THE BUYER'S GUIDE TO PRE-PURCHASE INSPECTIONS Brought to you as a public service of Status Inspection & Design ® Fredericton's oldest Real Estate Inspection Firm (506)  461-0549             www.status.nb.ca

        A PROFESSIONAL VISUAL EXAMINATION OF A BUILDING'S CONSTRUCTION TO:

THE AVERAGE TIME THAT PURCHASERS LOOK AT A HOUSE BEFORE DECIDING
TO MAKE AN OFFER IS ONLY 17 MINUTES. APART FROM A NEW HOME WARRANTY,
A BUILDER'S GUARANTEE OR A CAREFULLY WORDED OFFER, PURCHASER HAVE MORE
PROTECTION BUYING A TOASTER THAN A HOME OR OTHER BUILDING.
i.e. 'at least the toaster will have a guarantee'

• NO!   BASICALLY, INSPECTIONS PROTECT THE PURCHASER WHILE APPRAISALS PROTECT THE LENDER.
• APPRAISALS (MORTGAGE LENDING) ESTABLISH THE  FAIR MARKET VALUE

OF PROPERTIES.
• PRE-PURCHASE INSPECTIONS ESTABLISH A PROPERTY'S PHYSICAL CONSTRUCTION AND CONDITION.
• APPRAISALS  NORMALLY INVOLVE A 45-60 MINUTE ON-SITE INSPECTION WHILE

PRE-PURCHASE INSPECTIONS RANGE FROM 2 TO 6 1/2 HOURS OR MORE.

YES, REGARDLESS OF AGE,THE FINANCIAL INVESTMENT IN BUYING ANY
HOME IS USUALLY CONSIDERABLE. THERE IS NO GUARANTEE THAT A HOME IS BETTER
BUILT JUST BECAUSE IT'S NEW OR OF RECENT VINTAGE. LIKE  GOOD INSURANCE, INSPECTIONS
GREATLY REDUCE YOUR RISK, FOR A MINIMAL FEE. THE TWO BIG ADVANTAGES OF INSPECTING
A NEW HOME ARE:

1. DEFICIENCIES CAN BE CAUGHT WITHIN THE GUARANTEE PERIOD
2. ITS CONSTRUCTION CAN BE EVALUATED FOR CONFORMANCE TO

NATIONAL AND LOCAL BUILDING CODE STANDARDS

 

VENDOR DISCLOSURE FORM OTHERWISE KNOWN  AS  PROPERTY CONDITION
DISCLOSURE STATEMENT, IS NORMALLY PROVIDED AND SIGNED BY THE VENDOR.
HOWEVER, IT IS THE PURCHASER'S RESPONSIBILITY TO VERIFY ITS ACCURACY. THE
BROKER ASSUMES NO RESPONSIBILITY OR LIABILITY FOR THE ACCURACY OF THE INFORMATION.

UNDER THE WARRANTY "THE BUILDER WILL REPAIR ALL DEFECTS IN
MATERIALS AND WORKMANSHIP DURING THE FIRST YEAR OF OWNERSHIP." *
THE WARRANTY WILL THEN PROVIDE "PROTECTION  AGAINST MAJOR
STRUCTURAL DEFECTS DURING THE FOUR YEARS FOLLOWING, UP TO A
MAXIMUM OF $30,000" *
* Quoted from the Atlantic New Home Warranty Corporation Pamphlet.
   Phone (506) 853-0111

THROUGH THE POWER OF INFORMATION.  ALONG WITH THE POSITIVE ASPECTS,
REPORTS  IDENTIFY ANY MAJOR DEFECTS OR REPAIRS WHICH THE PURCHASER
MAY NOT HAVE BEEN AWARE OF AND MAY WISH TO CONSIDER. THIS ALLOWS THE
PURCHASER TO  BUDGET FOR THE COST OF REPAIRS ANDUPGRADES OR RE-EVALUATE
HIS OR HER OFFER.

SIMPLY MAKE YOUR OFFER CONDITIONAL ON A PRE-PURCHASE INSPECTION BY INCLUDING A
PRE-PURCHASE INSPECTION CLAUSE IN YOUR OFFER (AGREEMENT OF PURCHASE AND SALE).
FOR SCHEDULING FLEXIBILITY, YOU SHOULD ALLOW (5) BANKING DAYS (MINIMUM) AFTER THE
ACCEPTANCE OF THE OFFER , IN WHICH TO HAVE THE INSPECTION DONE, ESPECIALLY IN PEAK
SALES PERIODS.

