Meet Your Adviser Paul A. Rude, owner of Summer Street Inspections, based in Berkeley, California (www.summerinspect.com).

What he doesPaul is a member of the American Society of Home Inspectors who has performed home inspections and consultations for Bay Area homeowners since the late 1980s. As a licensed general contractor, he has also done extensive work repairing structural damage and leaks. Besides all this, he says his most important qualifications include being both nosy and unafraid of spiders.

First house"It was a big old place, built around 1912, in South Berkeley. I bought it before I'd become an inspector-in fact, before the modern inspection industry really got started. I called a contractor I knew, who walked around the house and said, 'It's probably all right.' Then I spent the next ten years dealing with the house's incomplete brick foundation, illegal additions, and ancient roof, plumbing, and electrical systems."

Fantasy houseI'm a big desert fan, so I'd like a place in Baja California, overlooking the ocean. Let's make it complete with a swimming pool, solar power, and a self-contained sewage system. And no matter what or where the house is, I need a good-sized utility area-a basement or a big garage-to keep my tools and do my stuff."

Likes best about his work"I left the contracting business because once you get into a project, you can't leave, no matter how difficult the clients or other aspects of the job are. With inspections, I can do one in a day, then it's over. Also, what keeps me going is the satisfaction of helping people understand things that were formerly mysterious to them-such as the difference between a standard and on-demand water heater. It's like a teaching profession. People respond, and appreciate the help.

Top tip for first-time homebuyers"Get a professional inspection! And no matter where you're buying, watch out for water-whether it's in the basement, the roof, the siding, or whatever. Water is the most destructive element affecting homes, and water damage is difficult or expensive to fix."CD-ROM.

For more tips from Paul Rude, check out his audio interview on the CD-ROM at the back of this book.

Your purchase contract should have included a contingency saying you could back out if you weren't satisfied with the results of one or more professional inspections. While many sets of eyes-the seller's, your real estate agents', and yours-have all examined the property, it's entirely possible that no one had the expertise to identify certain problems. And even if your state requires seller disclosures, these might not be enough to cover all the bases.

This close to the finish line, you might be tempted to close your ears to your prospective home's dirty little secrets-but you'd regret it later. Horror stories abound: people who moved in only to discover that the attic becomes an all-night dance club for squirrels or the basement floods. Avoid this by picking up the phone, scheduling an inspection or two, and paying attention to the results.

This chapter will explain: * what inspections your home needs, and how to arrange and budget for them* what's involved in a general house inspection* how to interpret and follow up on your general inspection report* what's involved in a termite or pest inspection* when you should hire additional, specialized inspectors, and* why inspections of newly built homes-before and after they're done-are a must.

TIP.

You'll be happy you did: Over three-quarters of all homebuyers obtained a home inspection before buying their homes, and nearly 100% of these people believed the home inspection was a good value. ( Over three-quarters of all homebuyers obtained a home inspection before buying their homes, and nearly 100% of these people believed the home inspection was a good value. (Source: American Society of Home Inspectors, American Society of Home Inspectors, www.ashi.org.)

Inspection Overview: What, When, and at What Cost?

Most buyers arrange one general inspection of their house's physical and structural components, and one pest inspection (which institutional lenders usually require). In addition, buyers may also commission specialized inspections, perhaps to take a second look at a problem area like the foundation or roof, to bring in a structural engineer, or to check out something that general inspectors don't, like the condition of the hot tub. In areas where certain house features or problems are common, such as septic tanks, swimming pools, or radon, local home inspectors may add these to their inspection (at a price).

No state's laws require you to have a home inspection, so how many inspectors you bring in and how much you ask them to inspect is mostly up to you. But even if you feel confident that the seller has provided complete disclosures, or even if the seller has given you a copy of an inspection report that he or she commissioned, you should get your general inspection done. The same is true if you're buying a property "as is." Just one overlooked problem can end up costing you thousands.

SEE AN EXPERT.

