Your Home Inspection

Whether you are an investor, a first-time home buyer, or anyone other than a professional contractor, be sure to get a home inspection when you purchase a house!

A home inspection is invaluable to buyers, especially because it can pinpoint problems that are potential deal breakers. Help your buyers avoid purchasing a white elephant—and incurring expenses that come with it—by giving them a heads up about these particular issues.

Termites
Once termites make themselves at home, getting rid of them is tricky. The sooner they are detected, the less damage done. Termites can come back, so advise your clients to hire a professional pest control expert to keep termites away for good.

Drainage problems.
Poor drainage can lead to rotting wood, wet basements and major mold growth, which can spell long-term moisture issues. Let clients know they can help prevent water damage by replacing the gutters or correcting the grading. However, that may not be enough to solve bigger drainage problems.

Cracked or crumbling foundation.
While older homes have lots of charm, their foundations can become weak or damaged over time. Make sure your clients know the expense of repairing a foundation can range from moderate to incredibly expensive.

Worn roofing.
There’s a huge difference in price between a roof repair and a roof replacement. If asbestos is a factor, the expense is generally greater due to costly disposal and containment processes.

Toxic materials.
Toxic finishes, like lead, paint and Chinese drywall, can lead to expensive repairs. Chinese drywall is a relatively new material that was used mostly between 2004-2005. It gives off sulfur gases, which can lead to illness as well as damage to home systems. The fix is to have it completely removed and replaced at a cost of about $40/sq. ft.

Happy Investing!

Today's guest blog is courtesy of American Home Shield.

American Home Shield is providing the information for general guidance only.

- See more at: http://www.ahs.com/realestate/home-care-advice/pages/feature.jsp?featureId=m2030056&utm_campaign=newsletter_b2b_nov2013_ahs&utm_medium=email&utm_source=ahsemail&utm_content=inspection_readmore&full=true#sthash.jgy5ZqNq.dpuf

Investors: Do your Due Diligence!

“Due diligence” in real estate refers to the process of learning enough about a property to determine that the superficial value of purchase price or rental rate matches the reality of the condition of that real estate. Whether you are renting an apartment, purchasing a primary residence, buying a single family house to flip, or purchasing a commercial property, you will have to do some level of due diligence to arrive at a purchase price. The due diligence process is a spectrum of activity and review that depends on the nature of the real estate transaction being contemplated. An apartment dweller may simply tour the property, test out a few appliances to be sure they work, review the lease documents, and then agree to the transaction once these inspections have been done. An apartment rental is less of an investment and typically less permanent, than purchasing a primary residence or a commercial investment property, for example. Hence, the due diligence is much simpler. If the rental is for longer than one year, the lease agreement must be notarized and an inspection is often recommended. When someone is buying a primary residence, due diligence is likely to include much more than a quick walk-through with their broker. The homebuyers will probably want to see some research on comparables, that is, what other similar homes have recently sold for in this neighborhood. They will probably want information on the neighborhood, demographic trends, schools in the area and crime statistics. They may want to know how far the property is located from employment, schools or night life; whether it is on public transit lines or has a high walk score; and whether there are parks, libraries or other amenities nearby. Unless they are a real estate professional familiar with construction, inspection or appraisal, they will probably hire a home inspector to check for any defects in construction or workmanship. The inspection should include a pest inspection, as rodents, birds or wood-boring beetles may cause havoc with houses in this area. I usually recommend that homebuyers include a side sewer inspection during the inspection phase, especially In Seattle, with its older stock of housing and mature foliage. Tree roots can cause major damage to old clay sewer pipes. In many parts of the country, a radon inspection is also recommended, although it is much less of an issue in the Pacific Northwest. If there is a body of water located nearby, it would be good to check in with a hydrologist, or at least find out where the flood plain is located and whether there will be any problem getting flood insurance. Insurance agents can be helpful in dealing with many otherwise un-insurable issues such as steep slopes and critical areas that may affect a homebuyer’s ability to purchase insurance (or build on the property). Septic systems and water wells are more of an issue in rural areas, and should be inspected as well.

Seller disclosures can provide much information about what has been done to and what is known about the house. If there has been recent remodeling, were all necessary permits obtained? Federal law requires disclosures regarding lead paint and other hazardous materials such as asbestos used in houses built prior to 1978.

Checking the chain of title on a property may reveal liens, covenants, restrictions or easements that may affect the buyer’s use of the property. A check of the zoning may reveal opportunities to further develop the property in the future, or perhaps even a subdivided tax lot that the seller did not know about.

Due diligence on a commercial property may be even more complex, with various environmental reviews, surveys, and a review of sellers’ “books and records” to include leases, rent rolls, and maintenance records.

When working with contractors or partners, due diligence may include a review of business licenses, professional reviews, testimonials and personal references. If you are lending money, you may want to do the same due diligence on the collateral used to secure your loan, and on the borrower personally.

Always check references. Always. Ask me how I know….

HomeSellers: Pass Your Home Inspection!

My website www.HomeLandSeattle.com offers many free special reports and resources for both homebuyers and homesellers. Over the course of the next many blogs, I will be sharing many of these reports. This one identifies the 11 most common inspection concerns, of interest to both homebuyers and homesellers:

Homebuyers Want to Know Your Home Inside And Out

While homebuyers are as individual as the homes they plan on purchasing, one thing they share is a desire to ensure that the home they will call their own is as good beneath the surface as it appears to be.

Will the roof end up leaking? Is the wiring safe? What about the plumbing?

These, and others, are the questions that the buyers looking at your home will seek professional help to answer.