THE INSPECTOR CO-ORDINATES THE INSPECTION APPOINTMENT THROUGH
YOUR AGENT, ONCE YOU GIVE THE GO AHEAD, AS A GENERAL RULE.

STATUS REPORTS ARE FULLY ILLUSTRATED. OPPOSITE EACH CHECK PAGE THERE'S A PAGE OF
ILLUSTRATIONS SHOWING DETAILS TYPICAL TO THAT SUBJECT.

STATUS REPORTS ARE CONCISE AND USER-FRIENDLY. THEY ARE  NOT 400 PAGE MAINTENANCE
MANUALS NOR PAGES OF 'CHECKED OFF BOXES'WHICH DON'T ELABORATE. COMMENTS ARE
WRITTEN LONGHAND IN LAYMAN'S TERMS AND EACH MAJOR COMPONENT OF THEPROPERTY HAS
ITS OWN CHECKLIST AND CORRESPONDING ILLUSTRATED PAGE.

STATUS REPORTS ARE THOROUGH. WE ARE OFTEN ACCUSED OF BEING TOO THOROUGH. HOWEVER,
WE HAVE FOUND THAT CLOSE SCRUTINY OFTEN REVEALS CONDITIONS OF LARGER CONCERN .
WE DON'T BELIEVE YOU CAN BE TOO THOROUGH.

STATUS REPORTS ARE NOT BASED ON RANDOM SAMPLING WE DON'T JUST INSPECT A FEW DOORS, A FEW WINDOWS A FEW HEATERS, A FEW RECEPTACLES, AND SO ON, WE INSPECT THEM ALL. WE DON'T INSPECT
ROOFS OR CHIMNEYS USING BINOCULARS AS MANY OF OUR COMPETITORS DO.

STATUS REPORTS ARE SIMPLE TO FOLLOW WE DON'T USE ANY SPECIAL SYMBOLS OR LANGUAGE THAT
WOULD MAKE IT DIFFICULT TO UNDERSTAND WHAT IS BEING SAID IN THE REPORT. OUR REPORTS ARE
CONCISE, GIVING PURCHASERS A  SOLID OVERVIEW OF THE PROPERTY.
 

A CERTIFIED ENGINEERING TECHNOLOGIST WITH  OVER 32 YEARS EXPERIENCE
IN  THE DESIGN, CONSTRUCTION AND INSPECTION FIELD AND HAVING DONE MORE
THAN 2500 HOME AND REAL ESTATE INSPECTIONS DOES ALL INSPECTIONS AND WRITES ALL REPORTS.

5 1/2 TO 6 1/2 HOURS IS THE STANDARD ON-SITE  INSPECTION TIME FOR STATUS.
THE STANDARD IN THE INDUSTRY IS 2 TO 4 HOURS.

AT STATUS, WE DON'T DO "WALK-THROUGHS "BECAUSE THEY PROVIDE TOO LITTLE PROTECTION
FOR SUCH A MAJOR INVESTMENT.

YES, PROVIDED THAT THE VENDOR AGREES TO YOUR PRESENCE, IN ADVANCE. TO
AVOID DIFFICULTIES IT IS BEST TO DISCUSS YOUR INTENTION WITH YOUR AGENT,
OR IN THE CASE OF A PRIVATE SALE, WITH THE VENDOR, BEFOREHAND.
AT STATUS, WE THINK IT'S A GOOD IDEA TO BE PRESENT DURING PART, IF NOT ALL, OF THE INSPECTION!

REPORTS ARE PRESENTED ON THE DAY OF THE INSPECTION. THERE ARE
DEFINITE ADVANTAGES IN HAVING THE PURCHASER'S AGENT ATTEND THE
PRESENTATION BUT THIS IS AT THE PURCHASER'S DISCRETION. IF NEED
BE, THE REPORT CAN BE FAXED, MAILED, E-mailed OR COURIERED TO THE PURCHASER..

• ON AVERAGE A 'STATUS' COMPREHENSIVE PRE-PURCHASE INSPECTIONS

RANGE FROM $250 TO $375 EXCLUSIVE OF HST (TAXES)
• GIVEN THE VALUE OF THE INFORMATION IN THE REPORT AND THE

MONEY IT CAN SAVE A PURCHASER, OUR REPORTS PAY FOR THEMSELVES
MANY TIMES OVER..
• REMEMBER, IT'S NOT THE INSPECTOR'S FEE THAT PROTECTS YOU, IT'S

THE INSPECTOR'S QUALIFICATIONS AND EXPERIENCE THAT COUNT.
• SCRIMPING ON THE INSPECTOR IS PLAIN STUPID WHEN YOU'RE TRYING
  TO PROTECT SUCH A MAJOR INVESTMENT.

