectors can be found at The best inspectors can be found at www.findaninspector.us

For more information on NACHI go to www.nachi.org

Realtor Pres

Real Estate