Inspector Missed Dry Rot Etc.
I purchased a 10 yr old, custom built, lake home a yr ago. I hired a nationally recoqnized inspection company to check things out. During the pre-purchase inspection , I questioned several areas in this house that seemed suspicious to me. One was under the vinyl in the corner just outside of the shower. I also noticed some shading on the ceiling in upper bedroom, but the inspector said it was nothing. The shower area continued to bother me so a few months later, I pulled up the vinyl (which was nicely caulked by the way) to find a hole in the floor and major work needing to be done. There is obviously a leak in the ceiling as well. The inspector came back and we are in the process of getting estimates. With the price of lumber,etc. so high, they are telling me it may be as much as $10,000 to fix everything.
On the questionaire the inspection co. sent, it asked if I had insurance to cover it. I don't plan on having my ins. company cover this mess. Do I have any recourse with the inspection co?
What is the best way to handle a situation like this?
Thanks for your input.
Hi skhunter it sounds like there trying to take you for a ride, the bathroom floor deal the plywood might be rotted from so much water from people taking a shower and splashing on the floor I see this alot and it's always a 4x4 area or 5x5 section that would have to be replaced plywood under $40.00. Bedroom ceiling spotting 1.it'spossible you might have a small leak on your roof 2.your attic might not be properly insalated and you are getting www.moisture.or 3 if your room is connected to the bathroom it's possible that your exhaust fan is bad or not properly vented.Hope this will help some but if thats the case a repair like this should cost you a full days work $300-$400 if you high a local handy man service.
Buildit4, thank you. I know that the shower floor will have to be replaced as well as the floor under the adjoining walk-in closet. Since the problems had been covered up and the inspector didn't catch them who will be paying for the work?
I believe there's recourse against these inspection companies. Your case seems strengthened by your own initial observations of those potential damage areas, while your inspector specifically ignored you on them.
And this repair is no $350 item.
That subfloor runs under the shower. Ouch! That means removing the shower, removing the surround if there is one, replacing the subflooring, replacing the shower pan, resetting/replacing the shower, resetting/replacing the surround, plus new finish-flooring, meaning pulling and re-setting the toilet.
Get a lawyer. It's time to sue.
I hate to hear about the inspection problems.
You said you hired a nationally recognized company..........in the experience as a contractor and a licensed home inspector.........many of these companies hire inspectors that cant get jobs themselves.
These companies are often the fast food chains of the inspection business.
They are quick.....not thorough.
I have seen them come onto a property that should take about 4 - 6 hours to inspect and be gone in about an hour.
While it is unfortunate that this is going on.......in many cases it is the consumers fault.
While I do not know your situation......I know from experience when potential clients have called my office with their first question being......."how much will it cost"? When it should be...."what is your experience.......what do you inspect....what is not covered etc."
You need to read the contract carefully......typically the contracts read that they are only obligated to pay the original inspection fee.
Some companies have what is called E& O policies.........(error and omission insurance)if this is the case then you need to pursue that avenue.
Depending on any state licensing requirements.......most inspections are visual only.....they are not technically exhaustive or to be intrusive.
If I may ask, what did you pay for this nationally recognized company to do your inspecton and how long were they there?
NC_Yank
I paid the inspector $500. and he was in the home about 2 hours. Though it appeared he was thourough, it is obvious he was not. I may have been remiss but believing the referrals I had recieved for this company, but it seemed they are a qualified group. I had worked with this inspector before and he gave me a discount off of the $500. because of our previous relationship. The company has not told me they won't pay, I am asking here what to do if they refuse. It seems they are insinuating that my insurance will cover it and I am not planning on making a claim to my ins. company for a mistake they made. I am checking over the information they gave me and will get back to you all on what the details are. Thanks for your input.
Unfortunately your state does not require contractors or inspectors to be licensed.....as a result this leave the door open for all sorts of problems with very little recourse depending on the company or person you are dealing with.
