ForeclosuresMD - ForeclosuresMass Monthly - Interview With The Expert - Selecting and Working with a Home Inspector (August 2006)

A critical aspect of purchasing a property is making sure that an inspection is completed by a qualified and licensed home inspector. We caught up with Flemming Lund, President of Apex home inspection - a man who has completed thousands of inspections in his 12 years as a professional - for an inside perspective on this important step.

ForeclosuresMass Monthly: Welcome, and thanks for spending some time with us. Let's begin by talking about New England homes in particular. How does an inspection in New England differ from what you might see in other parts of the country?

Flemming Lund: Actually, the difference is pretty minimal. The fundamental pieces of a house don't vary from state to state, and as an inspector, I move through a property here more or less the same as I would anywhere else. We do however, have more older homes here than you're likely to find in other parts of the country.

* Next 37 17 investors only!

FL: With older homes - and here I'm mostly talking about homes over 100 years old - you're more likely to find structural issues. Not only were building codes different back then, over the course of 100 or more years, there has been ample opportunity for home owners to make modifications, many of which may not have been done professionally.

FMM: It's often said that "they don't build homes like they used to," suggesting that older homes were better built. Do you find that to be true?

FL: Well, older homes had craftsmanship that you simply won't find today (today it's all ready-made and then assembled). In that sense, absolutely, newer homes may lack the same touch and charm.

But the building requirements... lumber dimensions, for example... are higher today then years ago (of course the lumber itself was of higher quality then too, so it's a mixed bag). But no, in answer to your question, I would not agree that older homes are necessarily of higher construction quality.

FMM: And how about foreclosure inspections? How do those differ from more standard home inspections?

FL: Possibly not at all, assuming we are able to do a full inspection. Often however, it's an auction situation and I can't do one of those. In that case, I make myself available to offer a "consulting opinion," which means that I tag along with the potential buyer and offer my perspective on whatever we see. This is not at all the same as a "home inspection," however.

FMM: Let's switch gears and talk about finding a home inspector. How should an investor begin the process?

FL: Most of our clients come from word of mouth, and that's a good place to start. Ask friends who they've used for their own inspections, and see if they have a person or company they'd recommend.

Also, don't focus too much on price. In practice, there is more variation in home inspector qualifications than in price, and given the investment you are about to make, qualifications are important. The American Society of Home Inspectors web site is a good place to start. You can look up inspectors in your area and see who's fully certified by ASHI; it's not an easy certification to get.

FL: Call the inspector up and talk to him or her. Think about whether this is a person you can work with. Remember that ideally, you should be following this person around during the inspection (that's when you'll think of the best questions), and you want somebody you can ask questions of and who is willing to provide answers to your satisfaction. So having a relationship really does matter.

FL: I highly suggest that it not be hand written. Time is of the essence, and ideally the inspector should have a digital camera to provide pictures of issues found during an inspection, and should be willing to e-mail the report to you in short order. This way you can e-mail all or part of the report to other experts, whose opinions you may also need before going through with the purchase.

FL: Inspections are typically priced as a function of house age and square footage. For a 2000 square foot home, for example, you should expect to pay between $300 and $600. But again, don't let price be your only guide. Also, you may need to spend additional money for a pest inspection, radon and water (highly recommended if your water comes from a private well).

FMM: One final question and then we'll let you go. What would you say is the biggest mistake home buyers make relative to inspections?

FL: Not making use of the inspection report. It's more than just a negotiating tool in the purchase - it's a guide to your new home. If I hand you a report that says, for example, that the roof has a problem and further examination is recommended, you need to follow through and have it looked at. Something as simple as a loose tile in the bathroom may be a symptom of a larger problem.

Even if we label it as "marginal" in the report, it should be fully evaluated once the home is purchased. Unfortunately, many people wait until small problems become big.

Flemming Lund is President of Apex Home Inspection, located in Sudbury, Massachusetts. He is a licensed home inspector and a Certified Infrared Thermographer. Apex offers home inspection, well & water testing, radon testing, infrared diagnostic service and more. Contact Apex at www.apexhomeinspection.com or www.infrareddiagnostic.com, or call 1-800-287-1262 (office); 1-508-353-2381 (cell).

Did you like this article? You May Also Like:

	Professional Profile: Using ForeclosuresMass.com Can Ease Mortgage Woes for Investors says one Mortgage Company President Gary Yi, Secure Mortgage Corp. Gary Yi, President of Secure Mortgage Corporation is a very busy man these days. Lower interest rates have caused a boom in purchases and refinancing. There are some tricks to buying foreclosed property that could make the process easier if you are looking for financing...
	Success Strategies: Bank-Owned Properties Offer Terrific Investment Opportunities Eric Woolhiser Real Estate Owned properties or 'REOs' are properties that are taken back by the bank after failing to sell at auction. What many investors don't realize is that there are often attractive opportunities among REOs - provided you know where to look...
	Legal Corner: The Foreclosure Process Charles R. Levin, Esquire Whether you're an investor, home buyer, realtor or mortgage broker interested in working with foreclosures, it's important to understand how the process works from the bank's perspective. Take a moment to put yourself in the shoes of the mortgage holder...
	Feature Article: Four Marketing Secrets Turn Connections into Gold Ken Lizotte, CMC Beyond the usual blah-blah marketing advice of putting up a website, printing out a stack of business cards and designing a lavish four-color brochure, exists four powerful marketing techniques that are so little-used, they can for all practical purposes be labeled "secret." Read on as Ken Lizotte tells all...
	Finance Corner: The Real (Tax) Deal Sonia M. Stingo CPA, PFS, Livingston & Haynes Purchasing real estate as investment property can provide taxpayers with some substantial tax savings. But there are a few pitfalls to look for and consider in your process of acquiring investment property...
	Feature Article: Not Going Anywhere Fast? It's Time to Hire a Coach! David Hilton If you've played on a sports team, you know the value of coaching: a good coach builds your confidence and helps you become a better athlete. A business coach does the same thing. Veteran E-Myth consultant and coach, David Hilton, explains the coaching process, how it can dramatically improve your business, and most important, how it will help you change your perspective - and change your life.
	Feature Article: Five Strategies for Successful Long-Distance Real Estate Investing Holly Daigle Yes, buying properties in other states can be a logistical nightmare – especially when you need a team of real estate experts for each state in which you do business. Real estate investor Holly Daigle explains how to develop foolproof processes for keeping everyone in the loop and why it’s essential you build a network of people you absolutely trust.
	Feature Article: Will I Own the Property If I'm the Successful Highest Bidder? Gregory F. Arcaro If you're thinking about bidding at a foreclosure auction in Connecticut, be forewarned that in this state, simply being the highest bidder does not necessarily mean that you own the property. Read on as local attorney Greg Arcaro explains what can go wrong... and how to fix it...
	Feature Article: 4 Things You Probably Don't Know About Credit Deborah Siegel Credit is the starting point from which lenders of all types and sizes will decide whether or not you are a good risk. But it's not as obvious or as straight-forward a process as you may think. Read on as Debbie Siegel explains what really goes on behind-the-scenes.
	Feature Article: Maximizing Your Success at an Auction: Do's & Don'ts for Before & During Auctions Dale Schaetzke Are you intrigued by the opportunity to buy property at auction but unsure about how to navigate the system? Knowledge is power before and during an auction, so take the time to educate yourself about the process before jumping in...