SEATTLE -- For Sale: Recently remodeled home on a quiet street in Magnolia. Attractive concrete siding leaks water. Extensive dry rot around the windows. Want to spend thousands of dollars on repairs? Then look no further.

Unfortunately for David and Susan Hayes, they got stuck with that house. Of course, they didn't know about those problems when they bought the place in 2002 for $325,000.

"We're paying for that terrible mistake right now," Susan said.

They discovered the dry rot when they decided to replace the windows before putting the house up for sale. As soon as the first window came out, they knew they had a big problem.

"So, basically, you can put your finger up here and pull the wood away. And it's rotted all away and it's soaking wet," David said.

David and Susan thought they had done everything right. Before purchasing the house, they had two inspections, Susan said.

"Two inspectors gave us the very clear representation that it was a perfectly fine house to live in."

One of the inspectors was hired to check for siding defects. He did report that one wall was saturated with moisture. His advice: watch for sealant failure or moisture intrusion.

But, the inspector concluded, "I do not see any obvious signs of moisture decay problems."

Earlier this year, David and Susan sold their house.

"We probably could have gotten at least $100,000 more had the house been in fine condition," David said.

Dave Pioli is a structural engineer and veteran home inspector. He did not inspect the house owned by the Hayes, but he's often called to homes where a problem is discovered.

"Currently, at this point in time, anyone in Washington state can call himself a home inspector and go into business as a home inspector," he said.

Dave said there are people out there offering home inspection services who don't really know what they're doing.

The result: "Things that were missed in a home inspection, which were visible and should have been documented," he said.

Little Recourse

That's what happened to John Shaw and Marlene Koltin. From the street, their house in Ballard looks lovely. But it's riddled with problems.

"Let down, disappointed, mad, frustrated," John said of their situation. "It's not at all what we expected."

Marlene echoed the sentiment. "This house was supposed to be a joy, and now it's just a source of worry and frustration."

John said that at the end of the inspection, the inspector summed it up by saying: "Would I buy this house? In a minute."

The Koltins bought the house and are now facing $200,000 or more in needed repairs. The most serious problem is under the house, in the crawl space.

"The inspector was down there three or four times taking a look and hopefully identifying the problems we need to know about, he didn't catch this," John said while pointing out seven joists that had severe deterioration.

The damage is likely from powder post beetles. The damaged wood is soft and spongy and may not be able to hold the house up over time.

The inspector also failed to report the inferior flashing around the doors and windows -- something that's hard to miss. There's now dry rot around the windows, meaning they'll all need to be replaced.

The inspector also missed dry rot on the porch and improper grading around the garage. The dirt slopes the wrong way, causing the foundation to leak.

Marlene says their garage may need to be torn down and rebuilt. Had they known before the purchase what they know now, the couple says things would have gone differently.

"We never would have bought the house" Marlene said. "There's no question we never would have bought the house."

Seattle Attorney Dave Von Beck represents both couples, and says it isn't easy to sue a home inspector who makes a costly mistake.

"They're supposed to be the expert out there that's going to find those things," he said. "Unfortunately, most of the home inspectors have clauses in their contracts that limit their liability to only the cost of the inspection.

"Essentially, even if they miss tens of thousands of dollars in defects that they should have caught, you may only be able to collect the cost of their report."

What to Do

So how do avoid becoming one of these horror stories?

Even the best home inspector can't see through walls and won't cut through walls. You're paying for a visual inspection.

Still, some inspectors do a much better job than others. They have more experience. They have more training. So interview a few, check references and find out about customer complaints.

You want home inspector who is also a "licensed structural pest inspector." That means they will check for wood destroying organisms, such as ants, termites, wood beetles and wood rot.

In Washington State, a licensed structural pest inspector must pass a written test, and prove financial coverage with a $25,000 errors and omissions bond, a $25,000 surety bond or some other accepted financial arrangement.

Keep in mind, they do not check for mold and they are not required to tell you if they find it. 

Most basic inspections do no include the use of a moisture meter. With water intrusion the biggest single home problem in the Northwest, you'd be smart to choose an inspector who uses one.

You'd be smart to be there when the inspection is done, so you can ask questions and have things explained to you.

Finally, check the inspector's contract. Do they limit their liability to what you pay the job? If so, you can't go after them in court, even if they were negligent and missed obvious problems.

Find out if they will remove that liability clause. If not, you might want to consider another firm.

Some contractors belong to organizations that have a set of standards and a code of ethics. The American Society of Home Inspectors and the National Association of Home Inspectors are two such groups. Someone who joins an organization like this indicates that they want to do it right. 

To become an associate ASHI member an inspector must pass two written tests (that are proctored). Full membership is not possible until the inspector has completed 250 paid inspections.

ASHI checks 5 of those inspections at random, to make sure the prospective member is following standards. Embers are required to take 20 hours a year of continuing education. Clearly, an ASHI member is serious about doing quality work.

---

For More Information:

Washington State Department of Agriculture Structural Pest Inspector Requirements

WSDA Licensed Structural Pest Inspectors

Search for a licensed structural pest inspector

Frequently Asked Questions on Home Inspections

Virtual Home Inspection

National Association of Home Inspectors

A Brief Guide to Mold, Moisture, and Your Home