What Is an Independent Property Inspector?

To be a successful independent property inspector, you need attention to detail and excellent communication skills. Other qualifications include professional indemnity insurance, which protects you from financial damage if you make a mistake on an inspection.

 

Qualifications

A property inspector is a professional who assesses the condition of buildings and their components. He or she identifies issues and defects and documents his or her findings. This information helps homeowners, real estate agents, and buyers make informed decisions. A property inspection also provides a valuable resource for insurance companies and landlords.

During a pre-purchase inspection, a property inspector examines a building’s structural elements, electrical systems, plumbing, and heating and cooling systems. He or she also checks for signs of a leaky roof, mold and mildew, pests, and other problems.

The property inspector will then prepare a detailed report that lists all the identified issues and defects. The report will include a description of each problem, photographs, and recommended solutions. The buyer can then use this report to negotiate with the seller or ask for repairs. The buyer can also cancel the purchase agreement if the seller fails to make necessary repairs. For homebuyers, a pre-purchase inspection is an essential step in the real estate process.

Reputation

Independent inspectors are typically well-known within the industry and have a good reputation among their clients/agents. This usually results in referrals, repeat business and a higher level of credibility when they prepare reports. You can check an inspector’s reputation by searching online or in printed phone directories under building inspection services, home inspection or house inspection. You should also ask for references and samples of an inspection report. A thorough and well-written inspection report demonstrates the inspector’s expertise and communicates clearly with clients/agents.

Licensed inspectors are required to follow TREC’s Standards of Practice (SOPs). You can find a simple online version of the SOPs here.

Fees

Home inspectors need to earn a living, so they must charge a fair price for their services. Real estate agents, property managers, landlords, and homeowners all use this service to understand a property’s condition.

Ask your inspector for a list of references. Call them to find out if they were happy with the inspector’s work. Also, ask if they found major defects that were missed during the inspection. Good inspectors will have errors-and-omissions insurance, which covers them if they make a mistake that costs you money.

At the end of the evaluation, your inspector should provide a written report that details their findings. This is important because it allows buyers to decide whether to complete the purchase or not. It should include photographs, a summary, and a table of contents. It should also have a section that lists the defects and gives a recommendation on how to resolve them. If the inspector does not include this information in the report, consider finding another inspector.

Insurance

Generally, property inspectors carry Errors and Omissions (E&O) insurance to cover costs for any mistakes made during an inspection. Even the best inspectors sometimes miss a defect, so having E&O coverage is crucial to protect their livelihoods.

Many inspectors also need commercial general liability (GL) insurance to pay for third-party property damage or bodily injury resulting from an inspection. The average cost of a small business GL policy is $600 per year. Some inspectors might also need commercial auto insurance to cover expenses related to their transportation between properties.

Other possible insurance needs include workers compensation for employee injuries and employment practices liability, which covers claims related to harassment, discrimination, or wrongful termination. A bundled insurance package that includes both E&O and GL is often cheaper than purchasing each type of insurance separately. The cost of a policy is dependent on the size of the business and its location. OREP offers home and property inspectors a customized, comprehensive E&O/GL insurance package starting at $3,500 per year.