WE OFFER 'BASIX' REPORTS WHICH COVER THE EIGHT  MAJOR COMPONENTS
OF BUILDING CONSTRUCTION AT LESSER COST. AS WELL, WE OFFER
CUSTOMIZED REPORTS ON SPECIFIC ITEMS OF CONCERN. i.e. UFFI,
STRUCTURAL, FOUNDATION, CHIMNEY, FIREPLACES, ETC.
 

YES , WE OFFER DRAFTING AND DESIGN, SPECIFICATION WRITING AND AN ESTIMATING SERVICE
TO COMPLIMENT OUR INSPECTION SERVICE.
SHOULD THE PURCHASER BE WONDERING ABOUT THE FEASIBILITY OF A RENOVATION OR NEED
TO KNOW HOW  MUCH MAJOR REPAIRS OR UPGRADES WILL COST, WE CAN PROVIDE THIS INFORMATION
DURING THE PRESENTATION, AS A RULE.
 

• A    AVOID REFERRALS FROM ANYONE WITH A FINANCIAL INTEREST IN THE TRANSACTION.
  B    CONSULT THE YELLOW PAGES UNDER BUILDING INSPECTION SERVICES
  C    ASK FRIENDS, RELATIVES, NEIGHBOURS AND CO-WORKERS FOR REFERRALS.
  D    ASK EACH INSPECTOR YOURSELF, ABOUT THEIR TRAINING, QUALIFICATIONS,
         CREDENTIALS AND THE YEARS OF EXPERIENCE THEY HAVE IN THE INSPECTION BUSINESS.
  E    ASK HOW LONG THEIR ON-SITE INSPECTION TIME IS AND WHAT IS INCLUDED
         IN THE INSPECTION  REPORT.
  F    ASK ABOUT GUARANTEES, BONDING AND LIABILITY INSURANCE.
  G    ASK TO SEE A COPY OF THE INSPECTOR'S INSPECTION FORM. AVOID FORMATS THAT
        ARE PAGES APON PAGES OF CHECK-BOXES WITH BARELY ANY WRITTEN DETAIL.
  H    SCRIMPING ON AN INSPECTOR IS FOOLISH WHEN YOU'RE TRYING TO PROTECT
         SUCH A MAJOR AMOUNT OF MONEY. PRICE SHOULD BE YOUR LEAST CONSIDERATION.
         IT'S NOT THE PRICE DIFFERENCE BUT DIFFERENCE IN QALIFICATIONS AND EXPERIENCE THAT
        PROVIDES PROTECTION FOR YOUR INVESTMENT.   PRICES VARY LITTLE.
  
  IF YOU'RE LOOKING FOR A BARGAIN, CONSIDER THIS. $300 FOR A 3 HOUR
  INSPECTION IS $IOO / HOUR WHILE $300 FOR A 6 HOUR INSPECTION IS $50 / HOUR.
  THE LONGER INSPECTION IS BOUND TO BE MORE THOROUGH.

Avoid Price Shopping
6) Avoid Price Shopping: Home inspection fees vary widely. The price of a quality
inspection generally falls between $300 and $400. Lower fees should be regarded with
suspicion, as they often identify those who are new to the business or who do not spend
sufficient time performing the inspection. A home is the most expensive commodity you
are likely to purchase in a lifetime. One defect missed by your inspector could cost
100 times what you save with a bargain inspection. The best method of price shopping
is to shop for quality.
Excerpt quoted from "What should I look for in selecting a Home Inspector?"
                                 http://www.kohles.com/faq/1.0.4.html
                                 Richard Kohles   Schneidmiller Realty
                                 924 Northwest Blvd.   Coeur d Alene, ID 83814
                                 (208) 665-5234    :(800) 829-2555 x234 : richard@kohles.com

WHILE AGENTS ARE AMONG THE FIRST PEOPLE THAT PURCHASERS SHOULD CONTACT WHEN
BUYING REAL ESTATE,  AGENTS SHOULD NOT BE USED FOR  A SOURCE OF REFERRALS TO INSPECTORS.
WHY?
THERE IS A CONFLICT OF INTEREST WHEN AN AGENT REFERS HIS OR HER 'PURCHASER CLIENT'
TO INSPECTORS BECAUSEAGENTS NORMALLY EARN THEIR COMMISSIONS BASED ON COMPLETED SALES. i.e. AGENTS EARN THEIR LIVELIHOOD DIRECTLY OR
INDIRECTLY BY FULFILLING THE VENDOR'S DESIRE/NEED TO SELL.