11 Things You Need to Know to Pass Your Home Inspection

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

1. 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.

2. 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.

3. Inadequate Wiring & Electrical

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.

4. 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.

5. Roofing Problems

Water leakage through the roof can occur for a variety of reasons such as physical deterioration 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 exterior walls, this external problem becomes a major internal one.

6. Damp Attic Spaces

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

7. Rotting Wood

This can occur in many places (door or window 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.

8. Masonry Work

Re-bricking 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 repainted.

9. Unsafe or Over-fused 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 typical home, with larger service for large appliances such as stoves and dryers. It can cost several hundred dollars to replace your fuse panel with a circuit panel.

10. 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.

11. 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.

 

9 Buyer Traps and How to Avoid Them

---

" A systemized approach to the homebuying process can help you steer clear of these common traps, allowing you to not only cut costs, but also secure the home that’s best for you."

---

No matter which way you look at it buying a home is a major investment. But for many homebuyers, it can be an even more expensive process than it needs to be because many fall prey to at least a few of the many common and costly mistakes which trap them into either:

• paying too much for the home they want, or
• losing their dream home to another buyer or,
• (worse) buying the wrong home for their needs.

A systemized approach to the homebuying process can help you steer clear of these common traps, allowing you to not only cut costs, but also secure the home that’s best for you.

9 Buyer Traps

This important report discusses the 9 most common and costly of these homebuyer traps, how to identify them, and what you can do to avoid them:

1. Bidding Blind

What price should you offer when you bid on a home? Is the seller’s asking price too high, or does it represent a great deal. If you fail to research the market in order to understand what comparable homes are selling for, making your offer would be like bidding blind. Without this knowledge of market value, you could easily bid too much, or fail to make a competitive offer at all on an excellent value.

2. Buying the Wrong Home

What are you looking for in a home? A simple enough question, but the answer can be quite complex. More than one buyer has been swept up in the emotion and excitement of the buying process only to find themselves the owner of a home that is either too big or too small. Maybe they’re stuck with a longer than desired commute to work, or a dozen more fix-ups than they really want to deal with now that the excitement has died down. Take the time upfront to clearly define your wants and needs. Put it in writing and then use it as a yard stick with which to measure every home you look at.

3. Unclear Title

Make sure very early on in the negotiation that you will own your new home free and clear by having a title search completed. The last thing you want to discover when you’re in the back stretch of a transaction is that there are encumbrances on the property such as tax liens, undisclosed owners, easements, leases or the like.

4. Inaccurate Survey

As part of your offer to purchase, make sure you request an updated property survey which clearly marks your boundaries. If the survey is not current, you may find that there are structural changes that are not shown (e.g. additions to the house, a new swimming pool, a neighbor’s new fence which is extending a boundary line, etc.). Be very clear on these issues.

5. Undisclosed Fix-ups

Don’t expect every seller to own up to every physical detail that will need to be attended to. Both you and the seller are out to maximize your investment. Ensure that you conduct a thorough inspection of the home early in the process. Consider hiring an independent inspector to objectively view the home inside and out, and make the final contract contingent upon this inspector’s report. This inspector should be able to give you a report of any item that needs to be fixed with associated, approximate cost.

6. Not Getting Mortgage Pre-approval

Pre-approval is fast, easy and free. When you have a pre-approved mortgage, you can shop for your home with a greater sense of freedom and security, knowing that the money will be there when you find the home of your dreams.

7. Contract Misses

If a seller fails to comply to the letter of the contract by neglecting to attend to some repair issues, or changing the spirit of the agreement in some way, this could delay the final closing and settlement. Agree ahead of time on a dollar amount for an escrow fund to cover items that the seller fails to follow through on. Prepare a list of agreed issues, walk through them, and check them off one by one.

8. Hidden Costs

Make sure you identify and uncover all costs - large and small -far enough ahead of time. When a transaction closes, you will sometimes find fees for this or that sneaking through after the "sub"-total - fees such as loan disbursement charges, underwriting fees etc. Understand these in advance by having your lender project total charges for you in writing.

