Buyers, sellers avoid problems by using qualified property inspectors

What starts as a typical home purchase can quickly turn into a nightmare. While John and his wife were chatting with their agent in the kitchen, the inspector called down from an upstairs bathroom.

"You might want to come take a look at this," he said. At the back wall of a bath cabinet was a 3-foot-by-3-foot area covered a black stain. Follow-up testing by a licensed specialist later confirmed that black substance to be mold. John and his wife thanked their inspector and continued looking for a home. The mold problem ended up costing the homeowners more than $10,000 to fix.

The cause of the stain was determined to be a pinhole leak created when workers were installing the cabinetry while the house was under construction.

Like many homes in Las Vegas, this one had plastic plumbing.

"All it takes is just one carelessly driven nail or screw. You may never know until it's too late," said Vince Libonati, president of the Southern Nevada Association of Professional Property Inspectors. "A good inspection could save you literally thousands of dollars."

SNAPPI began in 1998, following a new state law enacted to help regulate the fast-growing industry. SNAPPI's primary mission is to provide training, educational resources and confirm compliance of its members.

Meetings are held once a month at a central location where members listen to presentations on everything from general home construction topics and inspection techniques, to real estate industry events and issues, state regulatory matters and association business. Members also receive a one-hour state-accredited course on a home inspection topic.

SNAPPI also acts as a liaison between home inspectors and the State of Nevada, Real Estate Division, the state's governing body for the industry. Association leaders attend public hearings and meetings on administrative and legislative issues or changes that affect the state's nearly 400 property inspectors.

Demand for inspectors began to soar in the early 1990s as the Las Vegas housing market began to take off.

In 1997, the state enacted NRS 645D, establishing new licensing guidelines for inspectors doing business in the state.

Currently, state law requires all Inspector of Structures inspectors to complete 40 hours of course work, as well as 25 ride-a-long inspections and then pass an exam demonstrating a basic understanding of home construction and the state standards of practice.

Candidates are put through a background investigation and must complete an application process that can take more than two months to complete.

The 1997 law also established NAC 645D, which set forth standards of professional conduct and a created a list of items that must be inspected or evaluated during a property inspection.

In 1998 there were about 65 certified inspectors statewide. Today there are about 300 property inspectors doing business in the Las Vegas Valley.

Current SNAPPI Vice President Frank Benzinger, is responsible for scheduling speakers for monthly association meetings and for ensuring that all training subject matter meets with the state's approval. IOS inspectors are required to recertify every two years.

Inspectors must take 20 hours of continuing education credits during this time and SNAPPI helps its members to accumulate these credits.

"We bring in speakers with extensive local construction and property inspection experience -- veterans of the industry -- who go beyond teaching just the state standards of practice. Members learn about the importance of personal conduct and professional etiquette in addition to good home inspection techniques and protocol," Benzinger said.

"We try to create a mentoring atmosphere where inspectors can come and learn from other inspectors by sharing their experiences."

He said training has become more important with the slow-down in resale homes over the past couple of years. As the real estate business slows, inspectors are starting to take on part-time jobs to fill the income gap.

"Inspectors need to stay in close touch with their industry," Benzinger said. "Changes to the existing standards are underway and our active members are made aware of these changes."

Some estimates show that as few as 25 percent of all buyers of resale property in Las Vegas actually hire an inspector.

"It's amazing to think that not every home buyer will order an inspection," said Debbie Trudell, a Realtor with North American Realty of Nevada.

One reason for this may be that an inspection is not a state requirement under NRS disclosure rules.

Current regulations require a seller's disclosure form provide an evaluation of the owner's property and all its major components, and state whether the seller is aware of any defects.

This is where things can get tricky. In many cases, problems exist without the seller's knowledge.

Other problems can develop after a buyer takes possession. A good property inspection will reveal existing problems and potential problems; issues that could turn into major problems if not addressed.

Buyers can save themselves a lot of time, aggravation and money by getting a second set of eyes, but buyers who decide against an inspection take on an inordinate amount of risk.

"When you think about it, the cost of the inspection is mostly insignificant when compared to the value it provides and the consequences of not having it done," Trudell said.

As the mortgage shake-out continues, foreclosed and short-sale properties are being added to existing inventories at an increasing rate.

Many people believe that an inspection is useless with these types of transactions because the properties are typically sold "as-is."

This is when an inspection is most crucial, according to Benzinger. The inspection gives a buyer of an "as-is" property an idea of what they're getting into.

As almost every inspector will attest, foreclosed properties often come with some serious issues, and costly problems may be awaiting an unsuspecting buyer, he said.

He advised sellers and listing agents also consider a presale, or pre-listing inspection.

By having an inspection prior to listing the property, a seller can assess readiness and get on top of any problems before they're discovered by a potential buyer.

In doing so, the seller mitigates his risk and decreases the chances of an offer falling through at the last minute.

Libonati said buyers should remember that a property inspection is not a code inspection.

Building codes change from year to year and it would be impossible for any one inspector to keep up with all of them.

However, a good inspector should be able to point out safety issues and deferred maintenance items. Also, he suggested buyers look for an inspector who is qualified and experienced.

"Don't be afraid to call first and ask for a couple of references," he said. "Ask the inspector to walk you through a typical inspection. You'll get a good sense of his knowledge and experience in a simple five-minute conversation.

Finally, the buyer should make sure his or her inspector is state certified.

For a list of state certified home inspectors, contact the Real Estate division at 486-4033 or visit SNAPPI.org.