The quality of the Home Inspection will influence the probability of a sale, so it is critical to select a Home Inspector that is neither a Deal Maker nor a Deal Breaker.

WRITTEN BY OSCAR LIBED OF INSPECT HAWAII

What is a Deal Maker?

The Deal Maker will minimize the defects of the property which will influence the Buyer to proceed with the purchase of the property.

Why would a Home Inspector play this role?

The Home Inspector relies on the Realtor for business referrals, so the incentive is to not displease the Realtor and jeopardize the sale for the Realtor. The Realtor is happy that this contingency for the sale will be removed so that the sales process can move forward toward a closing date. Unfortunately, the Buyer does not benefit from this scenario as defects that were described by the Home Inspector as “minor” may, in fact, be discovered later by the Buyer as very “major”, and the Buyer will be stuck with the high repair costs. Once escrow is closed, it is exceedingly difficult to seek a remedy.

This is a major compelling factor that led to the regulation of Home Inspectors in 36 States. Click on this link for my last article, “Are Home Inspectors Regulated (Licensed) in Hawaii”?

Here is a graph to help illustrate this scenario:

What is a Deal Breaker?

The Deal Breaker will exaggerate the defects of the property which will influence the Buyer to NOT proceed with the purchase of the property. It is the opposite extreme of the Deal Maker.

Why would a Home Inspector play this role?

The Home Inspector’s personality and demeanor are the reason for this scenario. The interpersonal communication of the defects of a house to a Buyer can be a distraction from the actual defect. The purchase of the house can be an emotional decision and the presentation of the defects can lead to an impression that “The sky is falling”. This can be very discouraging to a Buyer that has “fallen in love” with the perfect house. In short, the Home Inspector is “scaring the Buyer” from purchasing the property.

Here is a quote that summarizes this scenario:

What is a Good Home Inspector?

Avoid the Deal Maker. Avoid the Deal Breaker.

The Good Home Inspector provides an Impartial Opinion based on Industry Standards and communicated objectively.

Simply put, “Inspectors shall be objective in their reporting and not knowingly understate or overstate the significance of reported conditions (ASHI Code of Ethics).

For any questions on this topic, please call Oscar Libed of Inspect Hawaii at 808-728-5707 or send an email to oscar@inspecthawaii.com

www.inspecthawaii.com

For many people, buying a home arguably represents the single largest purchase they will make in their lives, and contracting the services of a qualified home inspector may be a first line of defense.

WRITTEN BY OSCAR LIBED OF INSPECT HAWAII

What is Certification vs. Licensing?

A Certification verifies that a professional has met a certain set of criteria for a skill or job as measured by a third-party assessment, usually a non-government body like a Trade Association. For Home Inspectors, there are 2 national trade associations offering Certifications:  ASHI (American Society of Home Inspectors) and NACHI (National Association of Certified Home Inspectors).  They provide Standards of Practice for conducting Home Inspections and a Code of Ethics.

A License is a verification by a government agency that a professional can perform a particular occupation in a particular location, such as a certain State.

Why worry?

Excerpts from the Hawaii State Auditor’s Report No. 19-09 dated March 2019:

“Although certification programs are offered to home inspectors in Hawai‘i through the three organizations, we found indications that there are an undetermined number of non-certified individuals who are conducting home inspections in the State.”

Which states do not require a home inspection license to perform home inspections?

14 states do not require a license to perform home inspections.

They are California, Colorado, Georgia, Hawaii, Idaho, Iowa, Kansas, Maine, Michigan, Minnesota, Missouri, Nebraska, Utah, and Wyoming.

Conclusion of State Auditor on the Regulation of Home Inspectors:

For many people, buying a home arguably represents the single largest purchase they will make in their lives and contracting the services of a qualified home inspector may be a first line of defense. State law currently requires sellers to provide prospective buyers a disclosure statement of any defects about which the homeowner is aware that may affect the value of a residential property. A home inspection may supplement the seller’s disclosure statement by identifying other potential issues about which the homeowner is not aware.

Based on the limited scope of work that home inspectors perform, coupled with an absence of reported complaints against home inspectors or home inspection businesses that might indicate the profession presents a risk to home buyers’ health, safety, and welfare, we are unable to conclude that regulation of home inspectors is “reasonably necessary to protect the health, safety, or welfare of consumers,” nor can we conclude that the health, safety, or welfare of consumers may be “jeopardized” by the nature of home inspection services.

Based on our assessment, we find there is insufficient evidence to meet the criteria under Section 26H-2, HRS, to require the regulation of home inspectors to protect the health, safety, or welfare of consumers.

For any questions on this topic, please call Oscar Libed of Inspect Hawaii at 808-728-5707 or send an email to oscar@inspecthawaii.com

www.inspecthawaii.com