1. HOME INSPECTIONS What really matters ? A presentation for real estate professionals Brought to you by The National Association of Certified Home Inspectors Chicagoland Chapter www.NACHIChicago.org www.NACHI.org America’s Elite Home Inspection Organization

2. Contents of presentation The role of your home inspector. The role of your home inspector. How we can assist you. How we can assist you. Types of inspections. Types of inspections. Our standards of practice. Our standards of practice. What are we looking at ? What are we looking at ? What are our limitations ? What are our limitations ? Our code of ethics. Our code of ethics. What do we often find ? What do we often find ? What really matters to your clients ? What really matters to your clients ? All about NACHI. All about NACHI. All about your NACHI inspector. All about your NACHI inspector. For further information For further information

3. The role of your Home Inspector To provide an unbiased, written report based on the condition of the home. To provide an unbiased, written report based on the condition of the home. To report the condition of the homes structure, roof and major systems. To report the condition of the homes structure, roof and major systems. To advise the client as to areas that are, unsafe, require immediate repairs or maintenance and sensible safety related updates. To advise the client as to areas that are, unsafe, require immediate repairs or maintenance and sensible safety related updates. To help you help the client to make informed decisions about the home To help you help the client to make informed decisions about the home

4. Different Levels of Defects Watch List: An item that is not currently a problem, but has a high likelihood of failing in the near future. Watch List: An item that is not currently a problem, but has a high likelihood of failing in the near future. Examples: Examples: –Older Roof –Older Water Heater or Furnace –Recommendations for regular maintenance like window caulking

5. Different Levels of Defects Repair and/or Replace: An item that is defective and should be repaired in order to guard against more damage. Repair and/or Replace: An item that is defective and should be repaired in order to guard against more damage. Examples: Examples: –Roof Flashing –Leaky Pipes –Damaged Electrical Outlets

6. Different Levels of Defects Significantly Deficient: Defined in State Law as “Any system of component that is unsafe of not functioning”. Significantly Deficient: Defined in State Law as “Any system of component that is unsafe of not functioning”. “Not Functioning” is easy. It does not work, i.e., the furnace does not work. “Not Functioning” is easy. It does not work, i.e., the furnace does not work. Unsafe is defined against current National Standards, not local codes. Unsafe is defined against current National Standards, not local codes.

7. Different Levels of Defects Unsafe: Defined in State Law as “ A condition in a system or component that is a significant risk of personal injury or property damage during normal, day-to-day use. The risk may be due to damage, deterioration, improper installation or a change in accepted residential construction standards. Unsafe: Defined in State Law as “ A condition in a system or component that is a significant risk of personal injury or property damage during normal, day-to-day use. The risk may be due to damage, deterioration, improper installation or a change in accepted residential construction standards.

8. Different Levels of Defects Being in accord with local building codes is not the same as being safe. Being in accord with local building codes is not the same as being safe. Codes are a minimum standard of required work. Codes are a minimum standard of required work. Codes vary from town to town. National standards do not. Codes vary from town to town. National standards do not. A house can be perfectly compliant with code, but be perfectly unsafe. A house can be perfectly compliant with code, but be perfectly unsafe. Inspectors are required, by law, to call out all “Significantly Deficient” items. Inspectors are required, by law, to call out all “Significantly Deficient” items.

9. What can we do you ? What can we do for you ? We We promise to act professionally towards you and the client at all times. undertake to deliver a comprehensive and unbiased report to your client in a timely manner. are happy to discuss the findings of our report with you at your clients request. guarantee to perform the inspection exeeding with industry standards and in full compliance with any state requirements. Professional Service + An Informed Buyer = A quick closing

10. of inspections Types of inspections Pre-listing inspections: Give the seller the opportunity to correct defects prior to listing, provide a more accurate disclosure, take nasty surprises out of the equation and speed up the closing. Buyers inspections: Give the potential purchaser and their Realtor the tools needed to make an informed decision about the condition of the home and reduce liabilities for all involved. We also offer additional services such as Mold, Water Quality and Radon testing. Please call us for more details

11. of inspections Types of inspections New Construction Inspection: Even new houses have problems. With the new paradigm of tear- down builders and large developments, inspection of new construction is crucial. Phased Construction Inspection: Building your own custom home? Why not have an expert on your side? A home inspector can be your eyes and ears on-site.

12. of inspections Types of inspections Remodeling Consultation: Home inspectors are experts on all the newest techniques and materials. If you are planning a remodel, why not have an inspector help you decide the most cost effective way to do it? Renter’s Security Deposit Inspection: Have a certified home inspector document the condition of your rental property before you rent it. Avoid the hassle of security deposit disputes with renters.

