Luxury and Big Home Inspections

In 2023, a home inspector was hired to perform a luxury, big home inspection at a nearly 8,000-square-foot property. The home sold for more than $10 million.

A year later, the client sued their inspector for breach of contract, negligence, and violating the Unfair Trade Practices Act. They cited 17 errors and omissions, all either reported, outside the inspector’s scope, or related to an inaccessible space. 

The client didn’t care if the inspector could account for every defect he was accused of missing. Nor did they care that an inspection expert reviewed his report and found it to be very thorough and accurate. They’d had bad blood from working with a different inspection company, and they were taking it out on our insured. 

Although they paid $350 to 400,000 to fix the alleged damages, their demand against the inspector was much steeper: $1 million.

Conflicts like this big home inspection claim, which is still pending, don’t happen often. But they reflect common anxieties about inspecting huge houses. With so much value on the table, how can inspectors make clients happy and protect themselves from potentially bigger claims?

What defines big or ultra-luxury homes? 

Mansions, estates, manors, luxury residences, McMansions—big homes fall under many categories and names. Some are mansions older than our own country, like New England’s 17th century “Pitkin Mansion” valued at more than $2 million.Meanwhile, with upscale amenities and stunning views, many newer builds take ultra-luxury homes to another level—like one multimillion-dollar home in Florida.

Their sizes vary, too. Some say McMansions fall between 3,000 and 6,000 square feet, Lisa Smith wrote in an article called  “Beyond McMansions” for Investopedia. Meanwhile, the main house alone on that multimillion-dollar million Florida property is 11,500 square feet.

What unique challenges do big home inspections pose?

The sheer magnitude of big home inspections can be overwhelming at first. There’s more ground to cover and more things to potentially miss. 

Instead of one electrical panel and one HVAC unit, you could see six of each. There could be three kitchen ovens to test (and shut off before you leave) instead of one. 

You’ll also see more complex, expensive, and upscale components and amenities in ultra-luxury homes that you won’t see in most standard homes. They may require research or a specialist to inspect. Additionally, they’re more costly to replace, meaning potentially more costly claims. 

The inspectors we interviewed reported a number of unique luxury and big home inspection finds, such as:

Custom materials, like specialized marble or exotic hardwood.

• Custom materials, like specialized marble or exotic hardwood.
• Bowling alleys.
• Home theaters.
• Elevators.
• Instantaneous condensing hot water systems.
• Hidden safes and panic rooms.
• Steam showers and saunas.
• Wine cellars.
•  Central vacuuming systems.
• Chandelier motors.
• Smart house systems and control panels.
• Adjacent buildings, like pool houses and guesthouses.
• Docks or oceanfront property.
• Built-in cold plunge tubs.
• Horse stables.

How do I manage my risk while inspecting huge houses?

To help you make the most of your big home inspections, we interviewed inspectors who are passionate about this market. We share their advice and our risk management tips below.

1. Don’t rush.

When inspecting huge houses, give yourself plenty of time. Otherwise, you run the risk of rushing. This not only looks unprofessional but also increases your risk of errors.

“You’ll be mentally tired,” Philip Dancer of Dancer & Company Inspections of the D.C., Maryland, Virginia (DMV) area said. “That’s the reason why you cannot get caught shorthanded at these homes. Because when you get mentally tired, you will start missing things.”

2. With big home inspections, bigger teams spell
      better quality.

To optimize your time, ask for help. 

Consult your team or hire someone. You’ll work faster and more efficiently without compromising thoroughness. Agents will be impressed, too, said Chuck Lambert of Sunrise Inspection Services in California.

“With two people, it makes you look a lot more professional. With three people, again, more professional. But I know inspectors that would do a 14,000-square-foot house by themselves.  And you can’t do that,” Lambert said.

“Sometimes it’s even better to do it as a team-type effort. If you’re a multi-inspector firm, utilizing more than one inspector to do a job like that is a great idea. And if you’re a single operator, team up with a fellow inspector in your area to help you do that and share some of that revenue,” Emmanuel “Manny” Stratakis of Summit Property Inspectors in New York said. “It’s always better to have more eyes on the job than not, especially that size.”

Additionally, if you’ve never inspected a big or luxury property before, find an experienced inspector to teach you the ropes first, Lambert said. You might reduce your profit a little, but it teaches you to do the job right from the get-go, he said.

Lean on your network or other inspectors on your team, Randall Meadows of Focus Inspection Authority in California agreed. Who knows? Those who help you may need your help with big home inspections later.

“Don’t be afraid to say, ‘Hey, I don’t know about this.’ Because the only way you can really get yourself into trouble is to pretend like you know something when you don’t,” Meadows said.

Most importantly, work with inspectors you trust and whose values align with yours. If you’re passionate about providing a high-end service, you don’t want a sloppy end product because you partnered with someone who’s rushing through.

3. Be organized. Plan ahead.

With big home inspections, your time is precious. You can’t show up the day of like you can with a standard home inspection, Dancer said. You need to prepare ahead of time.

“When you walk into a 14,000-square-foot house, you have to have a game plan in line,” Lambert said.

For example, you don’t want to waste time trying to locate major systems, rooms, or components while inspecting an estate, Dancer said. To prevent this, you’ll want to research the layout beforehand, Meadows and Dancer agreed. 

If the estate or mansion has a regular maintenance expert or caretaker, you might ask them about inaccessible spaces or components. You might even research the architect or do a walkthrough and meet the builder beforehand, as both Meadows and Dancer have done. This will familiarize you with any hidden or unique features you need to identify or disclaim.