The tighter your budget, the more important the inspection. According to our adviser, California home inspector Paul A. Rude, "If you have gobs of money and something wrong turns up after you move in, you can simply fix it. But if a $1,000 repair is going to break the bank, then you need to not only have the inspection, but to choose your inspector carefully." According to our adviser, California home inspector Paul A. Rude, "If you have gobs of money and something wrong turns up after you move in, you can simply fix it. But if a $1,000 repair is going to break the bank, then you need to not only have the inspection, but to choose your inspector carefully."

General inspections are a relative bargain-usually between $200 and $600, depending on the house's square footage, sale price, age, and number of rooms, as well as local market conditions. Specialized inspections vary more in price, from around $100 for a radon test to $2,000 for an engineering inspection. You won't necessarily need to pay on the spot; inspections can usually be paid through escrow, and sometimes the cost can be folded into your loan. (Or you may have already gotten the seller to agree to pay for them, as discussed in Chapter 10.) TIP.

Don't rely on a home warranty to cover undisclosed defects. Most cover only appliances and other mechanical systems (such as heating) and leave out expensive structures or problem areas (such as the foundation, walls, or roof). Chapter 13 provides details on home warranties, both for preowned and newly built houses. Most cover only appliances and other mechanical systems (such as heating) and leave out expensive structures or problem areas (such as the foundation, walls, or roof). Chapter 13 provides details on home warranties, both for preowned and newly built houses.

House Calls: Your General Inspection

The general inspection will usually be the most important inspection your house has. Its findings could make a difference to both your current negotiations with the seller and your future home maintenance budget.

What a General Inspection Includes

Assuming you use a professional inspector (licensed in states where that's offered), the investigation and resulting report will probably cover all the items listed on the Standard Inspection List, below. The report will describe the items' condition and any defects or damage.

But not all home inspections are created equal. In fact, many states don't offer an inspector's license, so people with varying specialties-or lack thereof-can decide what services to charge you for in the name of a "home inspection." Most good general inspectors started out as either contractors, builders, or engineers. (We're assuming you've already evaluated the inspector's basic qualifications, as covered in Chapter 5.) Before hiring the inspector, confirm exactly what will be inspected, what won't be (perhaps because the inspector isn't licensed to do so), and what inspections (such as radon, or simply the inspector crawling into the subspace or attic) are optional for an extra fee.

CD-ROM.

Check out an actual inspection report: You'll find one (with personal information removed) in the Homebuyer's Toolkit on the CD-ROM. A sample of this inspection report is shown below. You'll find one (with personal information removed) in the Homebuyer's Toolkit on the CD-ROM. A sample of this inspection report is shown below.

Sample From Home Inspection Report, by Paul A. Rude ROOF, GUTTERS, AND ATTICMy roof inspection is limited to a visual evaluation of the overall condition. I do not guarantee that the roof will not leak. Roof leaks are commonly due to defects that are concealed by the roofing surface. Identification of leaks typically requires testing or removal of roofing materials, which are beyond the scope of my inspection.RoofingThe roofing is of modified bitumen. This is a petroleum-based material applied in sheets sealed at the edges with heat. I used a ladder to reach the roof and walked on the surface.I was told that the roofing was installed about seven years ago, which is consistent with the appearance. It shows moderate wear. This type of roofing may last from 10 to 20 years, depending on environmental conditions and the quality of installation. I offer no warranty as to the remaining service life.The roofing is wrinkled and loose from the sheathing at the left front corner. This usually indicates an installation defect. These areas should be checked regularly in routine maintenance, and may need repair sooner than the rest of the roof.The roofing has a reflective coating to reduce deterioration due to sunlight. This coating is worn. I recommend that a qualified roofer apply a new coat. Depending on the material used, it will probably need to be renewed every few years to achieve the maximum useful life from the roofing. There are several trees near the roof. Plants touching the roofing can damage it, and leaves on the roof hold water, increasing the chance of leaks. I recommend that you keep trees and other plants trimmed away from the roof.All roofs require routine maintenance and occasional repairs. You should have a roofer examine the roof periodically and perform any repairs required to keep it waterproof and extend the service life. After initial repairs and maintenance, a maintenance check every two or three years should be adequate. As the roof ages, maintenance will be needed more often.FlashingsEdges, openings, and intersections in a roof should be protected by transition pieces called "flashings," usually made of metal. Visible portions of the flashings appear to meet generally accepted standards. Much of the flashing material is concealed by the roofing, siding, and other surfaces.Part of the tile liner for a "patent" flue that once served a kitchen range has been removed at the rear. The metal shroud for the flue is still in place but it is not weatherproof; rain could blow into it, resulting in leaks. I recommend that a roofer modify it as needed to prevent leaks.Roof DrainageThe main roof has a single drain opening through the parapet wall to a downspout at the right rear. There is a second opening for the small roof area above the front porch.The drain opening is small and could easily be clogged with leaves. I recommend that it be cleared regularly as needed and the downspout flushed with a hose to ensure it is not clogged.

