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Define 'Residential Resale Structure'


Marc
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In reviewing the SOP that my state uses, I cannot find a definition for the term 'Residential Resale Structure' It's significant because a 'Residential Resale Structure' is not required to be in compliance with the SOP which may allow me to offer a 'walk-thru' inspection if the dwelling is not under contract by anyone:

Ҥ 307. General Limitations

B. This Chapter applies to residential resale structures.â€

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In reviewing the SOP that my state uses, I cannot find a definition for the term 'Residential Resale Structure' It's significant because a 'Residential Resale Structure' is not required to be in compliance with the SOP which may allow me to offer a 'walk-thru' inspection if the dwelling is not under contract by anyone:

Ҥ 307. General Limitations

B. This Chapter applies to residential resale structures.â€

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Mark, the SOP only applies to a Home Inspection. Clearly define your scope, establish a standard, create a contract and your off and running. As long as you and the client agree that the service you are providing is not a Home Inspection you are not governed by the HI law.

If I were to write an agreement for walk and talks it would begin and end with the phrase "this is not a home inspection".

Tom

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Sorry for the double post my smoke signal internet connection out here in the third world country in the middle of the great USA glitched. I had never thought of doing a walk through or walk and talk as some call it.

Dennis

Inspectors with repeat clients, investor type clients, offer this as a less time-consuming and cheaper for the client, way to look at see several houses. I think Russel Ray charges $99 and gets it done in less than an hour, drives his Mustang to the next shack, bangs that one off in 20 minutes, and so on. No SOP, no risk. This guy has inspectors working for him doing the regular grind while he's out schmoozing the big wheel investors.

You can just go back to one of your posts anytime and hit edit, then delete.

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Marc, you are on the right track in my opinion.

Read YOUR state licensing law and their definitions.

I operate in TX which appears to be one of the most strict and difficult to comprehend standards that are totally unique to TX.

For example what other state mandates that you test the temperature of the oven and report if it is off by more than 25 degree?

Any house that does not have AFCI meeting the latest NEC requirements is deficient? You get the idea.

In TX, I print up the standard form and mark as "Not Inspected" on each and every system and make note that by agreement and choice of the client that the systems were not inspected.

I do this because there is very specific wording written into the state law about what is and is not a home inspection governed by the state.

Pretty much if you get paid to look at a house and report on it then it is a home inspection and a written report is required.

I use the same contract, same inspection report, just notated that I did not inspect those items listed as not inspected.

Others here may not do it my way, but I figure I am covered and it takes about 5 minutes to create the paperwork and my clients understand that I am just complying with state law while still meeting their needs.

I only perform walk and talk for experienced investors that are just looking for the big picture, not home buyers that will be living there.

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Hi,

If there is one thing that I've learned during the 14 years I'll have been doing this gig tomorrow, it's that there are a fair number of so-called inspectors who will actually look for ways to get around SOP's and rules in order to do less work and make more money. Now, I know we all want to make more and work less, but it shouldn't be at the expense of clients or, more importantly, the expense of the profession.

A guy that is churning out walk-n-talks all day without there being specific rules about what one of those is, without a contract, and without a written report to show what he looked at, has the potential to do great harm to the profession, if the client then buys the property and never bothers to get a full inspection and it turns out to be a money pit. Once a buyer has dug that hole for himself, it's my opinion that the buyer is more often than not going to blame everyone except himself; and, when his friends ask, "Well, did you get an inspection?" most loudly he'll blame the inspector.

We specifically required a contract here that specifies what people look at during a walk-and-talk and we specifically called it a pre-offer and put language into the rules that says that it can only be done pre-offer and that a written report is not required.

We did that so that if an inspector agrees to do a walk-n-talk, and the client later buys the house without calling the inspector back to get a full inspection, the client won't be able to take the inspector to court later claiming that the inspector didn't look at something that was actually outside of what they'd agreed to look at.

