NATIONAL NEWS

We live in a time of environmental awareness. Because of the widespread concern about our environment and pollutants it is no surprise that where inspections are concerned, traditional structural assessments are no longer enough. When you consider that well water contamination from an old nearby gas station would go unnoticed by a standard home inspection and does provide a very real threat, it stands to reason that such environmental concerns require a different type of inspection. This next level of inspections is called a Neighborhood Environmental Report (NER).

NERs are based on fresh data compiled from local inspectors, private laboratories, court records and government sources to research an area for contaminants of concern such as acids, base neutral acids, carcinogens, cement kiln dust, dioxins/dibenzofurans and other unpronounceable toxins, as well as volatile organic compounds and other contaminated media such as air, debris, groundwater, liquid waste, residuals, sediment, sludge, soil, and surface water. All of these factors are researched to generate a report revealing risks that could affect the value of the property and the safety of the client. Though not widespread as of now, the trend is growing rapidly and is one Real Estate professionals should be aware of should they wish to offer it before their clients start asking for it.

Neighborhood environmental reports detect problems in the area around and under a house, and also in the surrounding neighborhood. These reports are offered by home inspection companies across the country and typically cost from $100 to $150. With the growing awareness of “green” issues, this type of inspection is expected to become standard.

Andy Lynam of WIN Home Inspection Henderson, NV. says, "... they are not really used in Nevada because there’s not much need here. I can foresee that they might become more popular in the future.”

According to Nick Gromicko, founder of the National Association of Certified Home Inspectors (NACHI), neighborhood environmental reports have only been available for about two years. He says that these reports are often requested in areas where there are known, existing environmental concerns.

Buyers have found that by utilizing these reports, they are able to buy the kind of peace of mind that comes with knowing that there won’t be any surprises down the road. Because the reports set the buyers at ease, sellers have found the reports useful in helping to sell a home.

For Real Estate professionals, these reports are one more resource at their disposal to help their clients and facilitate a sale. The reports can also be quite useful to Real Estate professionals in preventing any disclosure issues that might otherwise arise relating to the environmental “health” of the property.

Barbara Hannan is senior marketing manager for the residential market at Environmental Data Resources, Inc. (EDR) which is headquartered in Milford, CT, and operates 20 regional offices throughout the United States. Founded in 1990, the company generates more than 750,000 environmental reports each year and added the neighborhood environmental report to its products in May of 2006. Barbara says the company has seen steady growth in interest in these reports, partially due to their own national campaign directed toward educating Real Estate professionals on the usefulness of the reports.

“Consumers who are concerned with the health of their home order the report through their local home inspector,” says Barbara. “Clients run the gamut from those who are buying to those who are selling, as well as existing homeowners interested in learning about the environmental conditions that may exist in their neighborhoods.”

Barbara says, “The report is based on a target search of an address. It includes a section on findings of all associated records found within 300 feet of that address, and a section of any records identified beyond 300 feet but within the neighborhood.”

According to Barbara, Real Estate professionals are able to set themselves apart by being aware of the services that will best serve their clients, and recommending those services when appropriate. As a further benefit, these reports can help ensure a hassle-free closing by advising clients to obtain important environmental information on and around a residential property during a home inspection.

“Consumers have long relied on Real Estate professionals to help guide them through the home buying and selling process, from obtaining listings on new properties to marketing an existing property to brokering the actual transaction,” she says. “Today, with access to the Internet and online Real Estate services, it’s more important than ever that Real Estate professionals clearly demonstrate the value they offer their clients.”

When it comes to home inspections, traditionally a home inspection was enough. Now we know that the risk isn’t confined to just the home itself. Environmental factors in the neighborhood can prove as hazardous as any structural problem. Neighborhood environmental reports provide Real Estate professionals one more resource to ensure that their clients are making fully informed decisions when they purchase a home.