Home inspection industry shows strong growth
Business First of Louisville - by Carol Burns Whyte
Are you thinking about buying a home? If so, you may want to consider enlisting the services of a home-inspection service. Just open the Yellow Pages, and you'll see a cornucopia of home inspectors from which to choose. In Louisville, more than 35 private home-inspection agencies are available.
Many people are not familiar with the home-inspection business simply because it is relatively new.
AmeriSpec, for example, is part of a 225-franchise chain in the United States and Canada, which opened in Louisville in 1991. According to Sharon Vornholt, president of the Louisville franchise, home inspection has grown rapidly in recent years.
A major reason for the growth is Kentucky's seller disclosure law, which passed in March 1996. Vornholt said that the law has had a "great effect" on the home-inspection business.
"It puts the burden of disclosure on the seller," said Vornholt. In other words, the seller must disclose any known defects to the prospective buyer. Previously it was a "buyer beware" situation.
Today, many real estate contracts require a home inspection by a certified inspector.
Faith Greenwell, president of Greenwell Home Inspections, agrees that the inspection business is busier than a few years ago. "We're an information society, and the home buyer is more educated," she said.
Greenwell also said that to protect themselves many real estate agents guide their clients toward home inspections.
Buying a home is one of the more important investments a consumer may make, so hiring a home inspector can be of great value. Even if a home is brand new, an inspector still will check all components of all systems, including electrical and plumbing.
Consumers should be educated about a home-inspection agency and the services it provides. First and foremost, consumers should realize that a home inspection is not a guarantee against future problems.
"All we can do is look at that moment in time," said Greenwell.
When is it appropriate to hire a home inspector? According to "Tips On Home Inspections," a free information packet available through the Better Business Bureau, most home buyers hire an inspector when they are confident they've found the house they want to buy.
If having the inspection completed before an offer to buy a home is not possible, the BBB recommends that a clause be placed in the contract stating the sale is contingent upon a home-inspection report.
Greenwell, who is also president of the Kentucky Real Estate Inspection Agency (KREIA), said a consumer should ask a prospective home inspector several questions before hiring that agency.
For example, a consumer should ask for the inspector's credentials, including resume.
John Greenwell, vice president of Greenwell Home Inspections, requires company trainees to accompany him to at least 40 inspections. Greenwell inspectors also are certified by the American Society of Home Inspectors, the Building Official Code Administrators and KREIA. Those organizations require annual training.
Most inspectors come from a construction background.
Greenwell also advises that prospective home buyers should ask an agency whether it is a member of a professional organization, such as the American Society of Home Inspectors, or the National Association of Home Inspectors Inc., both of which set minimum standards for home inspections. Neither agency, however, has governing powers.
Choosing an agency that is insured for general liability, errors and omissions and workers' compensation is also wise, advised the Greenwells.
Cost is a major factor for most consumers. The industry average is $185, according to Ralph Wirth, president of Housing Consultants Inc., Louisville. Faith Greenwell said their company average is $200.
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