Bendix Home Inspection,Inc. 734-377-5616 Rick@bendixinspect.com

Hi,

     I recently had a client call me to ask if I could get their septic tank pumped out. I replied, "Yes, I'll have the tank pumped as part of my inspection." The reply was, "The system was inspected already, and they just needed the tank pumped out."

    WOW! This is a big "Red Flag" It's like diagnosing a cars' engine without opening the hood!

     When it comes to septic systems, there are two basic types of inspections:  

      The County Inspection - Also called the Time of Sale Inspection, is done to fulfill the counties requirements. Every county is different, some have their own reporting criteria, and some don't inspect at all. It's possible to pass a county inspection without having to inspect the tank, and I believe many problems would be missed with this type of inspection.

     The Bendix Inspection - I recieved my septic education with Michigan State University, at the Michigan Onsite Wastewater Training and Education Center (MOWTEC).
     Using a detailed checklist, and with the countys info (if there is any), I will locate and open the septic tank, observe and record the conditions in the tank, inspect the condition of the baffles and tees, take a soil boring of the drain field, and I'll have the tank pumped.

     They said a report they have states the tank was opened, conditions observed were normal, and they took a boring sample of the drainage field and it was normal.

     The two ways a system can fail is at the tank and in the field. The problems associated with the tank are: The baffles are cracked, the cement tank is cracked, or there are tree roots penetrating the tank. Any of these would fail an inspection, but you will never know without having the tank pumped out.

     After explaining this I asked, "Are there any trees within 50' of the system?" And the answer was "Yes."

     I'm glad to say I sold them on a proper inspection!!!

Rick Capps                                         
Bendix Home Inspection, Inc
37315 Bendix
Wayne, Mi. 48184
Cell: 734-377-5616
Fax: 734-578-0440

Hi,

    My daughter and fiancee are looking at a home in foreclosure that needs a new septic field. The home is priced where after investing the $10,000 needed, it should appraise for more than the total investment.

    Many of my home inspections are for first time buyers looking for a starter home. Many of the homes are either out-dated, needing the electric, HVAC, plumbing, or roof redone, or they have been neglected and are deteriorating.

    Many of my clients don't seem to know about Rehab Loans or 203(k) loans. These seem like the perfect way to address the gluttany of foreclosed homes.

    The way I understand this, the client needs to be able to show:

• Credit-Worthiness
• Appraisal Value after Renovations
• Minimum of $5000.00 in repairs

...then it would be the perfect program.

    According to guidelines spelled out by the FHA for it's participating approved lenders, a Rehabilitation Purchase and Renovate loan includes the following steps:

•     A potential home buyer locates a fixer-upper and executes a sales contract. The contract should state that the buyer is seeking a 203(k) loan and that the contract is contingent on loan approval based on additional required repairs by the FHA or the lender.
•     The homebuyer then selects an FHA-approved lender who offers the Rehabilitation loans and arranges for a detailed proposal showing the scope of work to be done, including a detailed cost estimate on each repair or improvement of the project.
• The appraisal is performed to determine the value of the property after renovation 
• If the borrower passes the lender's credit-worthiness test, the loan closes for an amount that will cover the purchase or refinance cost of the property, the remodeling costs and the allowable closing costs. The amount of the loan will also include a contingency reserve of 10% to 20% of the total remodeling costs and is used to cover any extra work not included in the original proposal.
• At closing, the seller of the property is paid off and the remaining funds are put in an escrow account to pay for the repairs and improvements during the rehabilitation period.
• The mortgage payments and remodeling begin after the loan closes. The borrower can decide to have up to six mortgage payments (PITI) put into the cost of rehabilitation if the property is not going to be occupied during construction, but it cannot exceed the length of time it is estimated to complete the rehab.
• Escrowed funds are released to the contractor during construction through a series of draw requests for completed work. To ensure completion of the job, 10% of each draw is held back; this money is paid after the lender determines their will be no liens on the property.

         I know my daughter will have a  long road to travel, but it's the only way they could get there "Dream House". But with a lot of research, patients, and paper work, I'm sure they can do it!

     Please let me know your opinions on these types of loans, or anything that might help!

Respectfully,

Rick Capps

Bendix Home Inspection, Inc
37315 Bendix
Wayne, Mi. 48184
Cell: 734-377-5616
Fax: 734-578-0440
rick@bendixinspect.com
http://www.bendixinspect.com

Hi,

     A good home inspector has to walk a fine line when doing a home inspection. If your too critical, the Realtor has to work harder to sell the home, too general, and the buyer might not realize the severity of a problem.

    Then there's the liability issue. If a Realtor recommends a home inspector who doesn't perform a proper inspection, and a defect is found later, law suits will follow. That's the main reason Realtors and Firms have policies regarding the recommending of inspectors.

    I think there is a balanced way the home inspector and realtor can work together.

    My approach to an inspection is any defect can be fixed! I've been in the residential building trades for 30 years and know how to go about repairing items and their approximate cost. When a defect is found, this knowledge takes the shock out of hearing there may be a problem. Most defects I have found are common and I can say "I've seen this before and this is how you fix it." This simple statement goes a long way to easing the clients fears and gives the realtor something to work with.

