As homebuyers search for properties, they may come across older inspection reports. Sellers may provide potential buyers with a pre-listing inspection report or a pre-purchase inspection report from a previous buyer who terminated their contract. While these reports can provide valuable insights, it’s crucial to understand the limitations of making decisions based on a report intended for another party. Here, we break down some essential considerations for potential buyers who are relying on these reports:
1. Seller-provided reports do not replace the due diligence process.
Seller-provided reports can help potential buyers decide if they want to make an offer or not, but once under contract, serious home buyers should hire their own inspector, which ensures that they have updated information, full rights to their reports and that they can discuss findings freely with inspectors to understand the property’s current condition best. While an older inspection report can be a helpful reference, it should not replace a current inspection intended for their eyes only. Real estate conditions can change rapidly; relying on outdated or incomplete information can lead to unforeseen issues.
2. Inspector Limitations
In North Carolina, licensed home inspectors are bound by state regulations and client agreements. Inspectors can only discuss their findings with the original clients or their agents. This confidentiality means inspectors can only share their findings with third parties with proper authorization.
If a potential homebuyer wishes to discuss the details or findings of a previous inspection report, they must obtain written permission from the original client. This step ensures compliance with state statutes governing home inspections. Remember that gaining permission from the report owners may come at a cost- the original client may understandably try to recoup some of their investment in a property they no longer want to buy.
3. No Site Visits or Additional Inspections
Consultations for older reports will not include site visits or further property evaluations. (Note: If an NC home inspector returns to the site and evaluates more than two systems in a home, the state requires them to generate a written report and describe why their report was limited—typically, this would drive up the cost of the consultation close to what a full home inspection would be.) The consultation is typically conducted via phone or video meetings to comply with state statutes. The purpose of the consultation is to help the potential buyer understand the existing report.
4. Recourse Limitations and Changing Conditions
If there are any errors or omissions in the original report, the new interested party will have no recourse if they rely solely on that report. The consultation also does not reflect changing conditions or repairs since the inspection.
5. Compensation for Consultations
When interested parties successfully obtain permission from the previous client and wish to discuss the report with the inspectors, most inspection companies will charge an hourly rate for their consulting services. Our fee is $175 for a 45-minute consultation, allowing us to review the report in detail. This service allows potential buyers to ask questions and better understand the findings related to their potential investment.
While we offer this service to clients who are unsure about making an offer, we always recommend a full home inspection as part of their due diligence. In most cases, we apply the consulting fee toward the cost of the inspection.
Conclusion
Navigating the world of home inspections can be complex, especially when dealing with previous reports. Understanding these key points will empower homebuyers. Serious homebuyers should always prioritize securing their own inspection for peace of mind and to protect their investment in what is likely one of the biggest purchases of their life.
If you have further questions or need assistance, don’t hesitate to contact a licensed home inspection professional. We’re here to help guide you through every step of the process!