9. Rushing the Closing

Take your time during this critical part of the process, and insist on seeing all paperwork the day before you sign. Make sure this documentation perfectly reflects your understanding of the transaction, and that nothing has been added or subtracted. Is the interest rate right? Is everything covered? If you rush this process on the day of closing, you may run into a last minute snag that you can’t fix without compromising the terms of the deal, the financing, or even the sale itself.

 

This Month In Real Estate- July 2010

Wondering what the differences between fixed and variable mortgage rates are? Check this out...

Don't Pay Another Cent in Rent To Your Landlord

---

"If you're like most renters, you feel trapped within the walls of a house or apartment that doesn't feel like yours."

---

It's a dream we all have - to own our own home and stop paying rent. But if you're like most renters, you feel trapped within the walls of a house or apartment that doesn't feel like yours. How could it when you're not even permitted to bang in a nail or two without a hassle. You feel like you're stuck in the renter's rut with no way of rising up out of it and owning your own home.

Don't Feel Trapped Anymore

It doesn't matter how long you've been renting, or how insurmountable your financial situation may seem. The truth is, there are some little known facts that can help you get over the hump, and transfer your status from renter to homeowner. With this information, you will begin to see how you really can:

• save for a down payment
• stop lining your landlord's pockets, and
• stop wasting thousands of dollars on rent.

6 Little Known Facts That Can Help You Buy Your First Home

The problem that most renters face isn't your ability to meet a monthly payment. Goodness knows that you must meet this monthly obligation every 30 days already. The problem is accumulating enough capital to make a down payment on something more permanent.

But saving for this lump sum doesn't have to be as difficult as you might think. Consider the following 6 important points:

1. You can buy a home with much less down than you think

There are some local or federal government programs (such as 1st time buyer programs) to help people get into the housing market. You can qualify as a first time buyer even if your spouse has owned a home before as long as your name was not registered. Ensure your real estate agent is informed and knowledgeable in this important area and can offer programs to help you with your options.

2. You may be able to get your lender to help you with your down payment and closing costs

Even if you do not have enough cash for a downpayment, if you are debt-free, and own an asset free and clear (such as a car for example), your lending institution may be able to lend you the downpayment for your home by securing it against this asset.

3. You may be able to find a seller to help you buy and finance your home

Some sellers may be willing to hold a second mortgage for you as a 'seller take-back'. In this case, the seller becomes your lending institution. Instead of paying this seller a lump-sum full amount for his or her home, you would pay monthly mortgage installments.

4. You may be able to create a cash down payment without actually going into debt

By borrowing money for certain investments to a specified level, you may be able to generate a significant tax refund for yourself that you can use as a downpayment. While the money borrowed for these investments is technically a loan, the monthly amount paid can be small, and the money invested in both home and investment will be yours in the end.

5. You can buy a home even if you have problems with your credit rating

If you can come up with more than the minimum down-payment, or can secure the loan with other equity, many lending institutions will consider you for a mortgage. Alternatively, a seller take-back mortgage could also help you in this situation.

6. You can, and should, get pre-approved for a home loan before you go looking for a home

Pre-approval is easy, and can give you complete peace-of-mind when shopping for your home. Mortgage experts can obtain written pre-approval for you at no cost and no obligation, and it can all be done quite easily over-the-phone. More than just a verbal approval from your lending institution, a written preapproval is as good as money in the bank. It entails a completed credit application, and a certificate which guarantees you a mortgage to the specified level when you find the home you're looking for. Consider dealing only with a professional who specializes in mortgages. Enlisting their services can make the difference between obtaining a mortgage, and being stuck in the renter's rut forever. Typically there is no cost or obligation to enquire.

There are many important issues you should be aware of that affect you as a renter. Why on earth would you continue to lose thousands by throwing it away on rent when with your agent you could take a few minutes to discuss your specific needs so that you can stop renting and start owning.

This conversation costs you nothing. And, of course, you shouldn't have to feel obligated to buy a home at the time you review this. But by taking the time to explore your options, and learn about the ways you can afford to buy a home, think how prepared and relaxed you'll be when you are ready to make this important step.

Keep Your Home Safe When You're Away

With summer here, vacations are a must! Ensure your home is safe with these tips I picked up, even if you're just hitting the town for a night out.

Going to the Market or out to Dinner? 

