North Texas Real Estate Talk

As a buyer, you have probably heard over and over again how important a home inspection is in the home-buying process. Home inspectors need to be certified and come with many good recommendations. The security and health of your family depend on their attention to detail and ability to see things that are not visible to most other people.

When you are preparing to purchase a home, the information provided in a home-inspection report is critical for protecting your family. Here are the top ten findings of home inspectors, and what can be done to resolve the issues:

Inadequate Drainage
In most cases, you may realize that a home has inadequate drainage long before you purchase it. You will probably smell dampness or see visible water damage along the walls of basement or crawlspace. If a home inspector indicates that a home’s drainage is inadequate, you will probably need to repair or replace downspouts and gutters. You may also need to install French drains or, in extreme circumstances, you might have to level the entire lot to facilitate proper drainage.

Out-of-Code Electrical System
This is a very common finding in home-inspection reports. The problem with bad wiring is that it presents a risk of fire and other problems, including ruined appliances and electronics. In general, an electrical system will need to be brought up to code before an occupancy permit can be issued for a home.

Leaking and Damaged Roof
A home inspector will check a home’s roof carefully to inspect the materials for aging and possible damage. In general, roofing materials can be replaced in small sections. Unless there is significant damage, a complete new roof will not be required.

Dysfunctional Heating System
A dysfunctional heating system can be a significant danger for the home’s inhabitants. Most of the time, this sort of finding warrants replacing the heating system. The good news for home owners is that furnace installations are relatively inexpensive. In addition, modern furnaces are much more efficient than those made in the past. A new heating system will most likely pay for itself in a few years, thanks to its lower utility costs.

Overall Poor Condition
An indication of overall poor condition means that the previous owners did not keep up on home maintenance. Some of the indicators of poor condition might include haphazard repairs to the electrical system or plumbing, cracked walls, peeling paint, broken light fixtures, or non-working switches and outlets. There might also be water damage or problems with the home’s foundation.

Structural Damage (Minor)
Most minor structural problems are easy to repair and do not pose a danger to the home’s inhabitants. The leading cause of minor structural damage is water damage. Water that comes into the home through windows, doors, or cracks in the foundation will cause minor structural problems.

Plumbing Problems
A home’s plumbing should be up to code and composed of new materials wherever possible. If a home inspector finds rusting pipes, lead-based materials, or broken fixtures, he or she will probably put these items on the home-inspection report.

Drafts
A home inspector will check to see whether the windows and doors of a home let air pass through. If this is a problem, it can usually be fixed by re-glazing windows and applying silicone caulking around the openings.

Ventilation Problems
If a home seems to have a problem regulating moisture, chances are that the home inspector will indicate that there are ventilation problems. This situation can be alleviated by installing fans and/or by adding windows that can be opened to bring fresh air into the home. Attics require adequate ventilation for heat efficiency.

Environmental Hazards
Few home inspectors specialize in environmental hazards. Therefore, it is a good idea to have environmental inspectors assess the home for hidden dangers either before or after the home inspector has finished his or her portion of the inspection. Here is a list of some of the types of environmental hazards that may be present in homes:

• Lead-Based Paint: The presence of lead-based paint is extremely dangerous, yet a typical home inspector may not be able to locate the problem. A special test must be performed to determine whether lead-based paint is present in a home. Removing the danger involves a process through which the walls are either sealed or removed and replaced. Lead poisoning is dangerous and can be fatal to young children.
• Radon Gas: A typical home inspector will probably not be able to detect the presence of this odorless and colorless gas that is known to cause cancer. If radon is discovered in a home, a mitigation pump will need to be installed to remove the gas. This installation is expensive.
• Drinking Water Issues: A water test can determine the purity of your home’s water supply. Correcting problems with the drinking water range from simple pipe replacement to the replacement of the entire home plumbing system, depending on the source of the problem.

