Have a client who needs to reinspect the basement as part of the refinancing process. The appraisal notes mentioned dampness in the basement, and the mortgage company is requesting an inspection report to assess the structural integrity. As of this comment and after reviewing the pictures taken by the appraiser, I believe they meant to hire a licensed engineer or builder. Am I correct?
That sounds correct. Any qualified structural engineer, builder or others that will stand behind their report on structural integrity would work, I believe.
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I can remember being contacted by a bank to inspect the condition of a basement prior to financing due to a previous inspectors report…long story short I went I looked it was like every other basement in that area close to the lake I sent a letter stating the basement exhibited all of the characteristics of a basement in that area of that age with no structural issues noted…the loan went through
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now if You are in arizona , that is a different story…
Thank you. I mentioned to my client that I am just a home inspector and will conduct only a visual examination. For anything related to the building code, I will still recommend seeking an inspection from an engineer.
From time to time, these kind of requests come up. You are correct to question if you are who they really need. I would (and have) told the client to directly ask the appraiser if a home inspector’s assessment is sufficient.
As an example, a few years ago, I got a similar request. The client insisted that he just needed a home inspector even after I firmly told him that he needed a structural engineer. Ok, fine. I did an assessment for him. Two days later he called just to tell me that he had wasted his money on me…I said, “I told you so.”
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I see. I think I am a little bit concerned of what clients expect from…
Mortgage brokers or loan underwriters frequently make these “requests” after some appraisal anomaly.
They don’t know what they really need, they just need someone to write a letter that states “xyz has no structural issues” or similar wording.
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Thank you, I appreciate you. This is exactly what I’m going to tell my client: I want to be clear and honest, and I don’t want to charge for a home inspection when an engineering inspection will still be required.
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Is this for a VA loan??
I don’t know. Does it make a difference?
VA appraisers are required to conduct an inspection during the appraisal. More often than not, they don’t really know what they are looking at and will note things as needing review or repair, when in fact there is no real need.
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Hi Natalya – I run into this quite a bit. The banks almost always require the person doing this job to be a licensed engineer. If you have the client ask, the lender should be able to provide their requirements for the type of professional that they would accept.
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I perform these type of inspections for a bank on a fairly routine basis. In my case, they are all generated from an appraiser who spent 10 to 15 minutes in the home and sold some moisture in the basement… Sometimes it’s a pest report reporting termite damage needing inspected for structural issues. It’s important that the appraiser says that it can be inspected and evaluated by a licensed Home Inspector and not just say inspected by a Structural engineer. We do structural inspections with every home inspection. The bank basically wants to know if there is a structural issue relating to the moisture in the basement. They also would like to know the source of the moisture… Overflowing gutters, grading at the exterior, possible damaged underground, drain pipes… Etc… feel free to reach out if you need any other guidance on writing a bank letter. The inspection report is not needed. They only need a bank letter. I don’t even include photographs. I tell them that photographs are available upon request. I take the photos. I just don’t send the report.
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Curious to how you determine this.
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To determine the source of the moisture issue, look for anything and everything that might contribute to the issue. Moisture comes from the exterior to the interior. Improperly graded soil can allow surface water to drain and collect toward a foundation wall. Window wells that do not have window wall covers will allow water to collect near the foundation wall. Overflowing gutters will spill over and allow water to collect at the foundation wall. If there is an underground drain pipe and you notice excessive moisture or a moisture issue in that area in the basement, there could be a damaged underground drain pipe. Clay pipes underground, typically, move and become damaged. I usually recommend to have them scoped by a plumber. If there’s an underground spring, pushing water up underneath the house, that can be tricky and a little harder to determine… Sometimes a Thermal Imaging camera can help. If there is a damaged drain pipe under the house, I typically run hot water through the system, and use my Thermal Imaging camera to detect the thermal anomaly. Improperly, sealed windows and doors can also be a source of moisture in a basement. When you inspect the basement, you look for evidence of what could contribute to the issue and report on it if it’s not something blatantly obvious such as a downspout terminating directly at the foundation wall, not going into an underground drain pipe and not diverted away from the home.
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Don’t forget to check your plumbing drain pipes and main sewer pipe… I had one instance when I was sent out to inspect basement moisture to find the source, only to discover that the main sewer pipe in the basement was cracked and leaking. There was no moisture coming from the exterior.
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Thank you a lot for your kind offer to help. I will let you know how it will go.