The Defect

When a Home Inspector is contracted to perform a home inspection the Home Inspector is looking for defects.  The client wants an impartial set of trained eyes to look at the house and see if there are any problems with the building that might inform the purchase. 

The Home Inspector uses experience and expertise to find defects that may not be recognized by the untrained eye.  The Home Inspector isn’t hired to state, 'This is a good house for you at a fair price and you should buy.' or, 'Do not buy this one, there are problems.' The Home Inspector is only providing a list of defects that help the buyer make an informed decision or negotiate a fair price. 

Included in the list of defects are cosmetic issues like dings in sheetrock or peeling paint and perhaps more substantial structural defects like foundation cracks or signs of moisture penetration. The process of looking for defects involves the inspector looking at everything and making sure all defects are brought to light, especially those that may affect the value of the house.

The Home Inspector examines the home for items that are unsafe, do not operate properly, or are not in good condition.  The report will list these items and note the defect(s).  This list of defects helps the buyer make an informed decision.

So what is a defect?  A defect can be defined as:

1.An issue of Safety.  The inspector examines the house looking for conditions that are unsafe such as; a broken handrail, outlets that are not GFCI protected; the presence of mold; etc.  *There are codes that deal with safety issues but to a Home Inspector ‘Safety’ is not a matter of code. Municipal codes that deal with safety are a matter of compliance.  There is often a condition existing that is compliant to the local code yet still may be considered unsafe.   A Home Inspector may look for the presence of carbon monoxide while the furnace is operating, yet most codes aren’t concerned with the operation of the equipment.  Safety issues are often a judgment call on the part of the Home Inspector. An elevated patio may be only several inches off the ground and well within codes to not require a guardrail. However, the ground in the vicinity of the edge may drop off to a steep ravine and the missing guardrail reasonably should be considered a serious safety concern.

2.An issue of Operation:  Operation isn’t only about equipment running properly; it is about all the systems and components of the house functioning as designed.  An air conditioning system that does not cool the house is not functioning as designed and is an issue of operation. Similarly, a roof that appears in perfectly good condition may leak; in that case it isn’t functioning as designed.  It may lead to the deterioration of the insulation or may lead to the growth of mold and it is a defect because the roof covering is not operating properly.

3.An issue of Condition:  The condition of a component or piece of equipment deals with the state of that item at time of the inspection.  Is it rusty? Deteriorated? Worn?  Rotted? In any condition that is not consistent with its age? 

 

If a purchase contract is signed for a home to which a significant defect has been disclosed, the buyer can’t use that defect as a reason to get out of the contract.  The current homeowner might disclose to the seller during a visit to the property that the air conditioning system is old and does not function. He is basically stating that the buyer is getting the house “as is” in regard to the air conditioner.

The purpose of the Home Inspection is to find any significant defects unknown to the prospective buyer.   Significant is determined in many states as a defect that would cost in excess of $1,500.00 to remedy.  If a significant defect is found then the buyer is within rights to break or renegotiate the contract on the basis of the new findings.  Situations arise when the buyer is looking for a way to get out of a contract and legally cannot without paying a penalty.  The Home Inspection may provide that ‘out’ through detection of a previously undisclosed, significant defect.

The defect is judged by the cost of repair, and although establishing that cost is not the role of the Home Inspector the inspector does need to have an understanding of the reasonable expectation for the cost of repair.  A leaky hose bib is a defect but could not, within reason, be considered significant -even though there are many contractors who would be happy to receive in excess of $1,500.00 to repair it.  On the other hand, an old roof that leaks will most likely require in excess of $1,500.00 to remedy and by any reasonable standard should be considered a significant defect (despite the brother-in-law’s offer to fix it for pizza and beer).  

A Home Inspector is often asked what the cost of the remedy should be, but any estimate or advice is offered as a courtesy and is certainly not the final word.

A qualified contractor will be called in to determine the proper remedy.  The contractor will generate an estimate and this estimate will be used by the buyer to negotiate with the home owner.