Conclusion
Now that you are familiar with the top ten problems that home inspectors find, you are better prepared to react to the presence of such problems. You might be comfortable replacing a few missing roof shingles, but if the home has several of the problems described above, talk with the owners to find out how much they are willing to contribute to fix those problems. They could offer to pay for repairs and updates directly, or they could agree to lower the home’s purchase price.

Ask your realtor for a recommendation for a local home inspector who is properly certified. A home inspection is important for the health and safety of you and your family, and therefore the inspector should be chosen based upon the knowledgeable recommendations that you receive from others.

Knowing what to expect from a home inspection will make you a better homebuyer and a better homeowner. Never skip the home inspection, because that would be like buying a vehicle sight-unseen.

A home inspection report that reveals significant problems is usually an acceptable reason for a buyer to back out of a sale. Therefore, keep that in mind if you are unable or unwilling to do what is necessary to repair the flaws, backing out of the deal is one of your rights as a potential buyer.

North Texas is no stranger to spring storms, most of which consist of extremely high winds and hail. The most recent storms of April 2011 have left many homeowners needing new roofs, air conditioning units, windows and fences. The storm that passed through our area in the early morning hours of April 11th has been classified as ‘catastrophic’ by the insurance companies. What that means is there are too many claims for the local insurance adjusters to handle, so they’ve called in for contract adjusters to assist. It also means that insured persons who file claims as a result of this catastrophic event will not be penalized with rate increases, or dropped, because of it.

If you’re one of the unfortunate people in need of a new roof, please protect yourself and your investment before hiring a contractor. Your roof is one of your home’s largest components and potentially, the most expensive ticket item. Do not trust the work to just any company – do your research. You probably have numerous roofing companies pandering their services and offering free estimates. Unfortunately, many of them may be what’s known as ‘fly-by-night’ contractors. The state of Texas does not require any type of specific licensing for contractors or roofers. Therefore, anyone can start a business, buy business cards, put a magnet on their vehicle and call themselves a roofing company – regardless of their skill or knowledge. Know who you’re hiring before you sign any paperwork.

Here are five easy ways to check out your contractor before you hire them:

1. Check their Better Business Bureau registration. If they’re not accredited with the BBB then you might want to choose someone who is. If a business is accredited with the BBB, then the bureau has confirmed their licenses, references, advertising, time in business, complaint history, government actions, and owners or principals history.
2. Make sure the contractor is insured and bonded. Ask for an insurance certificate before signing documents and confirm the policy is still in effect by calling the insurance company who holds the policy.
3. Does the contractor have its own employees or do they use sub-contract labor and/or day workers? Sub-contractors would be responsible for their own insurance and warranties, not the company you hired. Day workers wouldn’t provide any benefit to you except the labor would cost less…for the contractor you hired.
4. Ask for references! Have the contractor provide you with a list of references and make sure you call as many as you can. References are no good to you if you don’t follow through.
5. Get a lien waiver. This is probably the most important thing you can do to protect yourself  and your home from future liens. The last thing you want is to have a mechanics lien filed against your home. There are numerous waivers to be completed during the process – if you choose to do it incrementally, that is up to you. But at the very least, have a final payment lien waiver signed by the contractor. This will insure that the contractor does not file an erroneous mechanics lien against your property at a later date. Believe it or not, it happens. Protect yourself.

I hope these items help you choose a contractor with confidence. One more thing I’d like to point out: if your roof is damaged, but has no penetrations and isn’t leaking – you might want to hold off replacing it until after spring. That’s what we intend to do.

Saving a dollar is always a smart idea, but in today’s economy it’s not only smart, it’s absolutely necessary. One of the best ways to save money and protect your investment is with a home warranty.

Owning a home is the American dream - but this dream has ongoing maintenance and repair costs. Many homeowners find themselves making numerous repairs throughout the year, piling up expenses. All it takes is one major breakdown to set a household into a financial tailspin. And that’s where your home warranty is useful.

Is a home warranty the same as homeowners insurance? No. A home warranty is a twelve month residential Read more…