    For Realtors, I use a "Hold Harmless" clause in my Contract to allieviate the realtors responsibility. While we all know that contracts are challanged all the time, I also explain this clause to the clients at the begining of the inspection to distance myself from the realtor and gain the clients trust. Now we are all working together.

10. HOLD HARMLESS AGREEMENT: CLIENT agrees to hold any and all real estate agents involved in the purchase of the property to be inspected harmless and keep them exonerated from all loss, damage, liability or expense occasioned or claimed by reasons of acts or neglects of the INSPECTOR or his employees, or visitors, or of independent contractors engaged or paid by INSPECTOR for the purpose of inspecting the subject home.

     Another way realtors can distance themselves from the inspector is to have a list of inspectors they believe to have done a good job. That way it's the client who picks the inspector, and the realtor doesn't have to worry about going an extra mile to close the deal. 

     So Realtors, get to know a Home Inspector. It could be the start of a great relationship!

Rick Capps

Bendix Home Inspection, Inc
37315 Bendix
Wayne, Mi. 48184
Cell: 734-377-5616
Fax: 734-578-0440
rick@bendixinspect.com
http://www.bendixinspect.com

  Hi,

     Different home inspectors have varying qualifications, equipment, experience, reporting methods, and yes, different pricing

     In Michigan, inspectors are not required to be licensed. Anyone who has a business card can start advertising as a home inspector. The Mich. Dept of Labor and Economic Growth (DLEG) recommends inspectors be certified, but it's up to the client to research them. The three top certifying organizations are: National Assn of Certified Home Inspectors (NACHI), American Society of Home Inspectors (ASHI), and the National  Assn. of Home Inspectors (NAHI)

     Each organization has its own membership requirements. You pass an online test and pay the fee and your a Certified Home Inspector. Certifying an inspector just sets the minimum requirements. Just think, somewhere out there is the worst doctor. Yes he's a doctor, but do you want him treating you.

     That's why you should thoroughly question a home inspectors qualifications. Many home inspectors in Michigan will also have many "Certifications" or trade licenses such as: Residential Builders License, Certified Mold Inspector, Certified Termite Inspector, Training in Well And Septic Inspections, Residential Electric, Certified in Radon Testing, and much more. Most organizations require some form of continuing education. I am certified through NACHI and they require 24 hours a year of continuing education.

    Ten Questions To Ask Your Home Inspector

1. What does your inspection cover?

The inspector should ensure that their inspection and inspection report will meet all applicable requirements in your state if applicable and will comply with a well-recognized standard of practice and code of ethics. You should be able to request and see a copy of these items ahead of time and ask any questions you may have. If there are any areas you want to make sure are inspected, be sure to identify them upfront.

2. How long have you been practicing in the home inspection profession and how many inspections have you completed?

The inspector should be able to provide his or her history in the profession and perhaps even a few names as referrals. Newer inspectors can be very qualified, and many work with a partner or have access to more experienced inspectors to assist them in the inspection.

3. Are you specifically experienced in residential inspection?

Related experience in construction or engineering is helpful, but is no substitute for training and experience in the unique discipline of home inspection. If the inspection is for a commercial property, then this should be asked about as well.

4. Do you offer to do repairs or improvements based on the inspection?

Some inspector associations and state regulations allow the inspector to perform repair work on problems uncovered in the inspection. Other associations and regulations strictly forbid this as a conflict of interest.

5. How long will the inspection take?

The average on-site inspection time for a single inspector is two to three hours for a typical single-family house; anything significantly less may not be enough time to perform a thorough inspection. Additional inspectors may be brought in for very large properties and buildings.

6. How much will it cost?

Costs vary dramatically, depending on the region, size and age of the house, scope of services and other factors. A typical range might be $300-$500, but consider the value of the home inspection in terms of the investment being made. Cost does not necessarily reflect quality. HUD Does not regulate home inspection fees.

7. What type of inspection report do you provide and how long will it take to receive the report?

Ask to see samples and determine whether or not you can understand the inspector's reporting style and if the time parameters fulfill your needs. Most inspectors provide their full report within 24 hours of the inspection.

8. Will I be able to attend the inspection?

This is a valuable educational opportunity, and an inspector's refusal to allow this should raise a red flag. Never pass up this opportunity to see your prospective home through the eyes of an expert.

9. Do you maintain membership in a professional home inspector association?

There are many state and national associations for home inspectors. Request to see their membership ID, and perform whatever due diligence you deem appropriate.

10. Do you participate in continuing education programs to keep your expertise up to date?

One can never know it all, and the inspector's commitment to continuing education is a good measure of his or her professionalism and service to the consumer. This is especially important in cases where the home is much older or includes unique elements requiring additional or updated training.

I hope this information is of assistance to you, and be sure to visit my web site at:www.Bendixinspect.com

Thanks,

Rick Capps

President

Bendix Home Inspection, Inc
37315 Bendix
Wayne, Mi. 48184
Cell: 734-377-5616
Fax: 734-578-0440
rick@bendixinspect.com
http://www.bendixinspect.com

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