I wrote this brief article about home inspections because there is not much emphasis put on them here in Los Cabos as there is in the states. In the states, almost every sale is contingent on the results of a home inspection that is preformed soon after getting an accepted offer. I suspect that here, with the advent of financing and other changes in the complexity of the real estate market, home inspections will eventually become part of every real estate transaction.

Houses in Los Cabos are usually constructed with reinforced cement concrete and concrete blocks; generally, there are no wood framed houses. Roofs are also made of reinforced cement concrete and there are no basements or attic space as you find in houses built in some parts of the states. Workmanship is good, but this is not the U.S., this is Mexico where things are done somewhat different but with simialar results.

What is a home inspection and who is "the inspector"?

A home inspection is a detailed inspection of all the components of a house; from top to bottom, side to side, front to back. It is not just someone walking about the property and nodding their head while making some notes. It is performed by someone who is highly trained and knowledgeable in home construction and maintenance. In the states, years ago, many people put on a hat and called themselves a home inspector. That is no longer the case. Home inspection is a highly regulated industry. Every state has certification and licensing regulations and continuing education requirements to ensure the quality and integrity of the inspectors.

There are no licensing regulations in Mexico and anyone electing to have a home inspection done, should carefully check the qualifications and experience of the person who is recommended. As in the states, your realtor will be able to help you by giving you the name or names of home inspectors.

What is the purpose of a home inspection?

The inspection is to provide the client with as much knowledge as possible about the condition of the house, including all appliances and even things that can't be seen. Most often, the buyer arranges for the inspection. Generally, the owner of the house is usually able to tell the buyer what they know about their house. But you'd be surprised what many home owners don't know about their house. As a nationally certified home inspector, I can remember owner's responses when it was revealed that their house had problems like termites, bad roofs, undetected structural or electrical problems, etc. As an inspector, I not only looked for problems, I looked at all the good and interesting things about the house. And even though the "good" things didn't always get in the report, I still talked about them with the buyer, so they could get a good feel about the house.

Sometimes an owner will hire an inspector before they offer their house for sale. The owner will use the report to make repairs, replace appliances that are at the end of their useful life, etc., so that the house is ready to be sold.

Remember, we don't always see the things that are most obvious to us especially if we don't stop and ask ourselves "what am I seeing, what does it mean or why is it significant and what do I have to do about it"?

What does the buyer (or owner) do with the report?

The report describes what the inspector found during the inspection. It will list things that need to be repaired or replaced and in some cases, it will include a cost estimate so the buyer will know what it will cost to do the work. The buyer, knowing the good things and bad things, what needs to be fixed or replaced, how long they can expect the air conditioning compressor to last before it needs to be replaced, etc., can then decide whether or not to proceed with the purchase. The buyer may give a copy of the report to the owner and negotiate repairing or replacing the items that represent a significant monetary investment. If there are a lot of problems, especially structural or insect damage, it's not unusual for a buyer to exercise his contingency to not buy the property.

Recommendations

1. Always make the purchase contingent on having the house inspected by a qualified home inspector; the inspection usually is made within 5 to 10 days of acceptance of the offer. The contingency should also state that you must be satisfied with the results of the inspection but you can't be unreasonable in your expectations, i.e., a few minor problems can't be a reason to void the contract. 2. Check the qualifications of the inspector; their training, experience, and references. 3. Always accompany the inspector to see and understand what he's talking about. Ask questions. A good inspector will take time to explain things to you. For example, how central air conditioning works, how to properly maintain the condenser and air handler and how long you can expect the compressor to last before it needs to be replaced.. 4. Negotiate with the owner on major items that need repair or replacement. Negotiating minor items is wasting your time and their time. A resale house is a used house and you can't expect everything to be perfect and "like new".

Purchasing a house, whether it's your primary residence or a vacation home, is an exciting and happy time in your life. Don't let it be anything else.

Richard Cooper October, 2005

CABO SAN LUCAS COLDWELL BANKER