Deciphering a Real Estate Inspection Report.

SAN DIEGO--(BUSINESS WIRE)--Sept. 21, 1998--One who has ever seen a property inspection report knows that they can be very lengthy, contain numerous comments regarding specific components, and often use technical verbiage.

Buyers and sellers often ask inspectors, "What does all this mean?" Deciperhing inspection reports can be relatively easy. The California Real Estate Inspection Association suggests categorizing the comments into two basic categories.

First, and most important, are health and safety issues. Deficiencies in electrical wiring or in fossil fuel appliances, such as water heaters and furnaces, can pose a fire or carbon monoxide poisoning risk. Other health and safety conditions, such as broken glass or improperly constructed stairways may pose less of an immediate threat, but are still important conditions to be noted.

"One of the challenging aspects of health and safety issues is that of the 'then and now' syndrome," explained Scott Clements, president of the 600-member association. "Residential construction standards have gone through numerous changes since the first building code was published in 1927."

A few of the more obvious added requirements are that of smoke detectors, safety glass and Ground Fault Circuit Interrupters (GFCIs).

"The tough part is knowing what the local municipality requires at the time of property transfer, for instance all homes in California are required to have smoke detectors installed at the time of transfer, but specific requirements of location and type will vary by local municipality," Clements added.

Requirements relating to safety glass and GPCIs, among others, will also vary by area. Inspectors are capable of determining what the current conditions are, but since they are not the final authority on such issues, will seldom dictate specific remedies. The best source of information on local requirements can be obtained from the local department of building and safety.

The second category is that of maintenance-related items. While these items may not pose a health or safety risk, they should not be considered unimportant. Maintenance items left unattended can develop into more costly issues, and in some circumstances, become health and safety issues. The old adage "an ounce of prevention is worth a pound of cure" certainly holds true. From an inspector's perspective, all items are important, and should be properly addressed.

The negotiation between buyer and seller determines who pays for what. Each transaction is unique, so there is no formula that works in all circumstances. It is wise for consumers to educate themselves on the monetary aspects of the issues listed in the report, and then rely on their Realtor for guidance in proceeding with the transaction.

CREIA is non-profit corporation founded in 1976 to provide education, training and support services to the real estate inspection industry and to the public. CREIA's state offices are in San Diego and local chapters are based throughout the state. Within the past two years, CREIA's membership has more than doubled to over 600 members serving California.

For a qualified CREIA inspector near you, call the CREIA referral line at 800/388-8443, or visit the award-winning CREIA Web site at http://www.CREIA.com.