My Home Passed Inspection, So It’s Perfect, Right?

This month's article is brought to you by Zillow's blog and author Mary Boone

Home inspectors are skilled at sniffing out wood rot and locating cracks in foundations. But even the most experienced inspectors can’t tell you about problems that lurk behind walls, between floor joists or inside sewer lines.

“The purpose of a home inspection is to find material defects that might have an adverse effect on the value of a home or its safety,” said Curtis Niles Sr., president of Armored Home Inspections in Pottstown, PA, and past president of the National Association of Home Inspectors. “We do that through a visual inspection, and we do it to the best of our ability. But we can’t find every single problem; no one could.”

A home inspection can help ensure your new home is both a good investment and a safe place to live, but it’s important to be aware of some key defects that can go undetected:

HVAC deficiencies

Problems with heating, ventilation and air conditioning systems (HVAC) can be difficult for home inspectors to uncover. Many inspectors are hesitant to run the air conditioning in extreme cold or to check the heat on a hot day because they don’t want to damage the unit by running it too long in adverse conditions.

“I can tell if a unit isn’t working, but I don’t have time during a home inspection to determine if the system is adequate for the house they’re trying to heat or cool,” Niles said. If you have concerns about the HVAC system, you may want to have it checked by a licensed HVAC specialist – separate from the home inspection.

Water damage, leaks

Your inspector will turn on faucets, but if a house hasn’t been lived in for a while, any previous water damage may be dried up and it will take a few days of use before leaks reappear. Even damage to walls or ceilings can be camouflaged by paint, making them difficult to detect.

If a faulty roof is the source of the leak, there’s a good chance your inspector won’t find it. Many inspectors visually assess roofs from the ground, but don’t go up onto them. Even if your inspector climbs onto the roof, snow, ice or fallen leaves may make it difficult to examine.

Environmental toxins

In 1978, the federal government banned the production of lead paint and asbestos-based construction materials. If the home you’re purchasing was built prior to 1978, you may want to invest in specialized testing for these toxins. Elevated radon levels, which can also be detected by a qualified radon tester, can occur in any home, regardless of its age, foundation type, location or heating system.

Lead paint, asbestos and radon can pose significant risks, but they’re not the sort of issues most home inspectors test for. If you are aware of these toxins before closing, you can ask the seller to help pay for abatement, containment or removal – and those costs can be significant. According to the Environmental Protection Agency, professional lead-based paint removal, for example, costs $8 to $15 per square foot – that’s $19,200 to $36,000 for a 2,400-square-foot house.

Blocked, damaged sewer lines

Property owners are responsible for the sewer line that runs from their home to the city main, and the best time to find out if that line is blocked or needs replacement is before buying a home – not after. A sewer line clog could lead to raw sewage backing up, out of the drains.

A standard home inspection will likely determine the type of drain pipe used and estimate its age but, it won’t cover the structural integrity or condition of sewer lines. If the home you’re thinking of buying is more than 20 years old, you may want to pay for a separate sewer scope to ensure the sewer line is in good shape and that tree roots have not worked their way into the line. Expect to pay $250 to $500 for a video sewer inspection, a fraction of the cost of sewer line replacement, which can run upward of $25,000.

An experienced home inspector can provide important information about the condition of the house you plan to buy, but to avoid unexpected costs after closing, you may need to go beyond a standard home inspection. Those extra tests and inspections won’t come cheap, but they may help you avoid unpleasant surprises later on.

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Buy a Home With These 10 Must-Do Steps

Realtor.com is a great resource for all of your home buying needs. The article below is written by them.

If you think the new year is going to be the year to put your rental days in your rear-view mirror and move into a home of your own, it’s time to start preparing.

Even if you won’t be ready to buy for six more months or even a year, here are 10 straightforward steps to take right now. Crossing these items off your list will make it easier for you to find and finance the home of your dreams.

1. Check your credit

Go to annualcreditreport.com and request free credit reports from all three credit reporting bureaus: TransUnion, Equifax and Experian. For a small fee, you can also get your credit score.

First up, check the reports thoroughly for any errors that need correcting and any negative information.

These reports should also indicate what you can do to improve your credit. A higher credit score makes it easier to qualify for the lowest interest rates, which in turn make your purchase more affordable.

2. Start saving

One trick is to save the difference between your rent and what you estimate your mortgage payment will be—or more. You’ll need cash reserves to buy a home, and you’ll need to prove to a lender that you can afford housing payments that may be higher than what you’re currently paying in rent.

3. Earn extra cash

If you’re low on cash, as most first-time buyers are, consider taking drastic steps to cut spending. Or try out some ways to increase your income, such as selling some of your stuff or taking a part-time job.

4. Start looking at neighborhoods

Unless you already know where you want to live, take the time to visit a variety of potential neighborhoods. You’ll want to scout out ‘hoods that meet your needs in terms of transportation options and other amenities. Exploring different locations will help you narrow your priorities.

5. Consult a lender

The sooner you visit a lender, the quicker you’ll know what you can afford and the steps you need to take to improve your credit or generate more income.

