Hank Investigates: Inspecting the Inspectors

Hank
"Did the home inspector tell you that?"

Peter Vitale, victim
"No he did not."

Suburban Victorian: bathroom floor rotted straight through.

Hank
"And had the home inspector told you that?"

Barbara, victim
"No."

South Shore starter home: with a basement full of hazards.

Hank
"Did the home inspector tell you that?"

Leanne, victim
"No!"

How could their home inspectors make such major mistakes?

Our investigation found the people potential homebuyers rely on to ensure their plumbing works, the wiring is safe, and that the structure is sound--may have a hidden agenda! Or simply may not know what they're doing!

What makes it even riskier is that inspectors have virtually no regulation or oversight. Even home inspectors admit it.

Dan Destefano, home inspector
"If you're lucky you'll get the person that's doing a good job. If you're not lucky unfortunately it could cost you a lot."

Peter Vitale has already shelled out more than 18,000 dollars to fix problems his inspector missed.

Hank
"So there's mold?"

Peter
"Yes."

"And carpenter ants?"

"Yes."

"In your attic? Did the home inspector find that?"

"No, no, he didn't."

His home inspector also failed to find a rotting roof.

Peter
"He told me there was nothing wrong with the roof."

And dangerous electrical wiring!

Peter
"He was negligent, he was irresponsible and he was dishonest."

And looking at the inspector's brochure, we find that he is licensed and insured. There's just one problem with that.

Hank
"This inspector says he's licensed, can that be true?"

Bill Wood
"He's lying."

Bill Wood is head of the Massachusetts Division of Registration--it licenses and sets standards for 32 professions--home inspection is not one on them.

Bill
"This is terribly misleading to consumers."

Hank
"Looking at this brochure now what do you think?"

Peter
"I think it's a pack of lies."

To be a home inspector you don't need any training, education or special skills.

Hank
"So who could be out there?"

Bill
"Anybody could be a home inspector. All they need to do is print up a nice brochure and call themselves a home inspector."

Bill
"Anybody--you or I could do it."

In fact, we did it! We started our own company: "Lucky 7 Home Inspection. It's right on the web and it's perfectly legal.

Bill
"It concerns me greatly."

What's also concerning is how some inspectors get their jobs. Often it's through the real estate agent--and they have a financial interest in seeing the sale go through.

Home Inspector
"It's a major conflict."

This home inspector--who asked to stay anonymous-- explains a home inspection that uncovers too many problems can kill a sale. He says some real estate agents may only choose inspectors who get their message…

Home Inspector
"Don't inspect too thoroughly."

Hank
"Or else?"

"…Or else I might lose this deal."

That's what Leanne thinks may have happened to her. She wonders if the inspector she paid intentionally ignored problems to keep getting referrals.

Hank
"So you thought the home inspector should be working for you. What did it turn out?

Leane, victim
"He was working for the realtor."

In Leanne's case, her new home could have been a deathtrap. Her inspector didn't warn her of a water heater that spewed carbon monoxide into her son's bedroom.

Leanne
"They have to take responsibility for it."

But often homebuyers must sign contracts limiting the home inspectors' liability.

Barbara
"I signed a contract that was pretty much all in his favor. It left me holding the bag."

Dan Destafano
"I don't think you can totally comfort anyone who has been burned by a home inspector."

Some inspectors do voluntarily join one of the national trade associations, but we found the requirements for membership vary widely: from taking a rigorous exam to simply writing a check.

So with home inspectors unpoliced, a great number of potential homebuyers are left unprotected.

Hank
"So what happened to you could happen again?"

Peter Vitale
"Yes."

"Easily…?"

"Yes--today!"

Right now there's a bill on Beacon Hill that would create a tight system of regulation for home inspectors--including licensing and insurance, and restrictions on referrals. However, unless that passes, homebuyers have little recourse--except to take problem inspectors to court.