13. Our Standards of Practice We are required to meet standards of practice as laid out by our trade organization or state licensure. We are required to meet standards of practice as laid out by our trade organization or state licensure. We report on the materials and methods used in the construction of dwellings and their systems and report on their overall condition based on a visual and non- invasive inspection. We report on the materials and methods used in the construction of dwellings and their systems and report on their overall condition based on a visual and non- invasive inspection. For more details about our minimum standards of practice, please visit: For more details about our minimum standards of practice, please visit: http://www.nachi.org/sop.htm

14. What are we looking at ? Roof system & coverings. Exterior & lot. Basement, Foundation, Crawlspace & Structure. Heating systems.. Cooling systems. Plumbing fittings & fixtures. Electrical supply & distribution. Fireplace & chimney. Attic & Insulation. & Interior. Doors, Windows & Interior. The report will contain comments on the condition of the following systems For more information on the above please visit: http://www.nachi.org/sop.htm http://www.nachi.org/sop.htm

15. What are our limitations ? A home inspection is NOT a warranty and implies no guarantee of the future condition of the home or its systems. A home inspection is NOT a warranty and implies no guarantee of the future condition of the home or its systems. The inspector can only report on systems that they can see based on reasonable access. The inspector can only report on systems that they can see based on reasonable access. The report should only be considered “a snapshot in time” and can only represent conditions viewed on the day and time of the inspection. The report should only be considered “a snapshot in time” and can only represent conditions viewed on the day and time of the inspection. An inspection is not technically exhaustive. An inspection is not technically exhaustive. When necessary the inspector will defer to a specialist contractor or other professional for further evaluation. When necessary the inspector will defer to a specialist contractor or other professional for further evaluation.

16. What do we often find ? Perhaps the most commonly reported problem is with unsafe wiring issues, in this case the exposed live wires could easily electrocute the occupants, Another common electrical problem with an ungrounded outlet having been placed inside the shower area. SHOCKING !! Obviously a little extreme, but the home inspector will frequently find unknown problems with the roof and roof coverings. But weedwacking the roof ? All pictures courtesy of various NACHI members copyright NACHI 2000-2004

17. What do we often find ? Unfortunately not all chimney problems are this easy to spot. The home inspector is trained to recognize visual deficiencies in many different systems. Inspectors will often see materials that have been known to present problems, in this case a type of siding that was subject to a class action suit. Would most people realize that this water heater is in a dangerous condition, and as well as the fire issue is not venting properly and could kill the occupants. All pictures courtesy of various NACHI members copyright NACHI 2000-2004

18. What really matters to your clients ? We provide an easy to understand inspection report, complete with color photos and diagrams, pointing out to the potential buyer the overall condition of the home and the areas that may need repair or maintenance. We provide an easy to understand inspection report, complete with color photos and diagrams, pointing out to the potential buyer the overall condition of the home and the areas that may need repair or maintenance. We will educate the buyer, by giving them an impartial evaluation of the visible structure and systems. We will educate the buyer, by giving them an impartial evaluation of the visible structure and systems. We are not concerned with the cosmetic condition of the home unless that is indicative of deeper lying problems We are not concerned with the cosmetic condition of the home unless that is indicative of deeper lying problems We are not here to “kill the deal” but we have all inspected a few homes that have committed suicide in front of us !! We are not here to “kill the deal” but we have all inspected a few homes that have committed suicide in front of us !!

19. What really matters ? The following article was written by NACHI Founder Nick Gromicko to help educate consumers about the home inspection process. Buying a home? The process can be stressful. A home inspection is supposed to give you peace of mind, but often has the opposite effect. You will be asked to absorb a lot of information in a short time. This often includes a written report, checklist, photographs, environmental reports, and what the inspector himself says during the inspection. All this combined with the seller's disclosure and what you notice yourself makes the experience even more overwhelming. What should you do? Relax. Most of your inspection will be maintenance recommendations, life expectancies and minor imperfections. These are nice to know about. However, the issues that really matter will fall into four categories:

20. 1.Major defects. An example of this would be a structural failure. 2.Things that lead to major defects. A small roof-flashing leak, for example. 3.Things that may hinder your ability to finance, legally occupy, or insure the home. 4.Safety hazards, such as an exposed, live buss bar at the electric panel. Anything in these categories should be addressed. Often a serious problem can be corrected inexpensively to protect both life and property (especially in categories 2 and 4). Most sellers are honest and are often surprised to learn of defects uncovered during an inspection. Realize that sellers are under no obligation to repair everything mentioned in the report. No home is perfect. Keep things in perspective. Don't kill your deal over things that don't matter. It is inappropriate to demand that a seller address deferred maintenance, conditions already listed on the seller's disclosure, or nit-picky items.

21. Our code of ethics (abridged) The Inspector shall be fair, honest, impartial, and act in good faith in dealing with the public. The Inspector shall be fair, honest, impartial, and act in good faith in dealing with the public. The Inspector will have no undisclosed conflict of interest with the client, nor will the Inspector accept or offer any undisclosed commissions, rebates, profits, or other benefit The Inspector will have no undisclosed conflict of interest with the client, nor will the Inspector accept or offer any undisclosed commissions, rebates, profits, or other benefit The inspector shall not perform or offer to perform, for an additional fee, any repairs or associated services to structure on which the inspector or inspector's company has prepared a home inspection report, for a period of 12 months The inspector shall not perform or offer to perform, for an additional fee, any repairs or associated services to structure on which the inspector or inspector's company has prepared a home inspection report, for a period of 12 months For more details about your inspectors ethical obligations please visit: www.nachi.org/code_of_ethics.htm For more details about your inspectors ethical obligations please visit: www.nachi.org/code_of_ethics.htm www.nachi.org/code_of_ethics.htm

22. All about NACHI The National Association of Certified Home Inspectors Home of Americas elite home inspectors. Home of Americas elite home inspectors. Over 10,000 Certified Home Inspectors across the US and Canada. Over 10,000 Certified Home Inspectors across the US and Canada. Our members meet the highest standards of practice, ethics and continuing education. Our members meet the highest standards of practice, ethics and continuing education. The best inspectors can be found at The best inspectors can be found at www.findaninspector.us www.findaninspector.us For more information on NACHI go to www.nachi.org www.nachi.org