3 I’s Of Bad Home Inspection Reports: Incorrect, Inaccurate, Incomplete

Buying your dream house may seem easy and fulfilling until the home inspection comes in to ruin everybody’s day.

Home Inspection

When buying a new house, a home inspection can be the most grueling task for both the buyer and the seller, which is both time and budget consuming.

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For compliance purposes, everyone needs to deal with the whole inspection process. This process may take a day or two, depending on the level of expertise of the inspector and the size of the property, among others. Unfortunately, the inconvenience that clients might experience when buying a residential property doesn’t stop there.

The InterNACHI Home Inspection Standards of Practice lists the protocols that every home inspector must follow when it comes to evaluation and inspection of residential properties. However, a lot of inspectors are non-compliant with this mandate, creating what can be called the “three I’s”.

Incorrect, inaccurate, and incomplete. These are the three results of a substandard home inspection report, which will be discussed further:

  1. Incorrect - This is providing wrong information on the report so that the inspection process can be finished faster.
    Issues like this, though can be perceived as something harmless from the start, breach the buyer’s trust, and may end up with the client filing lawsuit against the home inspection company.
  2. Inaccurate – An inspector may correctly pinpoint the major findings, but inconsistencies regarding the details may cause serious – often dangerous problems – to the buyers.
    Forgetting to record exact notes may get the clients into paying bigger insurance premiums because of cheap or unnecessary repairs.
  3. Incomplete - Overlooking even the minuscule details that are crucial in estimating the cost for any renovation and repairs can also lead to serious problems for everyone.
    By neglecting details about the inspection or failing to perfectly disclose everything, inspectors make the clients subject to an unexpected and renovation without the necessary contingency funds.

To sum it up, it is very easy to speed up a tiresome home inspection process but hiring the best professionals for the job to make sure that everything will be finished smoothly is still the best way to go.

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About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver