Thinking of selling your existing home or buying a new home? A home inspection can benefit you as a seller or buyer.

Arizona's seller's disclosure law requires a seller to complete a Residential Seller's Property Disclosure Statement. This statement obligates the seller to disclose all known material facts regarding the property to the buyer.  These conditions are in relation to the home's water supply, sewer system, roof, basement, structural components, mechanical systems and/or presence of wood boring insects / termites, hazardous materials, drainage, code violations, underground storage tanks/wells and any other material defects.

Whether you're selling or buying, you should know how to maximize the value of a home inspection and the disclosure laws. Here are some helpful tips on advance planning and preventive maintenance through inspections.

Seller's Benefits

Even though it isn't required for a seller to have a home inspected prior to putting it on the market, it could pay off in the long run both financially and legally.

A pre-listing inspection can reveal potential problems with your home that may come up when the buyer's inspection is conducted. Identifying problems early will give you time to make any necessary repairs. Having repairs made in advance could pay off in a higher sales price and/or a quicker transaction.

Over the past few years, we have seen an increase in disclosure litigation. You want to protect yourself by disclosing all known problems and repairs made to correct these problems. By accurately listing the problems and repairs you know of, you will have provided full notice to your buyer and reduce your risk of litigation.

Buyer's Benefits

A home inspection is an important part of the home buying process and can prove to be one of the most important investments you can make for your future as a home owner.

A home inspection garners preventive maintenance tips and assesses potential problems with the property. It provides useful information on the home's overall structure, as well as estimating the life cycle of its major systems and appliances. Then, if there are potential problems, it presents the opportunity to learn how much money you will need to make the repair or negotiate having it fixed by the seller.

Choosing An Inspector

Whether you're a buyer or seller, your selection of an inspector is critical to the reliability and accuracy of your inspection. Make sure you select one who is qualified. When choosing your inspector, there is some preliminary information you will want to identify up front to ensure that you have made the proper selection. Consider these helpful tips when you begin to research:

• Consult with your friends, relatives and real estate sales associate for names of qualified home inspectors.
• Avoid selecting an inspector who also provides repair services. It could pose a conflict of interest and questions of credibility in the inspection.
• Ask for the inspector's background and credentials. The most credible inspectors are those who have received special training and accreditation. They should belong to national organizations, such as the American Society of Home Inspections (ASHI) or the National Association of Home Inspectors (NAHI). You can call ASHI at 1-800-743-2744 or NAHI 1-800-448-3942 for a list of certified inspectors in your area.
• Find out how long the inspector takes to complete an average inspection. Competent inspectors take at least two to three hours for an average three-bedroom home.
• Ask about your particular inspector's experience. You want an inspector who has performed five or more inspections a week for more than two years.
• Make sure the inspector provides narrative written reports, not just checklists. Some inspectors will even provide an audio report.
• Verify that the inspector has insurance coverage in cases of errors or omissions.
• Make sure you accompany the inspector so you can ask questions and make notes of the answers.
• Identify what the inspection covers by reading the inspection agreement. Some inspectors do not cover all systems such as HVAC.
• Make sure the inspector has the property disclosure form so he/she can validate the property conditions disclosed.
• Ask for the cost and payment arrangements when you first contact the inspection company.
• Make sure the inspector sets up an appointment during the day. You do not want the inspection conducted at night. It's hard to thoroughly inspect the external features of the home in the dark.
• Don't confuse appraisals for FHA and VHA loans or city point inspections for private inspections. These appraisals or city inspections do not have duty to the buyer and usually are not as thorough as private inspections.

Under Arizona's Home Inspector Registration Act, registration requirements for home inspectors are administered by the State Board of Technical Registration (SBTR). The law establishes a process and requirements for registration and registration renewal as a home inspector. In addition, the law requires that registered home inspectors have one of the following financial assurances: a. Errors and Omissions in the amount of $200,000 in the aggregate and $100,000 per occurrence; b. $25,000 bond; or c. Financial assurance mechanism with a value of at least $25,000. The law states that a failure to obtain, or loss of, financial assurance is grounds for revocation of registration. The law allows a practicing home inspector to present evidence of sufficient experience to not have to obtain training or pass an exam. Exempt individuals from course study requirements for registration who can provide evidence to the SBTR that they have performed 100 or more home inspections for compensation.

For more information, contact State Board of Technical Registration, (602) 364-4930. 

To download the governing law and standards go to: http://www.btr.state.az.us/ and click "Home Inspectors," under General Information.

For more information on home inspections or for additional home selling or buying tips call Audrey.