A residence which presents a "lived-in" appearance is a deterrent to burglars. Never leave notes that can inform a burglar that your house is unoccupied. Make certain all windows and doors are secured before departing. An empty garage advertises your absence, so close the doors.
When going out at night, leave one or more interior lights on and perhaps have a radio playing (TV sets should not be left unattended). Timers may be purchased that will turn lights on and off during your absence.
Do not leave door keys under flower pots or doormats, inside an unlocked mailbox, over the doorway, or in other obvious places.

When Planning Vacations or Prolonged Absence 

Discontinue milk, newspaper, and other deliveries by phone or in person ahead of time. Do not leave notes.  Arrange for lawn care and have someone remove advertising circulars and other debris regularly. On the other hand, several toys scattered about will create an impression of occupancy.
Notify the post office to forward your mail or have a trustworthy person pick it up daily. Apartment house tenants should also heed this hint since stuffed mail receptacles are a give away when no one is home.
Inform neighbours of your absence so they can be extra alert for suspicious persons. Leave a key with them so your place may be periodically inspected. Ask them to vary the positions of your shades and blinds.
When you leave, do not publicize your plans. Some burglars specialize in reading newspaper accounts of other people's vacation activities.
If you find a door or window has been forced or broken while you were away, DO NOT ENTER. The criminal may still be inside. Use a neighbour's phone immediately to summon police.
Do not touch anything or clean up if a crime has occurred. Preserve the scene until police inspect for evidence.

Always Remember to: 

1. Lock before you leave. 
2. Trust a neighbour with a key. 
3. Be a concerned neighbour - yourself.

Summer Health Dangers- Beachbums Beware!

Although the weather has really made it feel like summer started well over a month ago, it's now officially summer and temperatures will continue to rise along with humidity levels. 

Please take proper precautions this summer to ensure you and the ones you love get to enjoy the summer months.

Please pass on this information to everyone you know so everyone knows the signs of heat exhaustion/ heat stroke and knows how to deal with it.

When the temperature soars and humidity rises, it's time to take precautions to avoid health consequences such as heat exhaustion, heat stroke and overexposure to the sun. With heat exhaustion and stroke, the most susceptible are seniors, children, and people with chronic illnesses. However, everyone is at risk. The early symptoms of heat exhaustion can sneak up on us. Some people feel a bit light headed and weak and might have a touch of nausea. The serious problems develop when symptoms are ignored and additional fluids are not taken right away. The primary cause of heat exhaustion is dehydration and a loss of electrolytes such as sodium. Generally, try to stay well hydrated and take in extra salt (for those of you who can use salt). Drink even though you don't feel like it - you can't count on your thirst mechanism to prompt you. 

Here are the major symptoms of heat exhaustion and heat stroke and some safety tips to help you cope with health emergencies during the dog days of summer.

Symptoms of heat exhaustion include:

• Body temperature usually normal or only slightly elevated.
• Dry mouth.
• Fatigue, weakness.
• Dizziness.
• Headache.
• Nausea, sometimes vomiting.
• Weak and rapid pulse.
• Sweating.
• Cool, clammy, pale skin.

NOTE: Symptoms take time to develop - sometimes several hours after dehydration occurs.

Treatments for heat exhaustion:

• Get out of the sun and into a cool place.
• Drink more fluids (electrolyte sports drinks may help), but don't drink too fast or you could become nauseous.
• Eat salty snacks.
• Rest.
• Loosen clothing.

Be aware that heat stroke can come after heat exhaustion, but it can also develop quickly and independently if one's core body temperature rises too high.

Symptoms of heat stroke include:

• Very high body temperature (103 degrees or higher).
• Hot, dry, red skin.
• No sweating.
• Disorientation, hallucinations, delirium.
• Rapid breathing and fast pulse, then slow breathing and weak pulse.
• Convulsions.
• Loss of consciousness.

NOTE: Symptoms can come on quickly. Heat stroke can occur within 10 - 15 minutes of the first symptoms. If treatment is not given immediately, permanent damage can occur to internal organs.
HEAT STROKE IS A MEDICAL EMERGENCY. CALL 9-1-1 OR TRANSPORT VICTIM TO A HOSPITAL IMMEDIATELY.