Sample Report. 2006Standard Inspection List Most inspections that meet industry standards will evaluate the house and garage, from top to bottom, including the foundation; electrical and plumbing systems; roof; heating, ventilation, and air-conditioning systems; water heater; waste disposal; doors, windows, floors, and ceilings; walls; exterior, including grading, drainage, retaining walls, porches, driveways, walkways, and any plans or vegetation affecting the house's condition; insulation; smoke detectors; floor surfaces and paint; and fireplaces and chimneys. If you're buying a townhouse or condo, some of the exterior items, such as drainage, may not be included, because they're not part of your property.

What a General Inspection Doesn't Include

Although the list above looks pretty comprehensive, it doesn't cover every possible problem area of a home. When you get the inspection report, you'll see that it lists items or areas the inspector couldn't or wouldn't investigate.

Don't worry-it's not because the inspector is slacking. Instead, many of these disclaimers arise because the inspector can't see through walls, pull up carpeting, or dig underground. And no one expects the inspector to take a dip in the pool or hot tub. Also, because the average home is estimated to contain 60,000 bits and pieces, inspectors may look at only representative samplings of things like electrical outlets and windows.

Safety is another important limitation. The inspector isn't required to risk injury. Exactly where the line gets drawn might vary: One house's crawl space, for example, might be accessible, but another's too narrow or wet. And further limitations can arise if unscrupulous or lazy sellers create barricades, for example by piling up boxes in front of the door to a room or leaning bicycles near the back of a garage. If this happens, contact the seller and ask that the blockage be removed immediately. If that doesn't work, follow up with a request that the seller clear the area and allow it to be inspected again, at the seller's expense.

If your property has unusual features such as a swimming pool, hot tub or sauna, playground equipment, security system, seawall, breakwall, or dock, the inspector will probably not evaluate these. The exception would be if the inspector happens to have specialized expertise and is willing to put it to use. If you know these will be issues for you, seek out inspectors with those specialties.

Finally, every property has a unique array of appliances, furnaces, water heaters, and other manufactured items-some of which may have been recalled due to safety concerns. Most experienced inspectors know about major recalls and will mention them in their reports. But to be thorough, do your own search by noting the brand name, manufacturer, model, and serial number, then searching the site of the U.S. Consumer Product Safety Commission, www.cpsc.gov.

Tagging Along at Your General Inspection

You and your real estate agent normally can-and should-follow along while your house is being inspected. There's nothing like seeing problems for yourself and being able to ask questions.

TIP.

"If an inspector asks you not to show up until he or she is finished, hang up the phone," advises retired Austin, Texas, inspector Paul MacLean. You should wonder why someone you hired doesn't want you-the paycheck-to watch how he or she works. You should wonder why someone you hired doesn't want you-the paycheck-to watch how he or she works.

As a bonus, the best inspectors will tell you practical tips above and beyond the report, such as advice on future maintenance and potential remodeling. Plan on spending two or more hours at the general inspection, and definitely not less than one hour. Many unhappy consumers tell stories of inspectors who took only an hour to complete a general inspection and missed something important.

