FAQ: Norristown's Costly Home Inspections Don't Add Up

Many Norristown homeowners will find postcards from the SRA in their mailboxes this week. We're rolling out a public information campaign to inform the community about the extensive resale requirements imposed by the municipality. 

Here are a few answers to basic questions about the campaign:

What is this campaign all about?

This campaign — called Norristown's Costly Home Inspections Don't Add Up — is about the burdensome number of inspections Norristown requires of residents who are selling their homes. This campaign is focused on residential properties that will be occupied by homeowners. It is not focused on rental properties in Norristown, which make up about 70% of the housing stock there.

Who’s running this campaign, and why?

We’re the Suburban Realtors Alliance, a government affairs agency serving Realtors in Montgomery County and the rest of suburban Philadelphia.

We care about this issue for two reasons: 

First, we’re tired of seeing Norristown residents surprised by the huge expense and hassle of trying to sell their homes. We want them to be aware of what’s in store for them, so they can prepare for it, especially in their financial calculations.

Second, we think Norristown’s leaders are misguided in their approach and are being unfair to residents. We work in 238 municipalities in the four counties bordering Philadelphia, and Norristown’s mandates are among the worst we’ve ever seen. The municipal council and administration’s goal might be to improve the safety of the local housing stock, but the actual effect is simply making it much harder and more expensive to sell a home in Norristown. 

Our members, including thousands of Realtors working in Montgomery County, have told us repeatedly that they find Norristown’s resale process to be unusually burdensome and difficult.  

Have you met with Norristown officials to discuss this issue?

Yes, we have met with administrative leaders as well as elected officials on a number of occasions to discuss this issue and share the other concerns of our members. Their response, for the most part, has been that they don’t agree with our assessment that the large number of requirements are a burden for sellers and buyers. 

Have you heard from Realtors who have struggled with this process?

Yes, we hear regularly from Realtors who are either on the seller or buyer side of a transaction in Norristown. The phone calls from Realtors became so frequent in early 2021 that we conducted a survey to learn more about the issues they were facing. The results were pretty shocking. Of the respondents: 91% said that the process of obtaining a use and occupancy certificate was difficult; 84% said the use and occupancy process negatively impacted their ability to complete a real estate transaction in the municipality; 81% of respondents said they are less willing to take a listing in Norristown because of the use and occupancy process, and; 58% percent of respondents said that inspectors or code staff did not return either emails or phone calls. 

Can you give an example of the problem?

Sure — suppose Mr. and Mrs. Jones own a townhouse in Norristown, and they decide to sell it. Their house is worth about $150,000 in today’s market, and they still owe $110,000 on their mortgage. That means they have $40,000 worth of equity in the home — the amount they’d be able to pocket from the sale after paying off the mortgage debt. 

A buyer makes an offer that Mr. and Mrs. Jones accept, and they are ready to close the deal. They’re required by law to request a resale certificate from the municipal government of Norristown. Before Norristown will issue the certificate, though, they make Mr. and Mrs. Jones perform a long list of inspections that cost hundreds of dollars and slow down the sale process. And if the inspections find a problem — which is likely in older homes — Mr. and Mrs. Jones could be on the hook for thousands or even tens of thousands of dollars more. Suddenly, they’re losing a good chunk of their equity to a string of inspections and repairs that are difficult to negotiate with the buyer. 

What exactly is the municipality requiring of sellers?

You can see a full list of inspection requirements, including estimated costs, on NorristownMandatesDontAddUp.com.

Put simply, sellers must complete: interior and exterior property inspections; lead paint testing; heater certificates; chimney certificate; and a sewer lateral inspection.

I heard sewer lateral inspections aren’t actually required.

Sewer laterals are the pipes running from the house out to the sewer main under the street. There’s some confusion over whether sewer lateral inspections are required by Norristown, but the municipal council passed an ordinance (Ordinance No. 21-16) requiring lateral inspections, and we’ve been told by municipal officials that they are indeed required. If they’re forgoing these inspections in any cases, it only adds to the lack of clarity regarding the requirements.

Is Norristown’s inspection process really so different from other nearby towns?

Yes! Norristown has a more intensive, expensive and confusing resale inspection process than just about any other town or borough in the Philadelphia suburbs. We work in 238 municipalities, and we’ve done so for more than 20 years. Norristown’s resale requirements are extreme, and their communication and administration of those requirements is often confusing.

What are some great things about living in Norristown?

Norristown has a lot to offer its residents. It’s historic, ideally situated along the Schuylkill River and is well-served by public transportation and the Schuylkill River Trail. The municipality is filled with vibrant culture and close-knit neighborhoods. Many of its attractions like Elmwood Park Zoo and Norristown Farm Park are known throughout the region. There’s no shortage of restaurants, bars and cultural institutions that provide an array of options for ways to relax and recreate. 

As the county seat, Norristown is a hub of Montgomery County activity and home to the county administration and justice center.

Norristown is also an affordable option for home ownership compared to other nearby communities. The median estimated home value in Norristown is $190,000, compared to $404,140 for the rest of Montgomery County. Unfortunately, the long list of inspection items and requirements that property owners face when they sell their home makes Norristown somewhat less desirable as an investment.  

This video from Councilman Hakim Jones goes over some of what makes Norristown a great place to live and spend time. 

 

[ West End of Norristown  image: Montgomery County Planning Commission (CC BY-SA 2.0) ]