The Make or Break Home Inspection Report

Anchorage’s housing stock is now almost 45 years old which is older than the average age of a buyer! Anxious buyers who after multiple offers and disappointments finally reach an agreed purchase price for a home are then encouraged to have a home inspection.  The importance of the selection of a home inspector should be overlooked.  He/She should be an independent professional not related to any of the parties to the transaction.  

As an active real estate broker for over 40 years, there is nothing more disappointing to a buyer, seller, listing and selling licensee than to have a DFT (deal falls through) as a result of being unable to come to an agreement  for home inspection repairs whether they are for ‘health and safety’ or recommendations. Let me say upfront that perhaps, we as realtors/licensees, need to better our negotiating skills but also learn more about the role of a home inspector’s report and its meaning and ramifications.     

Like general contractors, home inspectors are licensed, bonded and insured and must pass an exam and maintain continuing education.  I do not know the exact number of licensed home inspectors but I was informed there are at least 184 inspectors and/or associate inspectors.  Regardless of the exact number, ‘health and safety’ items as well as recommended repairs frequently become a matter of an inspector’s opinion.  That is because some inspectors fail to report whether or not the item described meets the municipal CODE at the time the home was built. Let me repeat, a home inspector needs to clearly state whether or not the requested repair met the code at the time the home was built.  184 inspectors can have multiple opinions but the one opinion that supersedes all others is the CODE at the time the home was built. What a buyer and their realtor needs to work out is whether or not the item in question is in their opinion an ‘health and safety’ matter.  A good example would be the ballister which is an upright, vertical support pillar found in stairways, balconies, and railings. That CODE has changed from six inches in separation  to four inches. That CODE change may be important for a family with young children or not for an adult household.  However, what is important than the home inspector properly identifies the code change.  Other items that are frequently mentioned for repair or concerns are drainage and driveway repairs.  Landscaping planted too close to a foundation can collect water around a foundation. Retaining walls on a lot created by an owner can also have a negative impact on drainage even though the drainage plan was previously  approved and constructed by the developer or builder.  The same is true for a 20 year old driveway that survives the 2018 earthquake.  Visual identification of those items is appropriate but the recommendation for repair by the inspector creates an overriding concern for the buyer.  

Not all home inspectors use the same different forms.  Many home inspectors are part of a national franchise and must use the form provided by the franchisor. Many of those items needed to be identified in the form are not at all applicable to Alaska. Non franchisees create their own forms with little or no real estate industry input. Unlike the real estate industry of which the vast majority use Alaska Multiple Listing forms or appraisers that have forms approved by national lenders, it would be in all home inspector’s best interests to create a consistent form for Alaska’s use.    

Finally, home inspector reports that are provided to the seller for the purposes of negotiations must become part of the state required property disclosure form, even though the inspector report is valid for only 180 days.  

The importance of the home inspection report should not be overlooked.