Here's how to make the most of the inspection: * What to bring. What to bring. Bring pen and paper, and make a list of any potential trouble spots you saw on prior visits-such as cracks in the walls or signs of basement leakage. Also bring copies of any past inspection reports provided by the seller, as well as any disclosure form that the seller filled out. That way the inspector can follow up on the issues mentioned. Bring pen and paper, and make a list of any potential trouble spots you saw on prior visits-such as cracks in the walls or signs of basement leakage. Also bring copies of any past inspection reports provided by the seller, as well as any disclosure form that the seller filled out. That way the inspector can follow up on the issues mentioned.* What to wear. What to wear. Wear comfortable clothing that you don't mind getting scuffed, and bring a dust mask in case you venture into the crawl space or attic or onto the roof. You aren't obligated to follow along, and the inspector might not encourage it (you'll be doing so at your own risk-no fair suing the inspector if you're injured). Wear comfortable clothing that you don't mind getting scuffed, and bring a dust mask in case you venture into the crawl space or attic or onto the roof. You aren't obligated to follow along, and the inspector might not encourage it (you'll be doing so at your own risk-no fair suing the inspector if you're injured).* Bring a camera or video recorder. Bring a camera or video recorder. Pictures and videos of the inspection will remind you of problems that the inspector said didn't need immediate attention but should be watched. Ask the inspector for permission first-some aren't comfortable with being photographed or recorded. Pictures and videos of the inspection will remind you of problems that the inspector said didn't need immediate attention but should be watched. Ask the inspector for permission first-some aren't comfortable with being photographed or recorded.* What not to do. What not to do. Don't crowd the inspector or interrupt with questions about your remodeling plans. Be attentive, but give the inspector space to do his or her job. Try not to be one of the buyers who blurts out nervous questions like, "Is everything okay?" before the inspector has even had a chance to look. Save unanswered questions for the end of the inspection, or ask the inspector to orally summarize the findings. Don't crowd the inspector or interrupt with questions about your remodeling plans. Be attentive, but give the inspector space to do his or her job. Try not to be one of the buyers who blurts out nervous questions like, "Is everything okay?" before the inspector has even had a chance to look. Save unanswered questions for the end of the inspection, or ask the inspector to orally summarize the findings.

TIP.

Don't make it a family affair. We asked California inspector Paul A. Rude what he wishes people would do differently during the inspection. His reply: "Bring fewer people along. Often the whole family wants a chance to see the house, and they're feeling festive, planning for new curtains, and maybe taking care of a crying baby. All of this is distracting if I'm trying to explain why the house may need $100,000 in repairs." We asked California inspector Paul A. Rude what he wishes people would do differently during the inspection. His reply: "Bring fewer people along. Often the whole family wants a chance to see the house, and they're feeling festive, planning for new curtains, and maybe taking care of a crying baby. All of this is distracting if I'm trying to explain why the house may need $100,000 in repairs."

Say What? Understanding Your General Inspection Report

Within two to three days of the general inspection, you should receive a written report, several pages long. It may go straight to your agent, so be sure to get a copy. (We know of at least one horror story where an agent went on vacation and forgot to forward an inspection report containing information about sewage issues-the buyers had to spend thousands of dollars on repairs after moving in.) The best inspectors give you a descriptive narrative report. (The Homebuyer's Toolkit on the CD-ROM includes a sample, from inspector Paul A. Rude.) Some include digital photos (nice, except that some inspectors use them to replace actual explanations of the problem). At the other end of the spectrum, cookie-cutter franchise operations give you a computer-generated, check-the-box report, where each item may be simply marked "serviceable," "not serviceable," "repair or replace," or something equally vague.

No matter what your report looks like, read the entire thing, even if your agent summarizes it for you. Realize, however, that some of the report is just boilerplate-for example, disclaimers regarding areas that the inspector takes no responsibility for. The purpose is usually to head off lawsuits.

Shoulda read the report. After the inspection, Julian's real estate agent told him that the report showed "no major defects." Julian's exact words were, "Awesome." He closed the sale and moved in. That winter, Julian watched water leak into the house through its aged roof. He says, "I finally read the report, ready to yell at the inspector for incompetence. But no, the leaky roof was right there! There went hundreds of dollars that I could have asked the seller to pay if I'd been paying attention." After the inspection, Julian's real estate agent told him that the report showed "no major defects." Julian's exact words were, "Awesome." He closed the sale and moved in. That winter, Julian watched water leak into the house through its aged roof. He says, "I finally read the report, ready to yell at the inspector for incompetence. But no, the leaky roof was right there! There went hundreds of dollars that I could have asked the seller to pay if I'd been paying attention."

