Has anyone thought about becoming a Home Inspector?

[Lanny A Freng]

liability is high, you need xray vision to see into walls, under floors and into pipe. your the first person everyone will want to sue if the light bulb burns out. imho

If you educate your customer on what you can and can not inspect this is never an issue. The general public may think that you can inspect everything but when you explain why you cant they will accept it. Just ask em when you are standing in the bedroom to tell you what kind of insulation is in the attic without opening the scuttle. They get the idea. It is also stated in the contract that you can not inspect anything that is not readily visible. ie inside wall cavity, inside pipes, undergroud systes etc... but if there is barely any water pressure you had better be commenting that pipes most likely are corroded. Use the clues and CYA...

 

[Dan/Fla]

Doesn't our Scope of Work cover that?

I asked an attorney who I do assignments for, because I too thought about it.. His comment was if someone knew you are an appraiser, but as a friend asked you what do you think my house is worth. Is that not an oral estimate of value? If sued you may win but at what cost? Attorney fees, lost time... He went on if you disclose you are a Home Inspector, but did not do a home inspection, will a judge accept that argument? Because at that point what you meant means nothing.

I know a former appraiser who was sued because about 2 years after the borrower bought the home (built on piers) the fireplace fell thru the floor. Yes the appraiser won but lost almost $10,000 in time and attorney fees. I wonder if he would have had more problems winning if he was a Home Inspector too.

I may be wrong, and believe me I am often. If the owner a has a problem with the home in a few years.. They will sue any body and everybody and if you have 2 different E & O policies you become U.S. Prime.

 

[Mr Rex]

I asked an attorney who I do assignments for, because I too thought about it.. His comment was if someone knew you are an appraiser, but as a friend asked you what do you think my house is worth. Is that not an oral estimate of value? If sued you may win but at what cost? Attorney fees, lost time... He went on if you disclose you are a Home Inspector, but did not do a home inspection, will a judge accept that argument? Because at that point what you meant means nothing.

I know a former appraiser who was sued because about 2 years after the borrower bought the home (built on piers) the fireplace fell thru the floor. Yes the appraiser won but lost almost $10,000 in time and attorney fees. I wonder if he would have had more problems winning if he was a Home Inspector too.

I may be wrong, and believe me I am often. If the owner a has a problem with the home in a few years.. They will sue any body and everybody and if you have 2 different E & O policies you become U.S. Prime.

So have you given up appraising for fear of being sued?

 

[Lanny A Freng]

I know a former appraiser who was sued because about 2 years after the borrower bought the home (built on piers) the fireplace fell thru the floor. Yes the appraiser won but lost almost $10,000 in time and attorney fees. I wonder if he would have had more problems winning if he was a Home Inspector too.

In all of my appraisals I state this is not a home inspection and the subject could have issues that may not be discovered by the physical inspection that the appraiser does. If the buyer has any concerns about possible shortcomings they are urged to get an actual home inspection ---Not these exact words but you get the gist. Even if he was a home inspector he was not paid for a home inspection and I think his scope of work would cover him. I am in favor of the loosing party to have to pay all attorney fees!!!!!!!!!

 

[Dan/Fla]

So have you given up appraising for fear of being sued?

No but I am very careful when anyone asked me what they think their home is worth.

Lanny A Freng:

We all are careful in stating in an appraisal this is not a home inspection, (In my case ) Nor is the appraiser trained in Home Inspection. But no matter what we say in our appraisal reports... There are those would do not read every word written in them.

I think a Home Inspector has a trained eye, and they should automatically see details that I would not see in a normal interior inspection. No I wish anyone who wants to becomes a Home Inspector all the best, and I hope that they never get sued as an appraiser or a home Inspector. Me my income comes from appraising and I do not want to miss that up.

It is not what is the truth; it is what someone else perceives as the truth. Me I would not take the chance.. But again that is just me. But then again when I was a trainee my supervisor, stated An appraisal is 15% determining a value 85% covering you’re a__

 

[Ray Miller]

Have a friend who is an HI. When times are good he does it full time, when times are bad like he goes fishing or dose more work on his farm.

He said times are bad now and boys and girls from the Madison Area Tect Colleges are coming out to the rural area and cutting fee's. He said the other day they are charging less then 1/2 of what his fee is for the rural area. He is considering not renewing his license with all the new people in it that don't have a clue about business. His insurance is out of sight, and he said it off to the court house at lease twice a year now. Says he has never lost a case, but people just don't understand the older farm homes that they buy. Always wanting to sue for some things six to twelve months after they bought.

No Thanks.

 

[Mike Garrett RAA]

I wonder if an appraiser could be held to a higher standard, when it comes to inspecting a property, if it were known he or she was licensed as a home inspector?

 

[Mr Rex]

Why would they? You teach USPAP. It's called SOW. Do folks expect you to be able to teach Physics because you teach appraisal CE?

 

[Lanny A Freng]

But no matter what we say in our appraisal reports... There are those would do not read every word written in them.

To that I would say you relied on everything else in the report but you chose to not rely on this statement. It's only stated in the report 3 times sir???

As far as being held to a higher standard I would agree. As long as they agree to pay me $350 more to go through my usual practice as a home inspector. I am methodical about my inspection process and practically every house is approached the same way to ensure that nothing is missed. Many problems wouldnt be discovered even by a great home inspector unless they are at the property for 2+ hours. One clue leads to another problem in many cases and by spending 30 minutes in a house and sticking to my previously agreed upon apprasial SOW there is no way to wrangle all the info I need as an inspector up.