Before most potential home buyers make their final choice or homes, they take careful and deliberate precautions such as researching the surrounding community, attending a host of open houses, negotiating a favorable mortgage, undertaking a title search, arranging escrow and several other complicated and time-consuming tasks. But those very same home buyers will often overlook and underestimate the crucial importance of another step in the process: selecting a qualified, professional home inspector.

That’s because these homebuyers fall prey to a common misconception –that all home inspection companies are regulated, and thus essentially the same. But the truth is –unlike some other states – Colorado requires no licensing or certification regulations.

That means anybody with a flashlight – but no formal training whatsoever can call himself a “home inspector.” So, if you don’t want to risk compromising the value or the livability of the home you’re buying, arranging for a complete inspection by a qualified professional matters a great deal.

Conversely, as a seller, leaving the inspection to the discretion of the buyer could mean such headaches as haggling and lost contracts days before closing. Buyers have sued sellers and their Realtors for problems that were not disclosed before the sale. Unfortunately a seller who claims not to have had knowledge of a particular issue may spend many times the cost of an inspection trying to prove in court that he or she was not negligent in the disclosure process.

A comprehensive home inspection allows the seller to defer to a professional opinion, address items in a timely manner, disclose those items they choose not to repair, convey the intent to fully inform the prospective buyer, and price their property competitively.

As buyer or seller, how do you make an informed decision with respect to selecting the right inspector? By getting answers to these seven key questions.

Is the inspector well insured?

A minimum $300,000 Errors and Omissions Insurance naming the Real Estate Agent/Broker as additional insured, with a minimum of $1,000,000 General Liability Insurance protects both the buyer and seller if the Inspector is negligent or someone is injured during the inspection. Inspectors should also carry a minimum $5,000 Fidelity Bond to protect homeowner from theft or damage.

Is the inspector well-trained and certified?

A qualified inspector should be highly trained in a nationally recognized, comprehensive program and be required to have passed a formal examination. Inspectors should be able to provide proof with Certificates of Completion, Professional Memberships in industry standards organizations such as ISHI, NACHI, NAHI, ASHI etc. and supply their inspection standards of practice and ethics to any client. Most national organizations require continuing education and adherence to strict inspection standards.

Will the inspector supply a comprehensive report?

The days of the hand-written “checklist” inspection report are long gone. A qualified inspection report should contain narrative descriptions of the home’s anatomy, top to bottom, with accompanying photographs of major problems or concerns. Checklist-only types of reports do not fully inform the client and should not be acceptable.

The inspector should be able to supply a sample report upon request. The report should be available in either hard or soft (e-mail, fax, etc.) form within 24 hours of the inspection. The final report should be bound and in a format that would accommodate long term reference. What’s more, it should contain nationally-recognized inspection standards.

Is the inspection backed by a warranty?

Look for an inspection company that backs their work in writing, providing warranties that cover unreported items at no additional cost. These warranties should not be limited to appliances and should cover structural components and roofs as well. Warranties that exclude structural components or are extra cost should not be considered. A copy of the warranty Terms and Conditions should be available upon request.

What is inspector providing, and at what price?

Many times the selection of an Inspector is decided on price alone, with the inexperienced consumer believing all inspections are the same. A qualified inspection company should provide a comprehensive inspection that renders conclusive findings and does not require secondary inspections of furnaces, roofs, etc. at an additional charge. The inspection charges should be clear and agreed to before the inspector sets foot on the property, if not when the initial inspection appointment is made.

Home inspection costs range from about $150 for a condo style residence to several hundred dollars for larger homes. Make sure you ask your inspector how the price you were quoted was determined (usually by the square footage of the home).

What are the details of the inspection agreement?

The inspection agreement is a legal contract that should clearly define the terms of the inspection, limitations and exclusions, and any limitations of liability. A clear, concise inspection agreement spelling out exactly what you, as the customer, can expect from the inspector will help avoid costly litigation down the road.

Does the inspector offer additional services?

Some inspection companies offer extra services such as environmental testing for mold, pests and radon. An inspector should never offer to refer or perform repairs on items reported during an inspection. Such an offer would be a violation of the Code of Ethics of most inspection trade organizations, and may compromise the objectivity of the inspector’s report.

Whether you’re a buyer or seller, remember that choosing the wrong inspector or choosing to forego an inspection altogether can cost you dearly. So, when “inspecting the inspector” be sure to do your homework!

Gene Dowell is the owner of A-Pro Home Inspections, serving the Littleton and surrounding areas. For a free “Home Inspection 101” booklet, contact Gene at (303) 932-3878 or via e-mail at gene.dowell@aproweb.com