The rule protects, primarily, the inspector; by ensuring there is no ambiguity about what is or is not going to be inspected during the walk-n-talk. It protects the consumer because it can only be done pre-offer; so at the point where the buyer has plunked down money and is locked in contingent on an inspection, a somewhat slick and less-than-ethical inspector can't slide in, without a contract and without a report, looking at just a few things and then leaving a bunch of stuff not looked at that might end up biting the buyer later.

We haven't discussed it here, but it came up during deliberations about these things; what about the full inspection where the client wants you to exclude something - say, a chimney when you can see from the ground that it's about to topple and the client has a chimney guy coming out separately to provide him a written estimate for repair? Couldn't you exclude a bunch of stuff and then not write a report post offer and still get away with it?

We closed that door; post offer requires a written report and the contract must specifically state what's going to be looked at and the report must state what items were excluded and why they were excluded.

ONE TEAM - ONE FIGHT!!!

Mike

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Hi,

Earlier in this thread someone asked what we charge for this service and someone responded that Russell Ray charges $99 per. I hope that nobody thinks that $99 is a fair price to do something like this; not with the potential liability and reputation-crushing risk they entail.

Yeah, yeah, I just posted that we require contracts, etc., to protect inspectors and consumers doing these. That's true, but anyone can sue you for anything and when that happens your reputation takes a hit.

I guess RR never heard of the fat guy rule; I've subscribed to it for many years - namely, that a fat guy doesn't even climb into his truck for less than $150. You'd be amazed how many folks call up looking for a walk-n-talk who, when faced with paying $150 for a 5-item walk-n-talk without a report are willing to shell out $400 and upward for a 'real' inspection with a written report.

ONE TEAM - ONE FIGHT!!!

Mike

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Hi,

Earlier in this thread someone asked what we charge for this service and someone responded that Russell Ray charges $99 per. I hope that nobody thinks that $99 is a fair price to do something like this; not with the potential liability and reputation-crushing risk they entail.

Yeah, yeah, I just posted that we require contracts, etc., to protect inspectors and consumers doing these. That's true, but anyone can sue you for anything and when that happens your reputation takes a hit.

I guess RR never heard of the fat guy rule; I've subscribed to it for many years - namely, that a fat guy doesn't even climb into his truck for less than $150. You'd be amazed how many folks call up looking for a walk-n-talk who, when faced with paying $150 for a 5-item walk-n-talk without a report are willing to shell out $400 and upward for a 'real' inspection with a written report.

ONE TEAM - ONE FIGHT!!!

Mike

I checked out RR's website. The minimum charge is $299 "so bring 3 addresses". Inflated Fat Guy Rule. [:)]

I can see the value in the service for clients who can't decide. But will they pay again for a full inspection of the house they pick? No, so they'll rely on what they think they heard you say while you walked around 3 houses.

You could record everything that's said, but will your recordings save your butt in court? I think you need to choose your clients carefully for that gig.

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I can see the value in the service for clients who can't decide. But will they pay again for a full inspection of the house they pick? No, so they'll rely on what they think they heard you say while you walked around 3 houses.

Clients have brought me back for the full inspection when they've made an offer and had it accepted. I don't do a lot of these, but I've had situations where I've done two or three of these for a client before he's found one he wants to make an offer on and calls me back once MA is reached.

Clients want to know pre-offer whether it's even worth their time making an offer or whether they should turn tail and run.

When they don't turn tail and have made an offer and had it accepted, it makes sense to get the full monty so they can get a written report, because without a written report they are pretty much screwed when it comes to any kind of renegotiations.

ONE TEAM - ONE FIGHT!!!

Mike

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In a couple of hours I will be doing a "walk and talk" inspection for a homeowner that has a few problems with his home. He does not know what he needs to do, his builder has been no help, etc, etc, etc... So the plan is for me to go and take a look at his home. I told him that it will be my normal hourly rate ($175) and if he wants a report written that will be most likely be an additional hour at the same rate.

Granted this is more of a specialized inspection but it still falls under what I would call a non conforming inspection in regards to SOP's and license laws.

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