6. Investigate down payment assistance programs

Visit Down Payment Resource to learn about programs in your area that may help you find down payment money or a low-interest loan.

7. Attend a seminar or take classes on buying a home

Lenders and agents often offer free seminars that explain the home-buying process.

Many local government and nonprofit agencies also offer classes that can help you prepare for the financial responsibility of owning a home.

8. Decide how much you want to spend

A lender can give you an idea of how much you can borrow, but you have to create a personal budget to decide how much you will be comfortable spending on your mortgage payment.

9. Visit open houses

Try to avoid walking through homes you simply can’t afford—you don’t want to fall in love with something and then be dissatisfied with all other options.

Going to open houses early in your search will let you see what’s available in your area that might fit your budget. You can then begin to see what matters most in your decision: the location, room to entertain or outdoor space.

10. Interview REALTORS®

At each open house you’ll meet a REALTOR® who represents the seller of the home. As long as you don’t plan to make an offer on that particular home, there’s nothing wrong with striking up a conversation with the REALTOR® regarding your plans for buying a home. It’s a good idea to talk with and interview multiple REALTORS® to find one you can trust to have your best interests in mind.

Your Journey Home ---- the last few items

All’s been approved, repairs have been done and the appraisal has been completed and sent off to the loan underwriter by your lender for final approval.   All that’s left to do is to pack …. You hope.

In your haste to pack … do not pack any important financial documents.  TRUST ME, the lender will be calling and asking for some document that you know you have already provided.  But even more important than that is under no circumstances should you incur any new debt.  While it may seem like a good idea to go out and buy that new refrigerator so it can be delivered the day you move in, it isn’t.  I promise you the lender will pull your credit report 24hrs prior to closing and any new expenses can and will derail the closing.  My advice to buyers – especially to a first time buyer is if you cannot pay for an item in cash … don’t purchase it, wait till after closing and funding.

One other thing that you will need to do just before closing is your final walk-thru.   What is the final walk-through? It's your last chance to identify any problems before you move in. The walk-through generally takes place 1-2 days before the closing – once the seller has moved their belongings out of the house, if possible.  Here's a checklist of items to look over on your final walk-through:

-Check to make sure that all agreed to repairs have been completed and that you have copies of any receipts for those repairs.

- Electrical fixtures. Turn switches on and off to make sure everything is functioning properly.

- Plumbing. All the faucets in the kitchen, bathroom, and the exterior of the house should be turned on to make sure they are connected and there is decent water pressure. Flush the toilets to make sure they are draining properly.

- Exhaust. Test fans in the kitchen, bathrooms, and laundry room to make sure they are functional.

- Windows and doors. Do they close properly? Are they latching correctly? Do all of the locks work?

- Appliances. Run a check of the stove, oven, dishwasher, garbage disposal, trash compactor, refrigerator and freezer, washer and dryer, and any other appliances that the previous owner left behind.

- Environmental controls. Are the heating and air conditioning working properly? Check the furnace and make sure the water heater is providing adequately hot water.

- Safety. Are the smoke detectors and carbon monoxide detectors plugged in or are their batteries charged?

- Damage. Is there any evidence of disrepair, including leaks and water damage, that wasn't noted in your inspection report? Be especially vigilant to make sure that floors, walls, and door frames haven't been damaged during the removal of furnishings. Examine both the interior and exterior of the home for anything that needs to be repaired.

Make sure you haven't been left with any trash or belongings that the previous owner neglected to remove. Verify the presence of all items (appliances, window treatments, etc.) that were supposed to be part of the transaction.

- Keys. Make certain you have keys to all doors, outbuildings, and mailboxes as well as the garage door opener.

- Documents. Ask that the seller leave behind manuals for any household systems or appliances that will remain with the house. If there are home blueprints, records of modifications or renovations to the house, or other information that would be useful to have when you move in, make sure that you ask for them.

If the previous owner has been diligent, the home should be clean and you should be able to move right in with a minimum of extra work.

You will need to make sure that you have switched out utilities and have service turned on in your name – especially critical utilities such as gas, electricity & water – you don’t want those services turned totally off.  If they get turned off, it will most likely result in a reconnection fee which could be more costly than a name change on a bill – and let’s not forget that in cold temperature climates, turning off the heat  (be it gas or electric) can result in frozen pipes and broken water lines ….

It’s best to try and schedule your closing in the morning – that way funding can most likely occur in the early afternoon and you can get the keys to your new home and move in.  This is especially critical with new construction. Most builders will not turn over the keys to a property until they have their funds in the bank.  Sometimes the seller will have negotiated that they have a day after the closing to move out if this is agreeable to you that’s OK – but remember if that is the case you may not be able to do an empty home final walk-thru. 

BUT YOU HAVE MADE IT!!! You are now HOME!   All you need to do now is move in your boxes, decide where to place your belongings.

Your Journey Home – Getting a Home Inspection.

Home buyers are often clueless about home construction and its components, and getting a Home Inspection is the first step to understanding how your new home works. 