According to industry experts, there are at least 33 physical problems that will come under scrutiny during a home inspection. We’ve identified the 11 most common of these and, if not identified and dealt with, any of these 11 items could cost you dearly in terms of repair.

In most cases, you can make a reasonable pre-inspection yourself if you know what you’re looking for. And knowing what you’re looking for can help you prevent little problems from growing into costly and unmanageable ones.

11 Things You Need to Know to Pass Your Home Inspection

❶ Defective Plumbing.
Defective plumbing can manifest itself in two different ways: leaking, and clogging. A visual inspection can detect leaking, and an inspector will gauge water pressure by turning on all faucets in the highest bathroom and then flushing the toilet. If you hear the sound of running water, it indicates that the pipes are undersized. If the water appears dirty when first turned on at the faucet, this is a good indication that the pipes are rusting, which can result in severe water quality problems.

❷ Damp or Wet Basement.
An inspector will check your walls for a powdery white mineral deposit a few inches off the floor, and will look to see if you feel secure enough to store things right on your basement floor. A mildew odor is almost impossible to eliminate, and an inspector will certainly be conscious of it.

It could cost you $200-$1,000 to seal a crack in or around your basement foundation depending on severity and location. Adding a sump pump and pit could run you around $750 - $1,000, and complete waterproofing (of an average 3 bedroom home) could amount to $5,000-$15,000. You will have to weigh these figures into the calculation of what price you want to net on your home.

Your home should have a minimum of 100 amps service, and this should be clearly marked. Wire should be copper or aluminum. Home inspectors will look at octopus plugs as indicative of inadequate circuits and a potential fire hazard.

❹ Poor Heating & Cooling Systems.
Insufficient insulation, and an inadequate or a poorly functioning heating system, are the most common causes of poor heating. While an adequately clean furnace, without rust on the heat exchanger, usually has life left in it, an inspector will be asking and checking to see if your furnace is over its typical life span of 15-25 yrs. For a forced air gas system, a heat exchanger will come under particular scrutiny since one that is cracked can emit deadly carbon monoxide into the home. These heat exchangers must be replaced if damaged - they cannot be repaired.

❺ Roofing Problems.
Water leakage through the roof can occur for a variety of reasons such as physical deteriora- tion of the asphalt shingles (e.g. curling or splitting), or mechanical damage from a wind storm. When gutters leak and downspouts allow water to run down and through the exte- rior walls, this external problem becomes a major internal one.

❻ Damp Attic Spaces.
Aside from basement dampness, problems with ventilation, insulation and vapor barriers can cause water, moisture, mold and mildew to form in the attic. This can lead to prema- ture wear of the roof, structure and building materials. The cost to fix this damage could easily run over $2,500.

❼ Rotting Wood.
This can occur in many places (door or win- dow frames, trim, siding, decks and fences). The building inspector will sometimes probe the wood to see if this is present - especially when wood has been freshly painted.

❽ Masonry Work.
Rebricking can be costly, but, left unattended, these repairs can cause problems with water and moisture penetration into the home which in turn could lead to a chimney being clogged by fallen bricks or even a chimney which falls onto the roof. It can be costly to rebuild a chimney or to have it repointed.

❾ Unsafe or Overfused Electrical Circuit.
A fire hazard is created when more amperage is drawn on the circuit than was intended. 15 amp circuits are the most common in a typi- cal home, with larger service for large appli- ances such as stoves and dryers. It can cost several hundred dollars to replace your fuse panel with a circuit panel.

❿ Adequate Security Features.
More than a purchased security system, an inspector will look for the basic safety features that will protect your home such as proper locks on windows and patio doors, dead bolts on the doors, smoke and even carbon monoxide detectors in every bedroom and on every level. Even though pricing will vary, these components will add to your costs. Before purchasing or installing, you should check with your local experts.

& Structural/Foundation Problems.
An inspector will certainly investigate the underlying footing and foundation of your home as structural integrity is fundamental to your home.

When you put your home on the market, you don’t want any unpleasant surprises that could cost you the sale of your home.
By having an understanding of these 11 problem areas as you walk through your home, you’ll be arming yourself against future disappointment.

For more information on selling your home fast and for top dollar, visit my www.HomeLandSeattle.com website.

Inspect Before you List your Home!

11 Critical Home Inspection Traps to be
Aware of Weeks Before Listing Your
Home for Sale

Seattle - According to industry experts, there are
over 33 physical problems that will come under
scrutiny during a home inspection when your home
is for sale. A new report has been prepared which
identifies the eleven most common of these
problems, and what you should know about them
before you list your home for sale.

Whether you own an old home or a brand new
one, there are a number of things that can fall short
of requirements during a home inspection. If not
identified and dealt with, any of these 11 items could
cost you dearly in terms of repair. That's why it's
critical that you read this report before you list your
home. If you wait until the building inspector flags
these issues for you, you will almost certainly
experience costly delays in the close of your home
sale or, worse, turn prospective buyers away
altogether.

In most cases, you can make a reasonable
pre-inspection yourself if you know what you're
looking for, and knowing what you're looking for
can help you prevent little problems from growing
into costly and unmanageable ones.

To help homesellers deal with this issue before
their homes are listed, a free report entitled "11
Things You Need to Know to Pass Your Home
Inspection" has been compiled which explains the
issues involved.

To order a FREE Special Report, visit
HomeLandSeller.com or to hear a brief recorded
message about how to order your FREE copy of this
report, call toll-free 1-888-621-4999 and enter 1.
You can call any time, 24 hours a day, 7 days a
week. Get your free special report NOW to learn
how to ensure a home inspection doesn't cost you the
sale of your home.


This report is courtesy of Home Land Inspection Properties, Inc.. Not intended to solicit buyers or sellers currently under contract