How Bad Is It, Really?

Every house has problems, and most can be fixed or lived with. The seller has no obligation to provide you with a flawless house, and the inspection isn't a repair list-it just gives you an opportunity to negotiate. Plus, the inspector wouldn't be doing the job right without describing everything from a missing cover plate on an electrical outlet to a crack in the foundation. And the inspector has to worry that if the report leaves something out, you might one day respond with a lawsuit.

The inspector should be able to prioritize the necessary repairs and explain whether they need immediate work. But don't expect the inspector to tell you that your house has "passed" or "failed." While buyers and agents frequently ask whether a problem is serious or is a "defect," some inspectors rightfully shy away from making such judgments. One buyer's defect is another buyer's "no big deal." The inspectors don't want to scare you unduly-nor do they want you to later complain that they didn't ring sufficiently loud alarm bells.

Don't ask the inspector to give you an exact estimate of repair costs, either. That's partly because you shouldn't be hiring the inspector to do the repairs (that would create a conflict of interest), so any cost estimate is hypothetical. It's also because some repairs may need a closer look and can be approached in more than one way-for example, crumbling mortar between chimney bricks might be fixed with either a quick patch or a complete teardown and rebuild. You and a separately hired contractor would decide on the solution.

It's okay to contact the inspector after reading the report and ask for clarification or more information. Like every professional, inspectors have their own jargon, and you may need a translation of some of the report's more arcane language. Other common questions include, "How important is this really?" or "How soon do I need to fix this?" And if you notice something missing from the report, ask for a written addition.

Getting Estimates for Repair Needs

If not to the inspector, to whom do you talk about the cost and other details concerning repair needs that turned up in the report? You'll need to make some educated but quick decisions about whether the problems justify backing out of the sale or at least asking the seller to pay for the repairs (as discussed in Chapter 11). Your inspector may be able to recommend follow-up professionals. Your real estate agent can also help here.

Termite or Pest Inspections

Years ago, most everyone got a pest inspection, to check for fungus, dry rot, and "wood-boring organisms"-creepy crawlies that dine on homes, such as termites, carpenter ants, powder-post beetles, and carpenter bees. And almost no one got a general home inspection. Today, the pattern has reversed. The standard home inspection is the broader, structural type, while pest inspections remain a separate specialty.

In regions with pest problems, it's common and wise to get both types of inspections. Most parts of the United States do have some sort of pest trouble, whether it's termites in the West, old-house borer beetles in the East, or carpenter ants in the Midwest and South. In fact, your bank or lender will probably insist on a pest report, and that any problems be corrected before you move in.

Your seller may have had a pest inspection done before putting the house on the market-and if you're lucky, has already had the repairs done. But, as with every inspection, you may still want to have your own, independent one done. Ask your real estate agent about the reputation of the seller's pest inspector. Your bank or lender, in fact, may demand a second inspection after the first one is more than 30 days old (these house pests are quick eaters).

How Gross Are They? Termite Facts * Termites actually eat wood (well, technically, protozoa in their gut do the digesting). All that wood gives the termites gas-enough, some believe, to boost global warming.* Termites move slowly but will keep on trekking for up to one-half an acre in search of a tasty wood source.* A termite colony may contain between 100 and 1 million-plus termites.* Subterranean termites can, in a major infestation, destroy a house in two years.* At least you're not househunting in Africa-one species there builds cement-like mounds that are the largest non-man made structures in the world. If the termites were as big as people, their towers would be 180 stories high.

In a few states, a mixed pest/home inspection is common or even standard. But it's worth trying to find separate specialists if you can, since finding one who is truly expert in both house structure and the various pests is difficult. Adding to the confusion, a regular home inspector may alert you to obvious signs of pests. (Though they may have to be careful how they word this: In Washington State, for example, it's illegal for anyone but a licensed pest inspector to make any determinations about pests in your home.) The general inspector will then likely suggest a follow-up pest inspection.

Budget around $150 to $300 for the pest inspection. Plan to tag along-it won't take as long as the general inspection, usually no more than one hour.