“That sometimes will help, as well, just knowing who the architect is. Many of these older mansions … have these little, special compartments. If you’re not sure what you’re looking at, it can be a little mind-bender,” Meadows said.

Additionally, take time beforehand to stage where every inspector is going and delegate what they’re inspecting, Dancer said. He and Meadows also suggest using walkie-talkies during big home inspections to verify that everyone’s on target.

4. Set clear expectations for luxury,
      big home inspections.

Home inspectors are general practitioners. While inspecting a luxury property with higher square footage, you’ll encounter a few components that are better left to a specialist. 

“We know a little bit about a lot of things. When we need to break it down, that’s when we will look for the help from the professional in that field, the specialist,” Stratakis said.

But your client doesn’t always anticipate these limitations.

So, in addition to your inspection findings, take care to communicate your scope and exclusions with clients, agents, and subcontractors. Disclose inaccessible spaces and excluded systems, like elevators and security systems. And, if you subcontract something to a specialist, get a formal agreement with a hold harmless clause and an outline of their own scope. 

The better you communicate and set expectations, the less likely you are to experience misunderstandings.

5. Charge appropriately for big home inspections.

Your time and expertise are valuable. Plus, you’re taking on more liability with big homes. So do yourself a favor: Get appropriate compensation.

“You’re going to do a 10,000-square-foot house for one-third the price that you’re going to do a 1,500-square-foot house when you have 10 times the liability,” Lambert said. “And the person who’s buying the 10,000-square-foot house has much better lawyers.”

Furthermore, consider that a clientele who purchases luxury real estate knows the value they’re paying for. 

“Customer service is very high in the luxury world. They want to be treated with white gloves, and that’s what they’re paying for. They’re paying the higher price for their inspection,” Meadows said.

6. Be aware of your surroundings.

Big homes likely contain expensive staging materials or the owner’s real furnishings. So be extra careful not to knock anything over during your big home inspections.

With this in mind, you might ask the agent to clear the garage of any luxury cars prior to the inspection. Lambert applies a similar rule to wine cellars.

“Don’t ever, ever, ever open up a wine cellar where there’s wine in the cellar. Because if for some reason it malfunctions or whatever, you just bought all that wine,” Lambert warned. “I’ve done five houses where the owners absolutely refused to let us in there because they had upwards of $30 to 40 million worth of wine in the cellar.”

Speaking of your surroundings, be careful when posting photos on social media, too, Lambert said. If you’re nervous, it doesn’t hurt to get permission first. Even then, he’s cautious to exclude any details that could trace the house’s location.

Working with celebrities? Meadows and his team will sign a nondisclosure agreement to assure the client of their anonymity. 

7. Confidence is key.

To succeed in the world of big home inspections, confidence is key. You must know what you’re doing and be confident that you’ve prepared. With experience in the field and ancillary service training, that confidence will naturally follow, Peter Hopkins of InspecDoc Inspection Services in California said.

“Confidence is the most important part. Once you have that, there’s no end and limit,” Hopkins said.

If you get overwhelmed while inspecting an estate, remember: It’s just a bigger box. A mansion’s appliances, construction, and building materials will be more expensive, but they’ll have the same defects you’ll see in any other price bracket.

“You have more heaters, more air conditioners, and more roofs, but it’s just a bigger box,” Hopkins said. “Same thing, same components, except the high-end homes often will have some high-end electronics. But as inspectors we disclaim those, anyway.”

“You have to get the price of the property out of your mind because otherwise you’re just going to be worried,” Lambert agreed. “This is just a bigger box. Instead of taking 20 steps to get across the room, it’s going to take me 60 steps.”

“Once you take your eyes off the lipstick and the beautiful furnishings and whatnot and you start looking at the actual things you’re supposed to inspect, you find the plumbing leaks, you find the electrical double taps—all the issues that are standard with other inspections,” Meadows said. “Don’t look at the furnishings, look at the finishings.”

Still nervous? Take big home inspections one room, step, or “bite” at a time, Hopkins suggested.

“How do you eat an elephant?” he said. “One bite at a time.”

Have adequate coverage for any home, big or small.

Think back to our story in the very beginning. The inspection client demanded $1 million. If the inspector went into that big home inspection with only $100,000 in insurance limits, the claim would’ve exceeded his allotted coverage.

Don’t risk having insufficient coverage for your services. Whether you need E&O coverage for allegedly missing a roof leak, general liability coverage for breaking the seller’s imported vase, or endorsements for ancillary services, your insurance shouldn’t hold you back. It should be your peace of mind.

Alyssa Cink is the Marketing Content Editor for InspectorPro Insurance, which offers ASHI members exclusive benefits through its program: InspectorPro with the ASHI Advantage. Through risk management articles in the ASHI Reporter and on the InspectorPro website, InspectorPro helps inspectors protect their livelihood and avoid unnecessary risk. Get peace of mind and better protection with InspectorPro’s pre-claims assistance and straightforward coverage. Learn more at inspectorproinsurance.com/ashi-advantage.

Note: The Managing Risk column with InspectorPro Insurance provides home inspectors with tips to protect their businesses against insurance claims.

Opinions or statements of authors are solely their own and do not necessarily represent the opinions or positions of ASHI, its agents, or editors. Always check with your local governmental agency and independently verify for accuracy, completeness, and reliability.