It’s very important that Home Buyers get a home inspection – this is not the place to try and save money.  Sometimes Buyers begin to think with their eyes – and not their heads.  Don’t let a shiny clean home lure you into believing that there are no issues.  Remember it’s the job of the home inspector to report on the condition of the home, and as I like to say “it’s their job to find issues.”  That does not mean that the issues that an inspector will find are what we like to call “deal breakers.”   A home inspection is just that a means for a buyer to have a neutral 3^rd party look at the condition of a home. Home inspections are not just for existing homes either; Builders' make mistakes, too.  So even with new or newer homes having the unbiased eye of a home inspector is very important. 

All home inspections are different and can vary dramatically from state to state, as well as across counties and cities. Much depends on the home inspector and which association, if any, to which the home inspector belongs.  In my marketplace the most prominent home inspection association is ASHI (American Association of Home Inspectors.  For a while the State of Kansas was requiring that all Home Inspectors become licensed and registered by the state and that licensing requirement followed the ASHI standards.

What does a home inspection report disclose? Inspection reports can be pretty intimidating.

General Home Inspection Checklist Items

Structural Elements including Garage-

This portion of an inspection covers the construction of all walls, ceilings, floors, roof and the foundation. It also covers the fascia, trim, doors, windows, lights and exterior receptacles.   The inspector might also comment on wall coverings (typically cosmetic, but can become an issue with a lender). Also included are landscaping, grading, elevation, drainage, driveways, fences, sidewalks, garage firewall, garage door, garage door openers and exterior windows.

Roof and Attic -

This portion will covers the framing, ventilation, type of roof construction and materials, flashing and gutters.  This part of the inspection is not a guarantee of roof condition nor is this a roof certification.  If an inspector feels that the roof is getting towards it’s useful life they may call for an inspection by a roofer.

Plumbing -

This portion will try to identify the type of pipe materials used for potable, drain, waste and vent pipes. It will also include the condition of toilets, showers, sinks, faucets and traps. It does not include a sewer inspection.  Understand however the inspector will not open up the walls to see what’s behind the sheetrock.

Systems and Components (Mechanical Items)-

This portion focuses on water heaters, furnaces, air conditioning and duct work.  Often it does not include chimney, fireplace and sprinklers (either lawn or fire suppression).

Electrical-

This portion will include the main panel, circuit breakers, types of wiring used, grounding, exhaust fans, receptacles, ceiling fans and light fixtures.

Appliances -

This portion covers the dishwasher, range and oven, built-in microwaves, garbage disposal and, yes, even smoke detectors. Typically however it will not cover washing machines, dryers, refrigerators or freezers.

However, a home inspector's standard practice typically does not include the following, for which a specific license to inspect and identify may be required:

Items typically not covered in a General Home Inspection

Asbestos

Radon, Methane, Radiation and Formaldehyde

Wood-Destroying Organisms & Rodents/Pests

Mold, Mildew and Fungi

Lead

I have rarely seen a perfectly clean inspection report, so don’t be surprised to see a 30+ page report.

Home Inspection Checklist Items Sellers Should Fix

So while Home Inspection Reports do not describe the condition of every component if it's in excellent shape, these reports should note items that are defective, needing service, or not operating in the manor that they were intended to operate. 

The serious problems are to look for are those that affect

 -Health and safety issues

 -Roofs with a short life expectancy

 -Furnace / A/C malfunctions

 -Foundation deficiencies

 -Moisture / drainage issues

Typically these are major components and are expensive to correct. So these are the items that you want to consider asking to be repaired or replaced.

Most contracts allow for a renegotiation time frame and use this time to discuss which items are minor, and which items are serious.  Every home will have issues noted or flagged in a home inspection, even in new and newer homes.  A repair issue that will be a deal breaker for a first-time home buyer, causing the buyer to cancel the contract, will not faze a home buyer versed in home repair. Talk to your agent, family and friends about the inspection report. 

Before issuing a formal request to repair, consider the seller's incentive to hire the cheapest contractor and to replace appliances with the least expensive brands.   So, if you have a choice, it might be smarter to hire your own contractors and supervise repairs.  In my marketplace this is typically done by asking the seller to pay some closing costs (as long as the amount you are asking for is not more than the amount allowed by the lender – this may not be an option if you have already asked for the maximum amount allowed in the original negotiations).  If you have already asked for the max closing costs to be paid for, your next option is to ask the seller to reduce the sales price.  If your only option is to have the Seller make repairs, such as repair requirement for some government loans like FHA or VA, ask that the Seller provide you with paid receipts for work done and the names of the individual who did the work.  Sometimes if the repairs are minor it can be acceptable for the seller to make the repairs - perhaps a simple solution is available such as replacing a $1.99 receptacle, which can resolve many outlet problems, and can be done by a seller.

So pat yourself on the back, for getting a home inspection. Once your inspection is done, and you and the Seller have agreed to repairs you all you need to do is to gather boxes and start packing …. Well maybe??