However I would contact the company and ask for their Errors and Omission Insurance. If they fail to give that to you then seek legal counsel.
Also find out what their policy is on how there inspections are to be conducted.
Document everything, take pictures and get numerous estimates.
The price seems very fair.....its unfortunate that it was a rush job.
All stains on ceilings should be check with a moisture meter....as well as going into the attic over that area and looking for signs of moisture penetration.
Most penetration happens around vent boots and flashing.
Bathrooms are notorious for moisture problems.....especially around the toilets.
Hope it works out for you....
NC
Thank you all for your input. We are going to seek lack of disclosure as well. The vinyl was new and freshly caulked, and it wasn't disclosed in the paperwork. It is obvious that the leak had been going on for a very long time. The ceiling below had a small patch and now a new spot has developed.
We have had one contractor over and the second one will be out this week. The $10,000 estimate was not just for the bathroom, it included other water problems outside.
I will keep you posted on the outcome.
Based on personal experience, I would RUN, not walk, away from any agent that doesn't have experience dealing with investors. My suggestion, find one that has the experience and tell this one, thanks, but no thanks.
[ Edited by davezora on Date 10/19/2004 ]
HUD home - first off you don't need a realtor to find these for you, use their website, then call the listing agent to seem them. 2nd Hud homes usually suck as investments where I am from, maybe different in your neck of the woods. Nationally Huds are purchased by owner occupied buyers more than 90% of the time. Hud isn't having a problem finding buyers. Homeowners are usually will to pay way too much. So as you discovered in this one the numbers don't work, and the reasons are as stated, this probably won't change by looking at more of them.
House built in 1866! LOL. You couldn't pay me to buy a house that old. The line "They don't build them like they used to" is a compliment towards newer homes, not the other way around.
It took me a long time to find/train a good RE agent. I have found better luck with brokers that deal typically with investors all the time. I agree to RUN if there not familiar, because now you are both going to go through a learning curve at your expense. Also start calling other investors because sometimes they'll have leads for a finders fee and generally you'll come out ahead. When I use my Realtor to buy a house it's usually 1 than I find not him. He's great for sending me comps on other houses I buy though. He sends me e-mails weekly on houses that have been on the market for more than 240 days. I always have to write down what he needs to say or I just go with him when making an offer. He has his place, but I only buy a couple from him a year..
Thanks for the responses.....at least I know my overall feeling on this prop was correct.
, but rather what I can push a potential agent to do without a buyer's agreement. I previously posed the question to her as to what she could and could not do with a signed agreement, and got the following notes:
However, my real question here wasn't necessarily to verify the quality of the deal (not good), or the quality of my agent (also not good
- She cannot show me a property without it.
- She cannot run me a comparative market analysis without it (she just sends me other closed MLS web links)
- I can engage agents in areas that she doesn't cover with it.
- I can break it if I become dissatisfied with her, as long as it's mutually agreed upon.
- She didn't say this, but I assume the buyer's agreement does not allow me to work with other buyer agents in the same area that she covers?
I have a potful of alternative methods to the standard MLS listings to find my potential rehabbers, mostly based on books I've read and ideas from many posters here. Even that considering, the overall theme of success seems to be on a quality agent, regardless of method. I can still see myself leaning on a REA to offer advice as to desirable amenities in a given neighborhood, as well as providing me quick and accurate comps (in the form of CMA I'm told works best).
So without committing to a REA upfront via the buyer's agreement, what is an agent REALLY allowed to do without that agreement? I want to put these guys to the test to see if they're up the challenge they're verbally committing to before I sign anything......
I only do a buyers/agents agreement if I'm going to put an offer on the house. Then the agreement is only for that house. I basically told him that I can go to a broker or another RE agent, heck even the listing agent. He got the point that he needs me more than I need him. I didn't find him on the first go around. It took me 1.5 years. Than another 3 months to train him. He's a good guy though.