Immediate care for a heat stroke victim includes:

• Move person to cool place indoors or in the shade outdoors.
• Lower body temperature as soon as possible.
• Remove clothing and wrap person in a wet sheet, or wet their cotton clothing.
• Fan person with electric fan or manually (do not place wet items too close to electric fan).
• Place ice packs or cold compresses on the neck, under armpits, and in the groin area.
• If child is unconscious, carefully place them in cool water up to their neck.
• If child is conscious, try to get them to drink cool water, slowly.
• Person may not be able to drink if delirious (do not force them).

 

Is Your Home Healthy and Safe For Children?

I figured I would write about some child safety precautions ever since a friend of mines son got himself into a little trouble- he's fine now though. So please ensure your children are safe, especially in their own home.

Use these four checklists to ensure that your home is healthy and safe for the children living in it:

In the Bedroom

• Install smoke alarms outside bedrooms and on every level of the home.
• Test smoke alarms at least once a month and change batteries at least once a year.
• Practice fire escape routes and identify an outside meeting place.
• Place a baby to sleep on his or her back in a crib with no pillows or soft bedding underneath.
• Use a crib that meets national safety standards and has a snug-fitting mattress.
• Never use an electric blanket in the bed or crib of a small child or infant.
• Keep small toys, balloons, and small balls away from young children.
• Check age labels for appropriate toys. Make sure toy storage chests have safety lid supports.
• To prevent strangulation, use safety tassels for mini blinds and avoid strings on children's toys and pacifiers.
• Install carbon monoxide (CO) alarms outside bedrooms to prevent CO poisoning.

In the Bathroom

• To prevent poisonings, lock away all medicines and vitamins, even those with child-resistant packaging.
• Never leave a young child alone in the bathroom, especially in a bath.
• Before bathing a child, always test bath water with your wrist or elbow to make sure it's not too hot.
• To prevent scalds, set the water heater thermostat to 120º F and install anti-scald devices.
• Make sure bathtubs and showers have non-slip surfaces and grab bars.
• Keep electrical appliances, like hair dryers and curling irons, out of the reach of children and away from water.

In the Kitchen

• Keep knives, plastic bags, lighters, and matches locked away from children.
• Avoid fires and burns by never leaving cooking food unattended, turning pot handles to the back of the stove, and keeping hot liquids and foods away from the edges of tables and counters.
• Make sure you and your children know the STOP, DROP, and ROLL procedure in case their clothes catch on fire.
• Keep appliance cords unplugged and tied up. Replace any frayed cords and wires.
• Securely strap young children in high chairs, swings, and other juvenile products.
• Do not give young children hard, round foods that can get stuck in their throats — like hard candies, nuts, grapes, popcorn, carrots, and raisins.
• Avoid scald burns by keeping children away from the hot water taps on drinking water coolers.

In all Living Areas

• To prevent asthma attacks, eliminate sources of mold, dust, and insects, such as cockroaches. If you have a pet, keep it and its bedding clean and keep the pet off the furniture.
• If you must smoke, avoid smoking in the house, and especially around children.
• Make sure furnaces, fireplaces, wood-burning stoves, space heaters, and gas appliances are vented properly and inspected annually.
• Use safety gates to block stairways (and other danger areas), safety plugs to cover electrical outlets, and safety latches for drawers and cabinets.
• Keep children — and the furniture they can climb on — away from windows.
• Install window guards (on windows that are not fire emergency exits).
• To prevent falls, keep hallways and stairways well-lit and use non-slip backing for area rugs.
• Keep cleaning solutions, pesticides, and other potentially dangerous substances in their original, labelled containers, and out of the reach of children.
• If you have guns or rifles in your home, store the firearms and ammunition in separate containers and lock them out of the reach of children.
• Learn First Aid and Cardiopulmonary Resuscitation (CPR).
• Keep an updated list of emergency telephone numbers, including your local poison control center, physician and hospital emergency room, next to every phone in your home.
• Make sure your family knows what to do during a natural disaster. In an earthquake, drop to the floor and get under something sturdy for cover; during a tornado, take shelter in a basement or an interior room without windows; and during a hurricane stay away from windows. Have handy supplies of food, flashlights, and water.