As a real estate practitioner I sometimes see inaccurate inspection reports and conflicts of interest that arise among service contractors. In an effort to cover their liability inspectors sometimes sabotage deals by misleading buyers or providing vague, yet alarming information in a report. Likewise, some service contractors will recommend work that is not even necessary if it means more business.
As an example I had a case where the inspector apparently suggested a complete roof replacement to the buyer, claiming that the roof was near the end of its useful life. A closer inspection by a reputable roofing contractor revealed that the roof was actually less than 10 years old and simply needed a minor repair and cleaning. The cost differential in this case was about $7,000. The unnamed inspector in this case also apparently told the buyer that the siding on the home might be composite siding (Masonite or Omniwood) which was part of a class-action lawsuit. No composite siding existed in this case since the siding was actually real wood. The cost differential was approximately $15,000! Needless to say, the homeowner was relieved to have a second opinion clarifying the issues.
Contractors sometime have a conflict of interest when it comes to doing both inspections and the actual repair work. It's no surprise that some termite inspectors often find some evidence of termites to justify an expensive treatment. The treatment recommended might even call for drilling holes in the patio, slab, or driveway when the soil around the home can be easily reached without such drastic measures. Visit www.domyownpestcontrol.com or www.doityourselftermitecontrol.com for basic, affordable pest control options.
Another huge rip-off that affected some Houston area residents is the mold scare. Tropical Storm Allison and the more recent Katrina and Rita incidents have some contractors trying to convince unwitting homeowners that expensive testing and mold remediation are necessary to eliminate the toxic disaster in their homes. The realities of mold are far less serious. Healthy people usually have nothing to fear, and the CDC doesn't even recommend testing mold. Most mold issues can be cured with a little common sense. If you find mold in your home there is probably a leak somewhere. Stop the leak and you stop the mold. Mold can be cleaned with a simple solution of bleach and water.
I always encourage buyers to perform a thorough inspection when buying a home. On the same note, I encourage sellers to look at any repair requests with a certain level of scrutiny. I want my clients to have the opportunity to make decisions based on factual information, not scare tactics. In most cases a little research and some common sense will make everyone happy.
For more information about home repair rip-offs read this Reader's Digest article titled "5 Biggest Home Repair Rip-Offs".
